Expectations are high for investors in Datadog Inc (NASDAQ:DDOG) ahead of Tuesday’s quarterly financials and could be exceeded, according to California-based stockbroker Wedbush.
Revenue guidance for the second quarter is pitched at US$480 million to US$502 million, which would equate to 23% growth year-over-year. The quarter’s earnings are meanwhile forecast between 27 and 29 cents per share.
Analysts at Wedbush, however, point out in a note that typically Datadog metrics often land at the upper end of expectations and guidance provided by the company may prove conservative.
“Buyside expectations are for a ‘typical’ beat on the high end of the guide and we have heard numbers ranging from $520m - $522m, which translates to 28% to 29% year-on-year growth vs. 33% year-on-year last quarter.
“Given that these numbers are in-line with DDOG’s typical beat above the high end of its guide for the last few quarters, these expectations don’t appear too aggressive,” analyst Taz Koujalgi said in a note.