Datadog Shares Surge 30% in Response to Robust Q3 Earnings, Full-year Forecast Raised to $2.1 Billion

Strong Q3 results beat out analysts’ low expectations, citing a 5% revenue beat; cloud cybersecurity firm attributes success to 25% YoY revenue growth, 140 new major customers, and a positive outlook on easing optimization activity among clients.

Datadog's Q3 revenue was $547.5 million, exceeding the company's August forecast and marking a 25% YoY revenue growth.
The cloud cybersecurity company ended the quarter with 3,130 customers worth $100,000 in annual recurring revenue, an increase of 140 customers from the previous quarter.
Q3 GAAP operating losses of $4.2 million were significantly lower than Q2 losses of $22 million, indicating improved company performance.
Full-year revenue forecast was lifted to $2.1 billion from $2.0 billion following strong Q3 results.
Olivier Pomel, the CEO of Datadog, noted 'AI-native customers' contributed to 2.5% of the company's annualized revenue during Q3.