Datadog, Inc. (NASDAQ:DDOG) surged 25% on early action Tuesday following a strong beat and raise quarter.
The security and cloud applications company posted third quarter revenue growth of 25% to $548 million, which easily topped the Wall Street consensus estimate of $524.73 million.
The company reported strong growth of larger customers. Datadog said at the end of the quarter it had 3,130 $100k+ ARR customers, up 20% from the 2,600 number a year ago.
Non-GAAP net income per diluted share was $0.45 in the quarter, versus the consensus of $0.34.
"We were pleased with our execution in the third quarter, with 25% year-over-year revenue growth, robust new logo bookings, and a continued focus on solving our customers' DevSecOps pain points," said Olivier Pomel, co-founder and CEO of Datadog.
Looking ahead, the company sees fourth quarter Non-GAAP EPS of $0.42-$0.44, versus the consensus of $0.35. They see fourth quarter revenue of $564-568 million, versus the consensus of $543.7 million.
For the full year, they see Non-GAAP EPS of $1.52-$1.54, versus the consensus of $1.33. They see full year revenue of $2.103-$2.107 billion, versus the consensus of $2.06 billion.