Datadog forecasts slower quarterly revenue growth, shares tumble

Datadog posted second-quarter revenue of $1.12 billion, beating analysts' average estimate of $1.08 billion, according to data compiled by LSEG.

Adjusted profit per share came in at 65 cents, above analysts' estimates of 59 cents.

The company forecast third-quarter revenue of $1.14 billion to $1.15 billion, above analysts' average estimate of $1.11 billion.

Datadog raised its full-year revenue forecast to $4.45 billion to $4.47 billion from $4.30 billion to $4.34 billion.

Datadog provides cloud-based monitoring and security software that helps businesses manage their applications and IT infrastructure. Its shares have more than doubled so far this year, as demand for its software has benefited from cloud migration and growing adoption of AI applications.

The New York-based company's customers include LG, Nasdaq, Comcast, Cognizant, and PayPal among others.

Datadog said it expects revenue growth to slow in the third quarter, overshadowing its raised annual outlook and sending the high-flying stock down more than 15% in premarket trading on Thursday.