10:37 AM EDT, 05/07/2024 (MT Newswires) -- Datadog ( DDOG ) lifted its full-year outlook on Tuesday after recording better-than-expected first-quarter results, while the software maker announced that President Amit Agarwal will step down.

Agarwal will remain in the role until the end of the year, according to the company, which did not name a successor. Agarwal is expected to join the board following his departure. The stock tumbled 10% in Tuesday's trading session.

"Amit wanted to stop working as a full-time operator, but wants to stay close to the company and we want to stay close to him, too," Chief Executive Olivier Pomel said on an earnings call, according to a Capital IQ transcript.

Datadog ( DDOG ) now anticipates adjusted earnings to come in between $1.51 and $1.57 per share for the 2024 financial year, up from its prior guidance of $1.38 to $1.44. Revenue is pegged at $2.59 billion to $2.61 billion versus previous projections of $2.56 billion to $2.58 billion. The consensus on Capital IQ is for normalized EPS of $1.66 and revenue of $2.61 billion.

"Our guidance philosophy remains unchanged," Chief Financial Officer David Obstler said on the call. "We based our guidance on trends observed in recent months and apply conservatism on these growth trends."

For the March quarter, the company's adjusted EPS rose to $0.44 from $0.23, topping the Street's view for $0.34. Revenue jumped 27% to $611.3 million, surpassing analysts' $591.7 million estimate.

Billings climbed 21% to $618 million, while billings duration increased year-on-year, Obstler said on the call. On a sequential basis, billings growth was "seasonally lower" like the prior-year quarter. Remaining performance obligations, or RPO, advanced annually but were down quarter-over-quarter, as the company saw fewer multi-year deals sequentially, according to Obstler.

"We are continuing to see an increasing interest with our larger customers in multiyear commitments, which results in longer RPO duration in both total and current RPO," Obstler told analysts. "Our RPO has been and continues to be lumpy, an effect that may be amplified as our customers move towards multiyear deals."

For the ongoing three-month period, Datadog ( DDOG ) forecasts per-share adjusted earnings to be in a range of $0.34 to $0.36 and revenue to be between $620 million and $624 million. The Street is looking for normalized EPS of $0.35 on revenue of $620.3 million.

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