AYX and DDOG tell of two companies reporting numbers today.
AYX dropped 5.41% by end of market today, then another 18.65% after hours.
DDOG dropped 4.57% by end of market today, then another 6.29% after hours (although it was down +18% after hours at one point).
AYX reported a 2nd quarter revenue of 96.2m up 17% yoy, they had projected 95m as top end of the range in Q1 report. So they beat slightly 1.2%
Today AYX reported predicted 3Q revenue of 115m or 11% yoy. I would imagine they will slightly beat.
AYX also reported Full Year Revenue of 460-465m
That would make AYX Q4 revenue prediction of 145m (if using the higher 465m number). Last year AYX Q4 revenue number was 156.5m……So that is a negative yoy growth predicted for Q4. Its not even close. I know management is conservative but I do not see anyway they are going to be able to not be negative yoy revenue number for Q4 based on managements full year revenue predictions.
Q3 115m (predicted high end)
total of first three quarters equals 320m. Total year of 465m-320m(first three quarters)=145m for 4th Q
DDOG reported a 2nd quarter revenue of 140m in revenue 68% yoy, they had projected 136m as top end of the range in Q1 report. They beat slightly more 2.8%.
Today DDOG predicted 3Q revenue of 145m or 51% yoy. I would imagine they will beat slightly more.
DDOG also reported Full Year Revenue of 566-572m.
That would make DDOG Q4 revenue prediction of 200m…So that would be 75% yoy growth for Q4.
total of first three quarts equals 372m. Total year of 572m-372m=200m for 4th Q
This brings me to what I did with most of my AYX shares. I sold in after hours for 134.75 and 135.75. I still own less than 0.5% of portfolio in AYX. I used all of the proceeds plus some extra cash to buy DDOG shares after hours for 77.50 and 77.60.
The numbers do not lie. In my quest to be ruthless allocator of capital I made the switch. I will see how it works out over next few days. DDOG has already risen in after hours from where I bought quite a bit, AYX rose slightly from where I sold.