Datadog Q4 Revenue Guidance Causes Stock Drop

• Datadog reported a 35% increase in Q3 revenue to about $1.2 billion.
• The company guided for Q4 revenue to be roughly the same as Q3.
• Shares fell about 12% in pre-market trading following the guidance.
• The stock reaction suggests the market focused more on the revenue outlook than the strong Q3 performance.
• Operating costs grew slower than revenue, resulting in profit gains.