A logo for Datadog is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. REUTERS/Benoit Tessier
(Reuters) -Datadog forecast fourth-quarter earnings above Wall Street estimates on Thursday, betting on strong demand for its cloud-security products from businesses adopting artificial intelligence technology.
Shares of Datadog, which have risen 8.5% so far this year, gained nearly 10% in premarket trading.
Growing AI use and cloud migration are driving demand for Datadog's monitoring and security tools that provide real-time protection, access control and device oversight.
Datadog joined the S&P 500 in July and counts Shell, PayPal and Comcast among its customers.
It forecast fourth-quarter revenue between $912 million and $916 million, above analysts' average estimate of $887.27 million, according to data compiled by LSEG.
The company expects its adjusted profit per share to be between 54 cents and 56 cents for the fourth quarter, above analysts' estimate of 46 cents.
Its revenue rose 28% to $885.65 million in the third quarter, beating estimates of $852.78 million. Adjusted profit per share was 55 cents, also beatingestimates of 47 cents.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Krishna Chandra Eluri)
