Datadog's Stellar Earnings Come With a Stiff Valuation
Datadog's (NASDAQ: DDOG) first earnings report after its initial public offering in September didn't disappoint investors, to say the least. The cloud-based monitoring and analytics vendor released third-quarter results last week that were above ambitious expectations, and it's likely to outperform its market over the medium term.
Given these positive developments, the company's market capitalization increased by more than $1.9 billion overnight, which suggests investors expect Datadog to deliver stellar results over the long term without pricing any risk.
During the third quarter, Datadog posted revenue of $95.9 million, up 87.8% year over year and way above analysts' expectations of $87.73 million. This performance represents a solid acceleration compared to the first-half strong revenue growth of 79.5%.
Source Fool.com
