Datadog, Inc ( DDOG )  reported its quarterly results on Tuesday, after which the stock declined.

The software-as-a-service (SaaS) platform’s fiscal first-quarter revenue increased 25% year over year to $761.55 million, beating the analyst consensus estimate of $741.52 million.

Also Read: Datadog Acquires Eppo To Boost Product Analytics And Simplify AI Workflows

Adjusted EPS of 46 cents beat the analyst consensus estimate of 43 cents. 

As of March 31, Datadog ( DDOG ) had 3,770 customers with an ARR of $100,000 or more, an increase of 13% Y/Y. The adjusted gross margin declined by 300 bps to 80%, and the adjusted operating margin decreased by 500 bps to 22%. 

As of March 31, Datadog ( DDOG ) had cash and equivalents of $4.4 billion, generating $244 million in free cash flow.

Outlook: Datadog ( DDOG ) expects second-quarter revenue of $787 million–$791 million above the consensus estimate of $772.13 million. It projects an adjusted EPS of $0.40–$0.42 compared to the analyst consensus of $0.41.

Datadog ( DDOG ) raised its fiscal 2025 revenue outlook to $3.215 billion-$3.235 billion (prior $3.175 billion-$3.195 billion), above the consensus estimate of $3.200 billion. It projects an adjusted EPS of $1.67-$1.71 (prior $1.65–$1.70), below the analyst consensus of $1.75.

Price Action: DDOG stock is down 2.08% at $103.50 premarket at last check Tuesday.

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