Datadog cofounders Alexis Lê-Quôc and Olivier Pomel. Courtesy of Datadog
The booming market for hot tech stocks minted two new billionaires from the same company on Tuesday. On a day when the main U.S. stock indexes fell, shares of cloud monitoring service Datadog bucked the trend, skyrocketing up 23% to an all-time high. As a result, CEO Olivier Pomel and President Alexis Lê-Quôc are now both billionaires, worth $1.6 billion each.
The spike in Datadog’s stock followed a first-quarter earnings release on Monday after the market close that beat analyst expectations. New York City-based Datadog, which offers a cloud analytics platform for customers that include Cornell University, Samsung and Whole Foods, reported revenue for the first quarter of $131.2 million, up 87% from a year ago and more than 10% above average analyst estimates. The company’s 6 cents per share earnings also beat Wall Street expectations, which were forecasting a loss of 2 cents a share.
“We are very pleased with our first-quarter performance,” Pomel said during an earnings conference call. “This crisis [the COVID-19 pandemic] has demonstrated the need to be digital-first and agile, underscored the importance of observability into cloud environment, and reaffirmed the long-term opportunity for Datadog.”
Datadog listed on the Nasdaq exchange in September 2019, raising nearly $650 million and nabbing a $10.9 billion market cap on its first day of trading. Analysts have remained bullish on the stock, and its shares traded around IPO levels until earlier this month, when stocks of cloud-computing providers like Slack, Twilio and Datadog ticked up, as working remotely looked to be more of a long-term solution. Datadog shares are now up more than 80% since their public market debut. Over the same period, the S&P 500 has fallen 5%.
On the earnings call, Pomel said Datadog has seen business grow in the two months since the pandemic knocked stocks lower. The company said it ended the last quarter with 11,500 customers.
Pomel and Lê-Quôc, who also serves as the company’s chief technology officer, cofounded Datadog in 2010 in New York City; today they each own about 6% of Datadog shares. The two men, French natives who met as undergraduates at the École Centrale Paris, previously worked at Wireless Generation, another New York software-as-a-service company that was acquired by News Corp in 2010. At Wireless Generation, Pomel built data systems for K–12 teachers, and Lê-Quôc served as the director of operations.
“I would say it’s too early to tell where everything nets up,” Pomel said on the earnings call Monday. “But so far from what we can see, we see a lot more reliance on online [usage]. We see, actually, a success story around the cloud. The cloud scaled up.”
Author: Jonathan Ponciano / Forbes Staff Billionaires