We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Datadog (DDOG) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Datadog (DDOG - Free Report) reported fourth-quarter 2021 non-GAAP earnings of 20 cents per share, which beat the Zacks Consensus Estimate by 81.82%. The bottom line also improved from non-GAAP earnings of 6 cents reported in the year-ago quarter.
The company’s net revenues of $326 million surpassed the consensus mark by 12.03%. The figure increased 84.2% year over year.
Quarter Details
Steady customer additions drove the top line in the fourth quarter. Datadog had more than 18,800 customers at the end of the fourth quarter, up from 14,200 in the year-ago quarter.
Of these customers, 2,010 have an annual run rate (ARR) of $100K or more, up from 1,228 in the year-ago quarter. These customers generate about 83% of total ARR.
As of the end of the fourth quarter, 78% of customers used two or more products, up from 72% a year ago. Additionally, 33% of customers utilized four or more products, up from 22% in the year-ago quarter.
Datadog’s dollar-based retention rate was above 130% in the fourth quarter, driven by increased usage and adoption of existing and new products.
During the fourth quarter, APM suite and log management products contributed significantly to the top line. Newer products launched since 2019 have been adopted by customers quite well as they contributed $100 million in ARR in fiscal 2021.
Datadog announced a global strategic partnership with Amazon Web Services to integrate further into the Amazon marketplace to accelerate growth. In 2021, Datadog launched 80 new integrations covering cloud, CDN, web platforms and automation platforms, which have strengthened the company’s presence in the market.
In the fourth quarter, Datadog’s adjusted gross margin increased 320 basis points (bps) on a year-over-year basis to 80.4%.
Research & development, as a percentage of revenues, expanded 260 bps to 40.8%, driven by increased investments in Datadog’s platform.
Sales and marketing expenses, as a percentage of revenues, declined 660 bps to 27.3%. General & administrative expenses, as a percentage of revenues, contracted 130 bps to 8.8%.
Datadog reported non-GAAP operating income of $71 million compared with $18 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Datadog had cash, cash equivalents and marketable securities of $1.6 billion compared with $1.5 billion as of Sep 30, 2021.
Operating cash flow was $116 million in the reported quarter, up from $67.4 million reported in the previous quarter.
Free cash flow during the quarter was $107 million compared with $57.1 million in the prior quarter.
Guidance
For the first quarter of 2021, Datadog anticipates revenues between $334 million and $339 million. Non-GAAP earnings are expected to be 11-12 cents per share.
Non-GAAP operating income is expected in the range of $36 million to $41 million.
For full-year 2022, Datadog anticipates revenues between $1.51 billion and $1.53 billion. Non-GAAP earnings are expected between 45 cents and 51 cents.
Non-GAAP operating income is expected in the range of $160 million to $180 million.
Zacks Rank & Stocks to Consider
Currently, Datadog carries a Zacks Rank #4 (Sell).
Datadog’s shares have rallied 48.5% compared with the Zacks Computer and Technology sector’s return of 3.6% in the past year.
Some better-ranked stocks in the same sector are Analog Devices (ADI - Free Report) , Veeco Instruments (VECO - Free Report) and Agilent Technologies (A - Free Report) .
Image: Bigstock
Datadog (DDOG) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Datadog (DDOG - Free Report) reported fourth-quarter 2021 non-GAAP earnings of 20 cents per share, which beat the Zacks Consensus Estimate by 81.82%. The bottom line also improved from non-GAAP earnings of 6 cents reported in the year-ago quarter.
The company’s net revenues of $326 million surpassed the consensus mark by 12.03%. The figure increased 84.2% year over year.
Quarter Details
Steady customer additions drove the top line in the fourth quarter. Datadog had more than 18,800 customers at the end of the fourth quarter, up from 14,200 in the year-ago quarter.
Of these customers, 2,010 have an annual run rate (ARR) of $100K or more, up from 1,228 in the year-ago quarter. These customers generate about 83% of total ARR.
As of the end of the fourth quarter, 78% of customers used two or more products, up from 72% a year ago. Additionally, 33% of customers utilized four or more products, up from 22% in the year-ago quarter.
Datadog’s dollar-based retention rate was above 130% in the fourth quarter, driven by increased usage and adoption of existing and new products.
During the fourth quarter, APM suite and log management products contributed significantly to the top line. Newer products launched since 2019 have been adopted by customers quite well as they contributed $100 million in ARR in fiscal 2021.
Datadog announced a global strategic partnership with Amazon Web Services to integrate further into the Amazon marketplace to accelerate growth. In 2021, Datadog launched 80 new integrations covering cloud, CDN, web platforms and automation platforms, which have strengthened the company’s presence in the market.
Datadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
Operating Details
In the fourth quarter, Datadog’s adjusted gross margin increased 320 basis points (bps) on a year-over-year basis to 80.4%.
Research & development, as a percentage of revenues, expanded 260 bps to 40.8%, driven by increased investments in Datadog’s platform.
Sales and marketing expenses, as a percentage of revenues, declined 660 bps to 27.3%. General & administrative expenses, as a percentage of revenues, contracted 130 bps to 8.8%.
Datadog reported non-GAAP operating income of $71 million compared with $18 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Datadog had cash, cash equivalents and marketable securities of $1.6 billion compared with $1.5 billion as of Sep 30, 2021.
Operating cash flow was $116 million in the reported quarter, up from $67.4 million reported in the previous quarter.
Free cash flow during the quarter was $107 million compared with $57.1 million in the prior quarter.
Guidance
For the first quarter of 2021, Datadog anticipates revenues between $334 million and $339 million. Non-GAAP earnings are expected to be 11-12 cents per share.
Non-GAAP operating income is expected in the range of $36 million to $41 million.
For full-year 2022, Datadog anticipates revenues between $1.51 billion and $1.53 billion. Non-GAAP earnings are expected between 45 cents and 51 cents.
Non-GAAP operating income is expected in the range of $160 million to $180 million.
Zacks Rank & Stocks to Consider
Currently, Datadog carries a Zacks Rank #4 (Sell).
Datadog’s shares have rallied 48.5% compared with the Zacks Computer and Technology sector’s return of 3.6% in the past year.
Some better-ranked stocks in the same sector are Analog Devices (ADI - Free Report) , Veeco Instruments (VECO - Free Report) and Agilent Technologies (A - Free Report) .
Analog Devices, Agilent Devices and Veeco Instruments sport Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Veeco Instruments shares have rallied 30.5% in the past year.
VECO is slated to report fourth-quarter 2021 results on Feb 16.
Agilent Technologies’ shares have surged 11.6% in the past year.
Agilent is scheduled to report first-quarter 2022 results on Feb 22.
Analog shares have returned 1.8% compared with the Zacks Computer and Technology sector’s growth of 3.6% in the past year.
ADI is slated to report first-quarter 2021 results on Feb 16.