Datadog (DDOG) Q3 Earnings Decline Expected: Are You A Believer?

in EARNINGS/INVESTING IDEAS by

Since the Datadog’s IPO in September, the company’s stock price has mostly trended downward. The company does however have a strong cloud-based business model and competitive pricing which has helped it grow exponentially and acquire more than 8,000 customers and with revenues exceeding $250 million over the trailing twelve months.

Datadog Financials

Datadog, Inc. (NASDAQGS:DDOG) is scheduled to report Q3 earnings results on November 12, 2019. The company is expected to report earnings of -$0.14/share on revenue of $84.750 million. The consensus earnings per share (EPS) of -$0.14/share is based on a poll of 12 analysts while the revenue forecast of $84.750 million is based on a poll of 10 analysts.

This will be Datadog’s first earnings call after the IPO so the key numbers analysts will be watching for is revenue and revenue guidance.

Fundamentals And Technical Analysis

Datadog is currently trading at $34.49/share, up 2.8% for the day. The company is trading at approximately 83% of its 52 week high of $41.44/share. The company is not yet profitable so the current share price implies a price-to-earnings (P/E) multiple of -389.8x and a forward P/E multiple of -243.6x.

Datadog’s current share price also implies a price-to-book (P/B) multiple of -121.5x. The following table summarizes some other key fundamental ratios:

Data as of November 11, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $33.55
P/E Ratio -389.8x
P/E Ratio (Fwd) -243.6x
PEG Ratio -16.2
Total Debt to Capital (%) 0.5%
Levered Free Cash Flow -$4.919 million
Enterprise Value / EBITDA -585.9x

Company Profile: Datadog, Inc.

Datadog, Inc. is a mid-cap stock with a market capitalization of $9.845 billion and a total enterprise value of $9.982 billion. The company operates in the Information Technology sector and Software industry.

Datadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, and log management to provide real-time observability of customers technology stack. The company was founded in 2010 and is headquartered in New York, New York.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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