What happened

Shares of Datadog (NASDAQ:DDOG) jumped on Wednesday after the data analytics company reported its third-quarter results. Datadog beat analyst estimates across the board, and it provided guidance that was ahead of expectations. The stock was up about 16.1% at 11:45 a.m. EST.

So what

Datadog reported third-quarter revenue of $95.9 million, up 88% year over year and $11.2 million above the average analyst estimate. The company now has 727 customers with an annualized revenue run rate of at least $100,000, up 93% year over year.

A rising stock chart.

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Non-GAAP (adjusted) earnings per share came in at $0.00, up from a loss of $0.04 in the prior-year period and $0.14 higher than analysts were expecting. Datadog lost $0.04 per share on a GAAP basis.

"We believe we are still in the early innings of a very large market opportunity, and we remain focused on solving our customers' pain points," said Datadog CEO Olivier Pomel.

Now what

Datadog expects to produce fourth-quarter revenue between $101 million and $103 million and full-year revenue between $350 million and $352 million. Both ranges are above analyst expectations of $92.3 million and $330.2 million, respectively.

The company expects to report an adjusted net loss between $0.01 and $0.02 per share in the fourth quarter and a loss between $0.11 and $0.12 per share for the full year. Analysts were expecting a fourth-quarter loss of $0.05 per share and a full-year loss of $0.30 per share.

Including Wednesday's rally, Datadog is now valued at about $11.8 billion, or 33 times the midpoint of the company's full-year revenue guidance. Datadog will need to keep up its impressive growth rate to justify such a lofty valuation.