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Data Market Soars with DataDog's Performance

information technology news Nov 08, 2023

DataDog and other AI-enabling software players are putting up massive numbers this morning after $DDOG reported 20% customer growth coupled with an immense revenue and profit beat. It's data season, folks! And this is playing out exactly like our analysts thought it would. Our entire AI-enabler portfolio is up as $DDOG, $MDB, and $SNOW are all pushing gains this morning.

DataDog's Exceptional Performance

DataDog smashed analyst expectations by generating a $0.45 EPS from $547 million in revenue for Q3. DataDog is effectively proving the model that their product becomes more efficient the more customers use it. The Street simply did not expect demand for cloud products to be this high this early. Not only are DataDog's customer numbers surging, but customers who pay them more than 100k annually rose 20% YoY. DataDog is becoming a premier provider for enterprise customers.

Hockey Stick in the Forecast

DataDog also posted guidance that reflected a far rosier outlook for Q4 than anyone expected. As more and more companies decide to jump on the Cloud and AI train, enablers like DataDog are going to see outsized investment. The only question left is when DataDog will find its level in the market and stop accelerating, but that doesn't appear to be something the market is even remotely concerned about right now.

Why It Matters

This time last year, investors across the economy were concerned that cloud computing was about to hit a structural decline. Instead, Cloud providers and companies like DataDog that make cloud systems more efficient are ascendant as companies push into the AI space. With the data economy getting proven more and more every day, DataDog stock soared over 20% in the first minutes of trading.