Datadog, Inc. reported its fourth quarter 2024 earnings on February 13, 2025, with revenue reaching $738 million, which topped analysts' expectations. Despite the revenue beat, the company's forecast for full-year 2025 revenue and profit fell below Wall Street expectations.
The conservative outlook for 2025 is attributed to sluggish customer spending on cloud security services, as enterprises are cutting budgets due to economic uncertainty. This deceleration in growth rates is a key concern for investors, despite solid earnings and cash flow generation in Q4.
The company's projected revenue growth for 2025 is around 19%, a slowdown from previous years' rapid expansion. This guidance suggests that while Datadog continues to perform well operationally, macroeconomic headwinds are influencing its near-term growth projections.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.