12:46 PM EDT, 08/09/2024 (MT Newswires) -- Datadog ( DDOG ) should be able to continue its "beat-and-raise" pattern during H2 even after raising its guidance following Q2 earnings, RBC Capital Markets said in a note emailed Friday.

Datadog's ( DDOG ) Q2 adjusted earnings of $0.43 and revenue of $645.3 million beat estimates of $0.36 and $625.1 million, respectively.

The company also raised its fiscal 2024 adjusted earnings guidance to $1.62 to $1.66 per share on revenue ranging between $2.62 billion and $2.63 billion. Analysts polled by Capital IQ expect normalized earnings of $1.56 per share on revenue of $2.61 billion.

RBC Capital Markets said the raise "still remains reasonable" and "conservative" and indicated there might be an upside to Datadog's ( DDOG ) earnings as usage of the company's platform among its largest customers had accelerated over the last several quarters while also growing among smaller ones.

"Overall, customers continue to consolidate more of their business and insights onto the platform as growth was healthy across products, with newer products growing faster off the smaller base," RBC wrote.

The firm reiterated its outperform rating on the stock with a price target of $151.

Datadog ( DDOG ) shares were down 2.3% intraday.

Price: 111.35, Change: -2.71, Percent Change: -2.38