Shares of Datadog (DDOG 1.79%) leaped 12.2% on Thursday after the monitoring platform for cloud applications reported impressive fourth-quarter growth metrics.
Datadog's revenue rocketed 84% year over year to $326.2 million, fueled by strong customer gains. The cybersecurity company had over 2,000 customers set to spend at least $100,000 on its platform annually as of the end of 2021, a 63% increase from the year-ago period.
Moreover, Datadog's operating income improved to $8.5 million, up from a loss of $8.9 million in the prior-year quarter. Its net income, in turn, checked in at $7.2 million, or $0.02 per share, compared to a loss of $16.2 million, or $0.05 per share.
Better still, Datadog's cash generation skyrocketed. Its operating and free cash flow increased 385% and 541%, respectively, to $115.8 million and $106.7 million.
"We are pleased with our fourth-quarter performance, as we demonstrated excellent revenue growth and continued business efficiencies," CEO Olivier Pomel said in a press release.
Due to these solid results and favorable ongoing sales trends, Datadog issued an upbeat financial forecast for fiscal 2022, including:
- Revenue of $1.51 billion to $1.53 billion, representing year-over-year growth of roughly 48%.
- Adjusted operating income of $160 million to $180 million.
- Adjusted earnings per share of $0.45 to $0.51.
Datadog also announced that it acquired collaboration platform CoScreen. The deal will help to strengthen Datadog's real-time communication capabilities.
"Bringing teams together has always been Datadog's core mission," senior vice president Ilan Rabinovitch said in a press release.