Cloud-based monitoring analytics provider Datadog Inc. is riding high today after beating Wall Street’s targets in its first-quarter earnings.

The company also delivered better-than-expected guidance, sending its stock up 3% in after-hours trading. That followed a nearly 8% rise in the regular session.

The New York-based company reported earnings before certain costs such as stock compensation of 6 cents per share on revenue of $131.2 million in the quarter. Analysts had forecast Datadog to report a loss of a penny a share on revenue of $117.6 million.

Founded in 2010, Datadog sells a monitoring and analytics platform for developers and information technology teams. The platform is especially popular with DevOps and information technology operations team, which use its cloud-hosted tools to monitor their software applications and infrastructure for problems. The company only recently went public, launching its initial public offering in September last year.

The company is one of a number of technology firms that appears to be benefiting from the COVID-19 outbreak, which has forced people from across the world to work from home as much as possible.

“This crisis has demonstrated the need to be digital-first and agile, has underscored the importance of observability into cloud environments, and reaffirmed the long-term opportunity for Datadog,” Datadog Chief Executive Officer Olivier Pomel said in a statement.

Datadog’s importance was further illustrated by its success in picking up new customers. The company said it now counts 960 clients with annual recurring revenue of more than $100,000 at the end of the quarter, up 89% from the same period one year ago.

For the second quarter, Datadog said it’s expecting a loss of a half-cent on revenue of $135 million. Wall Street had forecast a two-cent loss on revenue of $125.5 million.

“The company is benefitting from a greater need to monitor the increasing amount of cloud workloads,” Barclays analyst Raimo Lenschow wrote in a note to clients today. “Overall, there are no signs of a slowdown.”

Image: Datadog