Datadog‘s stock recently dropped after the data visualization company posted its third-quarter earnings. Its revenue rose 61% year over year to $155 million, beating estimates by $10 million. Its adjusted net income surged from $783,000 to $16 million, or $0.05 per share, which also beat estimates by a nickel.
Datadog expects its revenue to rise 62%-63% for the full year, compared to expectations for 57% growth, with adjusted earnings of $0.17-$0.18 per share — which was well above the consensus forecast of $0.12 per share.
Those numbers were impressive, but investors seemed concerned about two things: The company’s revenue growth had gradually decelerated from its 83% growth rate in 2019, and the stock looked frothy at 44 times this year’s sales.
By comparison, Datadog’s peer New Relic trades at just five times this year’s sales. Those concerns are valid, but I believe Datadog remains a much better “silo-busting” play than New Relic
What do Datadog and New Relic do?
Large companies usually host their data across a wide range of software, cloud services, and apps. Keeping track of all that data can be challenging, so Datadog and New Relic both break down the silos and pull the information onto unified dashboards.
https://www.fool.com/investing/2020/11/17/forget-new-relic-datadog-is-a-better-silo-busting/
