Datadog Down 4%

(RTTNews) - Shares of Datadog, Inc. (DDOG), a monitoring and security platform for cloud applications, are falling more than 4% Thursday morning at $107.62. While the company reported strong second-quarter results, the bottom end of its outlook for earnings as well as revenue fell slightly below the consensus estimates.

Separately, the company also announced acquisition of Seekret, an API observability company.

For the third quarter, the company expects revenue between $410 million and $414 million and adjusted net income per share between $0.15 and $0.17. On average, 18 analysts polled by Thomson-Reuters expect the company to report earnings of $0.16 per share on revenue of $412.07 million.

For the full year, revenue is expected between $1.61 billion and $1.63 billion and adjusted net income per share to be between $0.74 and $0.81. The consensus estimate for revenue is at $1.62 billion and earnings is for $0.75 per share.

For the second quarter, Datadog reported net loss of $4.88 million or $0.02 per share, narrower than $9.36 million or $0.03 per share loss a year ago.

Excluding one-time items, the company posted earnings of $83.77 million or $0.24 per share.

Second-quarter revenue grew 74% year-over-year to $406.14 million.

Analysts were expecting earnings of $0.15 per share on revenue of $380.91 million.

"Adding Seekret's platform will give us an opportunity to build many different capabilities for our customers for API observability, security and collaboration," said Renaud Boutet, Senior Vice President of Product at Datadog.

DDOG has traded in the range of $81.12-$199.68 in the past 52 weeks.