5 Stocks that Beat Earnings Estimates

3. Datadog, Inc. (NASDAQ: DDOG)

Number of Hedge Fund Holders: 44

Datadog has grown from a small startup in 2010 to a leading software company with a market value of over $40 billion. The company recently delivered impressive results for the second quarter. Its adjusted of 9 cents per share crushed analysts’ average estimate of 3 cents per share.

Moreover, revenue for the quarter climbed 67 percent on a year-over-year basis to $235.5 million, exceeding the consensus forecast of $212.5 million. One of the main drivers behind robust sales growth was a strong surge in big customers.

CEO Olivier Pomel said in a statement, “Our high growth at scale demonstrates that we continue to be a trusted partner in our customers’ digital transformation and cloud migration journeys. We continue to expand the features and functionality of our cloud native end-to-end observability platform. Meanwhile, we are just getting started on our journey to break down silos between DevOps and Security teams with our Cloud Security Platform.”

Datadog also updated its financial guidance for FY 2021. It expects adjusted earnings in the range of 26-28 cents per share for the full year, well above its previous forecast of 13 cents-16 cents per share. Revenue is expected to come between $938-$944 million, compared to its earlier outlook between $880-$890 million.