Datadog Inc. shares fell in the extended session Tuesday, following a huge run-up over the year, even as the cloud-monitoring company’s quarterly results and outlook both topped Wall Street estimates.
Datadog DDOG, -2.41% shares dropped 10% after hours, following a 2.4% decline in the regular session to close at $92.60. Datadog shares are up 144% on the year, while the S&P 500 index SPX, -0.14% is up 10%, and the tech-heavy Nasdaq Composite Index COMP, -1.36% is up 29%.
The company reported a third-quarter loss of $15.2 million, or 5 cents a share, compared with a loss of $4.2 million, or 4 cents a share, in the year-ago period.
Adjusted earnings, which exclude stock-based compensation expenses and other items, were 5 cents a share, compared with break-even in the year-ago quarter.
Revenue rose to $154.7 million from $95.9 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of a penny a share on revenue of $144.3 million.
“The pandemic has driven organizations globally and across industries to prioritize their digital operations like never before, further strengthening the cloud’s position as the IT architecture of choice,” said Olivier Pomel, Datadog co-founder and chief executive, in a statement.
Datadog expects adjusted earnings of a penny to 2 cents a share on revenue of $162 million to $164 million in the fourth quarter, and 17 cents to 18 cents a share on revenue of $588 million and $590 million for the year. Analysts forecast a penny a share on revenue of $155.2 million for the quarter, and 12 cents a share on revenue of $571.2 million for the year.