Kessler Topaz is investigating potential claims on behalf of purchasers of Datadog, Inc. (NASDAQ: DDOG) securities between May 4, 2023 and August 7, 2023, related to potential violations of securities laws.
On May 4, 2023, Datadog announced financial results for its first-quarter ended March 31, 2023. In the results, Datadog’s CEO indicated "we are pleased with our execution in the first quarter, with 33% year-over-year revenue growth, continued customer growth, and increased multi-product adoption by our customers." Additionally, in discussing guidance for Q2 and FY 2023, Datadog stated the company is “super optimistic about what we hear from customers, and we see great traction with pretty much everything we do there, which means digital information and cloud migrations are alive and well and consolidation is also alive and well and is working in our favor.” Datadog stated that the company expected revenue to be in the range of $2.08 billion to $2.10 billion for the FY 2023.
Then on August 7, 2023, Datadog announced guidance for the full-year 2023 and revealed that the company would be significantly cutting its revenue guidance for the rest of 2023, now anticipating lower revenue between $2.05 billion and $2.06 billion.
Following this news, the price of Datadog’s stock fell over 20%, to close at $88.04 on August 8, 2023.
If you have any questions or would like to discuss this investigation, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.