Datadog Dips on Slowing Growth by Current Customers Despite Earnings Beat

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Investing.com —  Datadog (NASDAQ:DDOG) sank 14% on Friday after acknowledging slower growth from existing customers, despite beating earnings expectations and boosting guidance. 

Earnings per share of 5 cents compared to the expected 1 cent per share loss on sales of $140 million versus the forecast of $135 million, according to analysts tracked by Investing.com.

“I think what we’ve seen mostly is they’re slowing the usage of the cloud infrastructure that’s directly related to how we recognize new revenue,” said Chief Executive Officer Olivier Pomel in an earnings call on Aug. 6, referring to current customers. 

Shares had almost tripled since going public in September. The stock has nine buys, five holds and no sells.

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