Datadog (DDOG:US) reported strong third-quarter results that exceeded expectations and increased its full-year forecast.

Shares rose as much as 25% on Tuesday. 

Moreover, the company’s earnings report had a positive impact on shares of software companies, including Snowflake (SNOW:US), MongoDB (MDB:US), and Cloudflare (NET:US).

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.

Congressman Daniel Goldman sold $15,000 - $50,000 worth of DDOG shares on April 10, when they closed at $66.14. The stock was trading around $100 apiece on Tuesday.