Datadog continues to land large customers with more than $1 million in annual recurring revenue, but the company's outlook for fiscal 2024 and the first quarter was below expectations.
The company, which features a cloud application monitoring and security platform, delivered a strong fourth quarter. The company had 396 customers with more than $1 million in annual recurring revenue, up from 317 a year ago.
Datadog reported fourth quarter earnings of 15 cents a share, or 44 cents on a non-GAAP basis, on revenue of $589.6 million, up 26% from a year ago. For 2023, Datadog delivered revenue of $2.13 billion, up 27% from a year ago, with net income of 14 cents a share.
That solid performance was overshadowed by its 2024 outlook. Datadog projected non-GAAP earnings per share of $1.38 to $1.44, below estimates of $1.78 a share. Datadog said 2024 revenue will range from $2.55 billion to $2.57 billion compared to estimates of $2.59 billion.
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The first quarter guidance was also below expectations with non-GAAP earnings of 33 cents a share to 35 cents a share compared to estimates of 39 cents a share. Datadog projected first quarter revenue of $587 million to $591 million compared to estimates of $586.24 million.
Datadog will hold an Investor Day in New York Feb. 15.
