By Connor Hart

Shares of Datadog climbed after the company logged higher-than-expected profit and sales in the second quarter, prompting it to raise its outlook for the year.

The stock rose 6.9%, to $146.37, in premarket trading Thursday. Through Wednesday's close, shares have gained 20% over the past year.

The monitoring and security platform for cloud applications before the bell posted a profit of $2.6 million, or 1 cent a share, compared with $43.8 million, or 12 cents a share, a year earlier.

Adjusted per-share earnings were 46 cents, ahead of the 41 cents that analysts polled by FactSet expected.

Revenue jumped 28% to $826.8 million and topped the $791.1 million that Wall Street modeled.

Datadog said it ended the recent quarter with 3,850 customers with annual recurring revenue of over $100,000, marking a 14% increase from last year. The company launched its full range of products and services in Amazon Web Services' Asia-Pacific region during the quarter, expanding beyond its existing operations on the platform in North America, Asia and Europe.

For the third quarter, Datadog guided for adjusted earnings of 44 cents a share to 46 cents a share on revenue of $847 million to $851 million. Analysts were looking for adjusted earnings of 41 cents a share on revenue of $819.8 million.

For the year, the company now expects adjusted earnings between $1.80 a share and $1.83 a share, up from a prior outlook of between $1.67 a share and $1.71 a share. It raised its revenue outlook to a $3.31 billion to $3.32 billion range, from a prior $3.22 billion to $3.24 billion guidance range.

Wall Street analysts forecast adjusted earnings of $1.71 a share on revenue of $3.24 billion for the year.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

August 07, 2025 09:06 ET (13:06 GMT)

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