American cloud-scale application monitoring service Datadog Inc. (DDOG) experienced a decline in stock prices after releasing its results for the latest financial quarter. The company’s shares diminished in value by 10% after hours, following a 2.4% decline during the regular session to reach a value of $92.60.
Datadog incurred a Q3 loss of $15.2 million, translating to 5 cents per share. During the same time last year, the company suffered a $4.2 million loss at 4 cents per share. Contrary to its recent results, however, Datadog shares have enjoyed an all-year growth of 144%.
Contrary to its increasing financial losses, Datadog’s revenue rose to $154.7 million from $95.9 million during the same quarter last year.
Datadog co-founder and chief executive Olivier Pomel explained in a statement that cloud computing has been strengthened since the start of the COVID-19 pandemic, as organizations across the globe have become more reliant on their digital capabilities to conduct business. He also described the cloud as being “the IT architecture of choice”.
In the fourth quarter, Datadog’s expected revenue is $162 million, with adjusted earnings of up to 2 cents a share. Its year-end revenue is projected to be between $588 million and $590 million.
