Datadog: Solid Upside Through Enterprise Product-Market Fit

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About: Datadog, Inc. (DDOG)
by: Tech and Growth
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Tech and Growth
Tech, software, internet, IPOs
Summary

Datadog maintains strong performance in Q3, with 88% YoY revenue growth and raised guidance for Q4 and the full-year.

Strong momentum gained in enterprise and mid-market segments combined with the new Security Monitoring product will drive further outperformance in the near to medium term.

Having beaten its Q3 revenue guidance by ~9%, we expect a momentum continuation in Q4. We set a price target of ~$41.73 per share by the end of FY 2019.

Overview

Datadog (DDOG) continues its strong performance post its recent IPO in September 2019. In the Q3 earnings call, the company provided a significantly raised outlook for both Q4 and full-year guidance. Datadog