Datadog Inc (NASDAQ:DDOG) shares fell 11% after the cloud software monitoring and security platform reported first quarter earnings, even thought revenue and income was better than guidance, and the full-year outlook was hiked.
The company said Amit Agarwal, former Dell and IBM veteran, is stepping down as president at the end of the year but is expected to join the board of directors.
Revenue came to $611 million for the first quarter of 2024, an increase of 27% year-over-year and at the top end of guidance.
Underlying operating income was $164 million at a margin of 27%, up from $86.4 million and 18% a year earlier and better than the top end of guidance, while earnings per share (EPS) were $0.44 versus the top end of EPS guidance of $0.35.
CEO Olivier Pomel said the company "executed solidly" in the quarter, with sales growing and product innovation continuing.
For the second quarter, he expects revenue of $620 million to $624 million, rising to $2.59 billion to $2.61 billion for the year (up from $2.56 billion to $2.575 billion).
Guidance for underlying EPS for the second quarter was hiked to $0.34 to $0.36, and $1.51 to $1.57 for the full year (up from $1.38 to $1.44 before).
Shares fell 10.6% to $114 on Tuesday morning, having risen over 60% over the past 12 months.