By Mackenzie Tatananni

Datadog stock slid Thursday after the monitoring and analytics platform issued first-quarter and full-year earnings guidance that fell short of expectations.

Datadog said it expects first-quarter adjusted earnings in the range of 41 cents to 43 cents a share, missing analysts' calls for 46 cents. The company also forecast revenue between $737 million and $741 million versus Wall Street expectations for $740 million.

For the full year, the company anticipates adjusted earnings of $1.65 to $1.70 a share, a far cry from the $2.02 a share penciled in by analysts. Datadog's revenue guidance was equally disappointing, with a range of $3.175 billion to $3.195 billion falling below analysts' expectations for $3.24 billion.

Shares fell 11% to $131.55.

For the fourth quarter, Datadog posted adjusted earnings of 49 cents a share, surpassing analysts' calls for 43 cents. Revenue rose 25% to $737.7 million, beating expectations for $714.5 million as well as the company's own guidance range of $709 million to $713 million.

Datadog, which counts SoFi, Samsung, and Shell among its clients, pointed to the "strong growth of larger customers" in 2024.

As of Dec. 31, the enterprise-software company had 462 customers with annual recurring revenue of $1 million or more, up 17% from the previous year. The number of customers with ARR of $100,000 or more increased 13% to 3,610.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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February 13, 2025 10:14 ET (15:14 GMT)

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