Datadog Beat on Revenue, Beat on Earnings, and Raised Its Outlook. The Stock Fell 19%.
So why did a 36% growth quarter set off a double-digit sell-off?
Overview
Shares of Datadog (NASDAQ: DDOG) sank about 19% Thursday after the software company reported its second-quarter results. The reaction might seem odd.
Revenue grew 36% year over year, landing about $40 million above the high end of the range management forecast in May. Adjusted earnings came in ahead of the company's own guidance, too. And management raised its full-year outlook for both revenue and earnings.
Details
But the market wasn't grading the quarter. It was grading what comes next. And tucked inside the raised outlook is a number implying Datadog's growth could slow meaningfully from here.
Source
Originally published at www.fool.com.
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