Datadog (NASDAQ: DDOG), a software as a service company that provides monitoring and analytics for cloud applications, has seen its stock price rise by about 20% over the last month to about $41 per share. The stock is up 51% from its IPO price of $27 per share. There are a couple of factors driving the rally. Firstly, the company posted strong Q3 results, as it broke even on an adjusted basis, while the markets were projecting a loss of about $0.14 per share. Revenue growth was also strong, with revenues expanding by 88% year-over-year to $96 million. Moreover, the company is witnessing increasing adoption of its new products. At the end of Q3, it indicated that 50% of its customers were using two or more of its products, up from 40% in Q2 and 15% a year ago.

We ‘step back’ from these recent swings to review Datadog’s performance over the last few years, as a context for what might come next. Our Interactive dashboard, What’s Driving The Rally In Datadog Stock? reviews the near term reasons and the big picture.

The context for the last few years:

A closer look At Datadog’s Total Revenues over the last few years and the outlook

Total Revenues for Datadog increased from $101 million in 2017 to $198 million in 2018, a growth of 97%. We expect revenues to grow to about $350 million in 2019, an increase of 77%

A closer look At Datadog’s Total Expenses over the last few years and the outlook

Total Expense for Datadog increased from $103 Mil in 2017 to about $208 Mil in 2018, an increase of 103%. We expect Total Expense growth to be 72% in 2019.

 

How has Datadog’s EBT trended?

EBT for Datadog decreased from -$2 million in 2017 to -$10.2 million in 2018, as Operating Expenses grew faster than Revenues. We expect EBT to increase to -$9 million in 2019.

How has Datadog’s Net Income and EPS trended?

For more details on Datadog’s Net Income, view our interactive dashboard analysis.

 

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