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Datadog (DDOG) to Post Q4 Earnings: What's in the Offing?

Datadog DDOG is slated to release fourth-quarter 2021 results on Feb 10.

For the fourth quarter, the company expects revenues between $290 million and $292 million. Non-GAAP earnings are anticipated between 11 cents and 12 cents per share.

The Zacks Consensus Estimate for revenues stands at $291.17 million, suggesting an improvement of 64.01% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at 11 cents per share, unchanged over the past 30 days and indicating growth of 83.33% from the year-ago quarter.

Datadog’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 154.17%.

Datadog, Inc. Price and EPS Surprise

Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote

Factors to Note

Datadog’s fourth-quarter performance is likely to have benefited from digital transformation and cloud migration.

Solid adoption of newer products including Real User Monitoring, Synthetic Monitoring and Application Performance Monitoring is expected to have aided customer wins in the to-be-reported quarter.

Contributions from a strong cloud partner base has been a key growth driver.

Datadog’s expanding portfolio of integrated solutions has been acting as a major catalyst in expanding its customer base. The company ended third-quarter 2021 with 1,800 customers with ARR of more than $100K, up 66% year over year. The firm’s dollar-based net retention rate was more than 130% in the last-reported quarter.

However, increasing expenses on research & development, marketing and headcount expansion amid stiff competition in the on-premises infrastructure monitoring space might have limited margin expansion in the fourth quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Datadog has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:

Onto Innovation ONTO has an Earnings ESP of +0.90% and a Zacks Rank #2. The company is scheduled to release fourth-quarter 2021 results on Feb 8. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Onto’s shares have gained 53% in the past year against the Zacks Nanotechnology industry fall of 67.7% and the Zacks Computer and Technology Sector’s rise of 2.4%, respectively.

Mandiant MNDT has an Earnings ESP of +2.50% and a Zacks Rank #1. The company is slated to release fourth-quarter 2021 results on Feb 8.

Mandiant’s shares have tumbled 29.8% in the past year against the Zacks Security and the Zacks Computer and Technology Sector’s rise of 31% and 2.4%, respectively.

ACM Research ACMR has an Earnings ESP of +8.62% and a Zacks Rank #1. The company is scheduled to release fourth-quarter 2021 results on Feb 24.

ACM Research’s shares have declined 24.5% in the past year against the Zacks Semiconductor Equipment - Material Services return of 2.5% and the Zacks Computer and Technology sector’s return of 2.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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ACM Research, Inc. (ACMR): Free Stock Analysis Report
 
Datadog, Inc. (DDOG): Free Stock Analysis Report
 
Onto Innovation Inc. (ONTO): Free Stock Analysis Report
 
Mandiant, Inc. (MNDT): Free Stock Analysis Report
 
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