Datadog (NASDAQ:DDOG) shares soared 7.15% in pre-market trading on Tuesday, as investors eagerly await the company's first-quarter earnings report and digest news of a strategic acquisition. The New York-based cloud monitoring and analytics platform is set to release its financial results before the opening bell.

Analysts expect Datadog to report quarterly earnings of 43 cents per share, slightly down from 44 cents per share in the year-ago period. However, revenue is projected to climb to $741.4 million, up from $611.25 million a year earlier, signaling continued growth for the company. The market's positive reaction suggests optimism about Datadog's performance and future prospects.

Adding to the excitement, Datadog announced on Monday that it has acquired Eppo, a platform specializing in feature flagging and experimentation. This strategic move is expected to enhance Datadog's Product Analytics suite and streamline the development process for its customers. While financial terms were not disclosed, the acquisition appears to have bolstered investor confidence in Datadog's growth strategy and ability to expand its offerings in the competitive cloud monitoring space.