What happened

Shares of monitoring and analytics platform provider Datadog (DDOG 3.58%) jumped sharply on Friday. The stock rose as much as 11.8%. As of 10:45 a.m. EDT today, however, shares had settled to an 8.9% gain.

The growth stock's gain followed the company's strong first-quarter results, which were reported after market close on Thursday.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Datadog announced that its first-quarter revenue grew 51% year over year to $199 million. Analysts on average were expecting revenue of $187 million. Adjusted earnings per share were $0.06, beating a consensus analyst forecast for $0.03.

"Businesses are planning for a post-pandemic world," CEO Olivier Pomel said in the company's first-quarter earnings release, adding: "Digital transformation projects are being prioritized, as the need to be digital-first and agile is more prominent than ever. We believe we are in a strong position to benefit from this trend as the most complete and cloud-native end-to-end observability platform."

Now what

Looking to the second quarter, the company said it expects revenue to be between $211 million and $213 million. Analysts on average were expecting second-quarter revenue of $196.5 million.

For the full year, management guided for revenue between $880 million and $890 million, up from $604 million in 2020.