Datadog Inc DDOG Shares traded lower on Thursday after the company reported strong fourth-quarter results but issued guidance below analyst estimates.

What happened: Fourth-quarter revenue rose 44% year over year to $469.4 million, according to data from Datadog, beating the median analyst estimate of $449.31 million Gasoline Pro.

The cloud-native data company reported fourth-quarter earnings of 26 cents per share, beating consensus estimates of 19 cents per share.

“We are pleased with our performance in the fourth quarter as we offered more value to more customers through our expanding platform while driving strong profitability and cash generation,” said Oliver PomelCo-founder and CEO of Datadog.

“At a time when efficiencies, cost savings and agility are more important than ever for our customers, we look forward to delivering even more innovation and business value to our customers in 2023,” added Pomel.

Datadog sees First quarter revenue in a range of $466 million to $470 million versus estimates of $482.04 million. The company expects adjusted earnings of between 22 cents and 24 cents per share for the first quarter versus estimates of 24 cents per share.

Datadog projects full-year revenue in a range of $2.07 billion to $2.09 billion versus estimates of $2.19 billion. The company expects full-year adjusted earnings to be between $1.02 and $1.09 per share versus estimates of $1.15 per share.

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DDOG Price Action: Datadog has traded between $175.89 and $61.34 over a 52-week period.

The stock is down 7.08% at $82.44 at the time of writing Gasoline Pro.

Photo: courtesy of Datadog.