Shares of Datadog fell about 11% premarket on Thursday after fourth quarter results beat estimates, but outlook came slightly below expectations.

Outlook Q1: Datadog, which provides a security platform for cloud applications, expects first quarter revenue to be between $737M and $741M (midpoint at $739M), which was below consensus estimate of $739.90M. The company forecast non-GAAP net income per share to be in the range of $0.41 to $0.43 (midpoint at $0.42) versus $$0.45 consensus.

Outlook full year 2025: The company expects revenue between $3.175B and $3.195B (midpoint at $3.185B) versus consensus of $3.24B. Datadog expects non-GAAP net income per share between $1.65 and $1.70 (midpoint at $1.675) versus consensus of $1.98.

"Looking forward to 2025, we are excited about our plans to deliver more innovation and help our customers with their complex challenges in modern Observability, Cloud Security, Software Delivery, Cloud Service Management, and Product Analytics," said Datadog's Co-Founder and CEO Olivier Pomel.

Q4 metrics: For the fourth quarter ended Dec. 31, non-GAAP EPS grew about 11.3% year-over-year to $0.49, while revenue jumped around 25% year-over-year to $738M. Both top and bottom-line numbers beat estimates.

As of Dec. 31, 2024 the company had about 462 customers with Annual recurring revenue, or ARR, of $1M or more, an increase of 17% from 396 as of Dec. 31, 2023.

Meanwhile, as of Dec. 31, 2024, Datadog had about 3,610 customers with ARR of $100,000 or more, an increase of 13% from 3,190 as of Dec. 31, 2023.

Related stocks: Zscaler Inc., Elastic N.V., and Dynatrace Holdings LLC were largely flat premarket on Thursday.