Datadog (DDOG) to Report Q1 Earnings: What’s in the Cards?


Datadog DDOG is set to release first-quarter 2024 results on May 7.

For the first quarter of 2024, Datadog anticipates revenues between $587 million and $591 million. The Zacks Consensus Estimate for the same is currently pegged at $589.97 million, suggesting 22.47% growth from the year-ago period.

Non-GAAP earnings are expected in the range of 33-35 cents per share. The Zacks Consensus Estimate for earnings has remained unchanged at 34 cents per share over the past 30 days, indicating growth of 21.43% from the year-ago period.

Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 19.98%.

Let’s see how things have shaped up prior to this announcement.

Datadog, Inc. Price and EPS Surprise

Datadog, Inc. Price and EPS SurpriseDatadog, Inc. Price and EPS Surprise

Datadog, Inc. Price and EPS Surprise

Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote

Factors to Consider

Datadog’s first-quarter performance is expected to have benefited from the increased adoption of its cloud-based monitoring and analytics platform, owing to the accelerated digital transformation and cloud migration across organizations.

Significant investments in sales and marketing to engage customers, increase brand awareness and drive adoption of its platform and products are likely to have resulted in a growing customer base in the to-be-reported quarter.

In the fourth quarter of 2023, DDOG had about 3,190 customers with an annual run rate of $100K or more, which increased 15% year over year. The momentum is expected to have continued in the to-be-reported quarter.

As of the end of the fourth quarter, 83% of customers used two or more products, up from 81% in the year-ago quarter. Additionally, 47% of customers utilized four or more products, up from 42% in the year-ago quarter.

Datadog’s dollar-based retention rate was in the mid-110s as customers increased their usage and adopted more products.

The company introduced new capabilities for its Cloud Cost Management product and observability space. These updates are expected to have boosted clientele growth in the to-be-reported quarter.

What Our Model Indicates

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Datadog has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

NVIDIA NVDA has an Earnings ESP of +2.50% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA is scheduled to release first-quarter 2024 results on May 22. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $5.49 per share, indicating growth of 403.67% from the year-ago quarter’s reported figure.

Arista Networks ANET has an Earnings ESP of +2.49% and sports a Zacks Rank #1 at present.

ANET is set to report first-quarter 2024 results on May 7. The Zacks Consensus Estimate for the company’s earnings is pegged at $1.74 per share, indicating a rise of 21.68% from the year-ago quarter’s reported figure.

Docebo DCBO has an Earnings ESP of +8.00% and a Zacks Rank #3 at present.

Docebo is set to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 17 cents per share, indicating growth of 88.89% from the year-ago quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

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