Feb 13 (Reuters) - Datadog DDOG.O forecast 2025 revenue and profit below Wall Street expectations on Thursday, hurt by sluggish customer spending on its cloud security services as enterprises cut budgets owing to economic uncertainty.
Shares of the New York-based company fell 10% in premarket trading.
Tough competition and high interest rates have weakened demand for Datadog's data monitoring services as enterprise customers rethink their spending priorities.
The cloud monitoring platform faces competition from firms such as Dynatrace DT.N, which is trying to unify its security and data management platforms using artificial intelligence, making it easier for customers to find technical issues and breaches within their software.
Datadog forecast revenue between $3.18 billion and $3.20 billion for its fiscal 2025, compared with analysts' average estimate of $3.24 billion, according to data compiled by LSEG.
It forecast annual adjusted earnings per share between $1.65 and $1.70, while analysts expect $2.05.
First-quarter revenue forecast of $737 million and $741 million was also largely below the analyst estimate of $740.3 million.
It expects quarterly adjusted EPS between 41 cents and 43 cents per share, below estimates of 46 cents.
Revenue for the fourth quarter came in at $737.7 million, beating market expectations of $714.5 million.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo and Shinjini Ganguli)
((Zaheer.Kachwala@thomsonreuters.com;))
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