Datadog Stock Slumps as Downbeat Projections Outweigh Solid Q4 Results

Key Takeaways

Datadog ( DDOG ) shares fell around 9% Thursday morning as weaker-than-expected projections for the first quarter and rest of 2025 offset a fourth quarter that topped estimates.

The software maker posted adjusted earnings per share of $0.49 on revenue of $738 million, each better than analysts had expected, according to estimates compiled by Visible Alpha.

Datadog said it had 462 customers with an annualized revenue run rate greater than $1 million at the end of the quarter, about 25 fewer such customers than analysts had expected.

Despite the strong fourth quarter, Datadog's forecasts for the current quarter and full year mostly came in short of estimates.

First Quarter, Full-Year Forecasts Mostly Short of Estimates

The company expects first-quarter revenue and adjusted EPS between $737 million to $741 million and $0.41 and $0.43, respectively, compared to the $740.58 million and $0.46 per share analyst consensus.

The full-year projections of $3.175 billion to $3.195 billion and $1.65 to $1.70 per share were also below estimates, with the EPS range coming in well below the $2.04 per share that analysts had expected.

Shares of the software maker were down around 9% on Thursday and only up slightly from the same time last year.

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