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Shares in Datadog Inc. closed regular trading up almost 6% today after the\u00a0application monitoring and security platform provider impressed investors with earnings and revenue beats in its fiscal second quarter.<\/p>\n
For the quarter ended June 30, Datadog reported adjusted earnings per share of 43 cents, up from 29 cents in the same quarter of 2023, on revenue of $645 million, up 27% year-over-year. Analysts had been expecting<\/a> earnings per share of 37 cents on revenue of $642.92 million.<\/p>\n Datadog ended the quarter with around 28,700 customers, up from 26,100 as of the end of June last year and 3,390 customers with an annual recurring revenue of $100,000, up from 2,990 the year prior. The increasing number of customers saw Datadog generate a free cash flow of $144 million through the quarter on a cash flow margin of 22%.<\/p>\n As part of a platform adoption strategy that involves encouraging customers to use multiple Datadog products, 83% of the company\u2019s customers are now using two or more products, up from 82% a year ago, and 49% are using four or more products, up from 45%.\u00a0A quarter of Datadog\u2019s customers were using six or more products and 11% of customers were using eight or more products.<\/p>\n Business highlights in the quarter included Datadog releasing\u00a0Log Workspaces, a collaborative space enabling analysts and engineers across an organization to connect logs and datasets, build multistage queries and perform sophisticated analytics on business, security and application issues.<\/p>\n Other product announcements included the launch of Datadog On-Call, an on-call experience with observability-enriched paging and streamlined incident management workflows,\u00a0the general availability of LLM Observability for monitoring large language model applications and Kubernetes Autoscaling, which automates resource optimization and scaling.<\/p>\n \u201cDatadog executed well in the second quarter, with 27% year-over-year revenue growth, continued customer growth and expanding multi-product adoption across our platform,\u201d co-f0under and Chief Executive Olivier Pomel said in the company\u2019s earnings release<\/a>.<\/p>\n For its fiscal third quarter, Datadog expects to see revenue of $660 million to $664 million and earnings per share of 38 to 40 cents. For the full year, the company expects revenue of $2.62 million to $2.63 billion and earnings of $1.62 to $1.66 per share.<\/p>\nImage:\u00a0Datadog<\/a><\/h5>\n