May 6 (Reuters) - Cloud security firm Datadog ( DDOG )

raised its annual revenue forecast and beat the estimate for

quarterly sales on Tuesday, thanks to growth in large customers

and AI-driven workloads.

The company has benefited significantly from the increased

adoption of artificial intelligence technologies, which has

driven strong demand for its cloud monitoring and security

platform.

On Monday, Datadog ( DDOG ) acquired Eppo, a feature flagging and

experimentation platform, to expand its AI and product analytics

offerings, aiming to help customers build products faster and

with less risk.

"We are innovating rapidly across the Datadog ( DDOG ) platform, to

help customers observe, secure, and act to solve

mission-critical business problems in their modern, cloud

environments," CEO Olivier Pomel said.

Datadog's ( DDOG ) newer products, such as App Builder and On-Call,

are outperforming, and its security monitoring is seeing

significant customer interest, analysts have said.

The company now expects full-year 2025 revenue to be between

$3.22 billion and $3.24 billion, compared with its prior

forecast of between $3.18 billion and $3.20 billion. Analysts on

average expect $3.20 billion in annual revenue, according to

data compiled by LSEG.

It also forecast second-quarter revenue above estimates.

Total revenue in the first quarter was up 25% from a year

earlier to $761.6 million, compared with analysts' estimate of

$741.5 million.

On an adjusted basis, the company earned 46 cents per share

compared with the estimate of 43 cents per share.

At the end of the first quarter, Datadog ( DDOG ) had about 3,770

customers with annual recurring revenue of $100,000 or more, an

increase of 13% from a year earlier.