Shares of monitoring and analytics platform specialist Datadog (DDOG -0.62%) tumbled on Friday, falling about 14% as of 12:15 p.m. EDT.
The growth stock's decline follows Datadog's second-quarter earnings release. While the company's second-quarter results were better than analysts were expecting, they weren't impressive enough to prevent some profit-taking on the stock after a huge run-up recently.
Datadog reported second-quarter revenue of $140 million, up 68% year over year. The company's non-GAAP (adjusted) earnings per share was $0.05, compared to an adjusted loss per share of $0.07 in the year-ago period.
Analysts, on average, were expecting revenue of $135.4 million and adjusted earnings per share of $0.01.
"Our growth at scale amid the global pandemic demonstrates Datadog's importance in enabling the digital operations of our customers," said Datadog co-founder and CEO Olivier Pomel in the company's second-quarter earnings release.
Despite how impressive these results seem on the surface, they apparently weren't enough to live up to the 150% rise the stock saw between the beginning of the year and the company's earnings report. Some investors appear to be taking some profits following the stock's massive rise.
Looking ahead, Datadog said it expects full-year revenue to be between $566 million and $572 million. Analysts were expecting revenue of $564 million.
"While the current macro environment has caused business pressures for our customers, we expect it to accelerate digital transformation and cloud migration over the long-term," Pomel said. "Datadog is very well positioned to be a primary beneficiary of these trends."