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Datadog Earnings: What to Watch

By Demitri Kalogeropoulos – Oct 18, 2021 at 6:26PM

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The cloud-services giant has plenty of room to keep expanding its sales footprint.

Datadog (DDOG -8.63%) reports its earnings on Nov. 4, in an announcement that should include head-turning growth metrics.

In this video from "The Five" from Motley Fool Live, recorded on Oct. 12, Fool contributors Brian Withers and Demitri Kalogeropoulos discuss the main factors to watch in the cloud-services giant's upcoming report.

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Brian Withers: For me, it's just Datadog and for no reason other than they're just a player that is really riding the tailwinds of cloud. As more and more companies go to the cloud and have maybe some other business and on-premise and getting other cloud things from potentially multiple cloud providers, Datadog is a great company to provide you insights into all of those information technology operations across your enterprise.

It just gets to a point where companies, I think, need Datadog just to keep tabs on the complexity of companies' information technology infrastructure is just getting more and more with more different sources of where these things can go and demand of employees being able to work from anywhere. IT organizations are stretched to provide reliable, capable, and secure services across our enterprise.

Datadog is a great way to do that and they're continuing to innovate. They added a couple of more new products last quarter. They have some really stellar growth rates that they are targeting. It's a very rich stock from a price-to-sales perspective.

But they have so many things going for them, and it's one of my holdings that I've recently bought that I'm excited about and just want to keep better tabs on the company.

Demitri Kalogeropoulos: Interesting. That's the first I've looked at Datadog. I had no idea it's a $45 billion market cap. That's a big company. It looks like they're supposed to grow earnings over 70% this quarter. That's amazing.

Withers: They are absolutely a high-growth company, and you don't have to know much about them really, but to understand that they're into the observability, which is really going out and looking at your systems and understanding what's going on with them and helping them fend off problems before they become bigger issues.

Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Datadog. The Motley Fool has a disclosure policy.

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