Datadog forecasts revenue results below market estimates on weak adoption

Datadog forecast full-year revenue and profit below Wall Street estimates on Tuesday, expecting a weak demand and rising competition in the cybersecurity industry, sending its shares down 2% in premarket trading.
 

The cloud monitoring firm, with Nasdaq and Comcast as its customers, sees slower usage growth as customers are cutting back on spending in an uncertain economy despite the need for robust cybersecurity solutions.
 

Growing competition in the sector from bigger rivals such as SentinelOne and CrowdStrike is also weighing in on smaller players like Datadog.
 

The company expects full-year adjusted profit per share in the range of $1.38 to $1.44, which is below analysts' average expectation of $1.83, according to LSEG data.
 

The full-year revenue forecast is in the range of $2.555 billion and $2.575 billion, slightly below analysts' estimates of $2.59 billion.

However, the firm expects the first-quarter revenue to be in the range of $587 million and $591 million, compared with estimates of $585.9 million.
 

The revenue for the current quarter stood at $589.6 million, which is also above estimates.