Shares in the data analytics and monitoring company Datadog Inc. gained more than 14% late today on the back of soaring revenue growth.

The company reported a second-quarter profit before certain costs such as stock compensation of 9 cents per share on revenue that surged 67% from a year ago, to $233.5 million.

That helped ensure the company surpassed Wall Street’s expectations, with analysts looking for earnings of just 3 cents per share on revenue of $212.1 million.

Datadog sells an application monitoring and analytics platform that’s used by developers and information technology teams to assess the health of their apps and the infrastructure they run on. The platform is especially popular with DevOps teams that build modern, cloud-native apps.

Datadog co-founder and Chief Executive Olivier Pomel (pictured) stated the obvious, saying the company had a “strong second quarter” thanks to broad-based strength across customer segments and products.

“Our high growth at scale demonstrates that we continue to be a trusted partner in our customers’ digital transformation and cloud migration journeys,” he said. “We continue to expand the features and functionality of our cloud native end-to-end observability platform. Meanwhile, we are just getting started on our journey to break down silos between DevOps and Security teams with our Cloud Security Platform.”

Datadog’s impressive results follow a strong showing from cloud computing players in general, with public cloud services leaders such as Amazon Web Services Inc., Microsoft Corp. and Alphabet Inc. all showing strength in recent weeks.

The company impressed in terms of customer growth too, especially larger contracts. It said its total number of customers with annual recurring revenue of $100,000 or more hit 1,610 at the end of the quarter, up 59% from the same period a year ago.

During the quarter, Datadog had a major product announcement with the general availability of its Datadog Cloud Security Platform, which added full-stack security context to its existing observability tools.

Holger Mueller, an analyst with Constellation Research Inc., told SiliconANGLE that with cloud adoption comes a need for better ways to mange systems and workloads, and this is what Datadog provides, hence it is growing fast. “Even for a hot space like cloud, Datadog’s 67% revenue growth is remarkable though, so the company deserves congratulations,” he added.

Still, Mueller raised concerns over Datadog’s profitability, noting the company was in the black last year, only to swing to a moderate loss this time around. “What Datadog’s management need to learn is better cost management, and that’s what investors will want to see,” he said. “Not just delivering on expectations, but managing them well too.”

The company’s strong guidance for the next quarter was the icing on the cake. Datadog said it’s expecting earnings in a narrow range of between 5  to 6 cents per share. In terms of sales, it said it’s looking at revenue of $246 million to$248 million.

Wall Street had called for third-quarter earnings of just 3 cents per share on revenue of $226.1 million.

Datadog raised its full-year guidance too, and now expects a profit of 26  to 28 cents per share on revenue of between $938 million and $944 million.

Photo: SiliconANGLE