Shares rose as much as 25% on Tuesday.
For the full year, Datadog sees adjusted EPS in the range of $1.52 to $1.54, exceeding the consensus estimate of $1.33. Revenue is projected to range from $2.10 billion to $2.11 billion, surpassing the estimate of $2.06 billion.
Regarding the fourth quarter forecast, adjusted EPS is expected to be in the range of $0.42 to $0.44, compared to the estimate of $0.35. Revenue for the fourth quarter is forecasted to be in the range of $564 million to $568 million, surpassing the estimate of $543.7 million.
In the third quarter, Datadog reported revenue reached $547.5 million, reflecting a 25% year-over-year increase, exceeding the estimate of $523.5 million.
"We were pleased with our execution in the third quarter, with 25% year-over-year revenue growth, robust new logo bookings, and a continued focus on solving our customers' DevSecOps pain points," said Olivier Pomel, co-founder and CEO of Datadog.
Adjusted EPS for the third quarter was $0.45, compared to $0.23 in the previous year and surpassing the estimate of $0.34.