DDOG growth notes

Datadog had 9,500 customers as of Sept. 30, up from 7,100 a year earlier. The firm expects a December quarter loss of 1 cent to 2 cents per share vs. analyst estimates of a 5-cent loss. In fiscal 2020, analysts project a 15-cent per share loss vs. 30 cents in 2019. Revenue growth has accelerated for the past two quarters.

Raymond James analyst Michael Turits recently initiated coverage on Datadog stock with a market perform rating based on valuation.

“We expect a next-gen buying cycle driven by the need to monitor cloud workloads and new (tech) architectures,” Turits said. “While monitoring is a competitive space, Datadog is gaining share, with particular expertise in cloud workloads and new (tech) architectures.”