Delaware, New-York – Datadog, a software and cybersecurity solutions provider, exceeded expectations for its third-quarter results and raised its forecast for annual adjusted profit and revenue. The company is benefiting from the growing demand for enhanced security measures in the face of increasing cybersecurity threats.

Major companies such as MGM Resorts and Clorox have fallen victim to security breaches, prompting businesses and governments to seek reliable solutions from providers like Datadog. Recognizing the urgency for bolstered security, the Delaware-based company has seen a surge in demand.

Datadog anticipates annual adjusted profit to fall between $1.52 and $1.54 per share, surpassing its previous outlook of $1.30 to $1.34. These figures outperform analysts' expectations of $1.33 per share, according to LSEG data. Additionally, the company raised its full-year revenue forecast from $2.05 billion to $2.06 billion to a range of $2.10 billion to $2.11 billion.

Experts believe that Datadog's offerings in the development operations software space, with a focus on cybersecurity and artificial intelligence, will position the company favorably amid increasing demand.

In the third quarter, Datadog recorded revenue of $548 million, exceeding estimates of $524.1 million. The company also exceeded expectations for quarterly adjusted profit, reporting 45 cents per share.

Highlighting the criticality of cybersecurity, major internet companies like Google, Amazon, and Cloudflare recently reported the largest-known denial-of-service attack. This incident puts businesses at great risk and emphasizes the need to update web servers promptly to minimize vulnerabilities.

As of September 30, Datadog's customer base expanded by 20% to reach 3,130, with an annual recurring revenue of $100,000 or more.

To cater to the growing cybersecurity concerns, Datadog's upward revision of its forecast demonstrates its commitment to addressing the evolving needs of customers. With a solid financial performance and increased demand for its services, Datadog is positioned strongly in the software and cybersecurity market.