Shares of data monitoring and analytics firm Datadog tanked after hours Thursday following the company’s second quarter earnings release.
The company reported 68% growth in revenue to $140 million with earnings of 5 cents per share. The New York City-based company was expected to report revenue of $135.4 million with a profit of a penny per share.
“Our growth at scale amid the global pandemic demonstrates Datadog’s importance in enabling the digital operations of our customers.” said Olivier Pomel, co-founder and CEO of Datadog. “COVID-19 has illuminated the need to be digital-first and agile, as well as the cloud as the IT architecture of choice to achieve these outcomes.”
Despite this, the stock dropped more than 15% to $76.35 after hours on Thursday. Expectations were high, with shares of Datadog up nearly 140% year to date heading into the earnings report.
For the third quarter, the company expects revenue between $143 million and $145 million vs. analyst estimates of $140.3 million.
Earnings for the period are expected to be between break even and a penny, also ahead of analyst estimates of a loss of a penny for the quarter.
For the year, the company expects revenue between $566 million and $572 million vs. analyst estimates of $563.57 million. Earnings are expected to be between 11 cents and 13 cents per share, ahead of estimates of a nickel per share.
Datadog swung to a profit in the previous quarter, reporting earnings of $18.8 million, or 6 cents a share, from a loss of $6.9 million, or 9 cents, in the year-earlier period.
Shares of Datadog fell about 4.6% in trading during the day, closing just shy of $90 per share.