Shares of Datadog (NASDAQ: DDOG) sank on Friday after the company reported fourth-quarter results that beat analyst expectations. The guidance may be the culprit: Datadog is expecting revenue growth to slow substantially in 2021. Shares of the cloud monitoring and security company were down about 3.6% at 11:20 a.m. EST; they had been down as much as 8.2% earlier in the day.
Datadog reported fourth-quarter revenue of $177.5 million, up 56% year over year and about $14 million ahead of analyst expectations. Adjusted earnings per share of $0.06 doubled from the prior-year period and were $0.04 higher than the average analyst estimate.