Cloud monitoring and security platform provider Datadog (NASDAQ:DDOG) reported its earnings for the fourth quarter beat analyst expectations, but the company issued guidance that feel short of estimates. As a result, shares fell 14% in premarket trading.
The company posted adjusted earnings per share of $0.49, beating the analyst consensus of $0.43. Revenue for the quarter came in at $737.7 million, up 25% year on year and higher than the $714.2 million estimate.
However, Datadog’s outlook was disappointing for investors. For the first quarter of 2025, the company expects revenue between $737 million and $741 million, below the $741.7 million consensus.
Full-year 2025 revenue guidance of $3.175 billion to $3.195 billion also missed expectations of $3.24 billion.
Olivier Pomel, co-founder and CEO of Datadog, said, “We are pleased with our strong execution in fiscal year 2024, with 26% year-over-year revenue growth, $871 million in operating cash flow, and $775 million in free cash flow.”
Datadog reported it has 462 customers with annual recurring revenue of $1 million or more as of December 31, up 17% from the previous year. Customers with ARR of $100,000 or more increased 13% to about 3,610.