The stock's sharp gain was due to the company's strong second-quarter results, which were reported before market open on Thursday.
Datadog's revenue surged 67% year over year to $233.5 million. Non-GAAP (adjusted) earnings per share increased from $0.05 in the year-ago period to $0.09. Both of these figures easily surpassed analysts' average estimates for revenue of $212.5 million and adjusted earnings per share of $0.03.
"We saw broad-based strength across customer segments and products," said Datadog CEO Olivier Pomel in the company's earnings release. "Our high growth at scale demonstrates that we continue to be a trusted partner in our customers' digital transformation and cloud migration journeys."
Management's bullish outlook for the full year may be helping the stock as well on Thursday. The company lifted its full-year view for revenue and non-GAAP earnings per share significantly.
Datadog now expects 2021 revenue between $938 million and $944 million, up from a previous forecast for revenue between $880 million and $890 million. Further, management lifted its view for adjusted earnings per share from a range of $0.13 to $0.16 to expectation for the key profitability metric to be between $0.26 and $0.28.