Friday’s Headlines: Datadog Soars 15%
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Datadog (DDOG) +15.3%
MercadoLibre (MELI) +13.8%
Wynn Resorts (WYNN) +8.3%
Booking Holdings (BKNG) +5.9%
Moving Down ⬇️
Lemonade (LMND) -11.4%
Etsy (ETSY) -9.7%
Wix (WIX) -6.9%
Roku Inc. (ROKU) -4.0%
The Trade Desk (TTD) -3.5%
1. Shares of SaaS firm Datadog (DDOG) soared 15% on Thursday after Q2 profit and revenue topped estimates, buoyed by growth in large customer accounts. The New York-based company reported adjusted earnings per share of $0.09 on revenue of $233.5 million, up 67% year-over-year (YoY), while customers with annual recurring revenue (ARR) of more than $100,000 soared from 1,015 last year to 1,610 at the end of Q2 2021. With its full-year 2021 forecast coming in strong at the halfway point, CEO Olivier Pomel was more than optimistic about the company’s long-term outlook, citing a host of new products and Datadog’s role as a trusted cloud migration partner as catalysts for further growth. Read the official earnings release here.
2. Just 24 hours before its Q2 earnings later today, DraftKings (DKNG) announced that it has partnered up with sports data specialists Genius Sports (GENI). The deal provides DraftKings with exclusive sportsbook data around the NFL, including live video feeds from over 170,000 sporting events per year and fan retention services like marketing tech to lure customers. DraftKings Chief Business Officer Ezra Kucharz called the partnership “mutually beneficial,” adding in a statement that aligning with Genius will allow the company to “expand on the capabilities of our products and provide new and exciting features for our customers like single-game parlays.” Read the official press release here.
3. In a bid to fight climate change, President Joe Biden signed an executive order on Thursday, setting a target for zero-emissions vehicles to account for half of all automobiles sold in the U.S. by 2030. The goals of both Biden and the automakers include battery, electric, fuel cell, and plug-in hybrid vehicles that also have a gasoline engine. While Ford (F), GM (GM), and Chrysler parent Stellantis NV (STLA) all corroborated with the bill, the king of EVs, Tesla (TSLA), was notably absent. Though not legally binding, the order will encourage compliance with these targets as well as fresh subsidies for automakers, though it could mean an increase in competition for the likes of Tesla from industry stalwarts. Read more here.
Some more earnings from last night:
It was an excellent three months for one of MyWallSt’s more recent additions, as Avalara saw revenue growth of 45% YoY to $169.1 million, with a diluted net loss per share of $0.13. CEO Scott McFarlane was pleased with the results, citing the accelerated growth of cloud-based solutions due to COVID-19 as a leading catalyst for growth. Read more here.
The U.S. enterprise software firm added 116 net new customers in the second quarter for a total of 3,598, helping net revenue to rise 23% YoY to $102.1 million. Marc Huffman, CEO, commented, “We delivered an outstanding second quarter with strong performances across the business. Our results continue to build on our market leadership and the momentum we’re experiencing from organizations prioritizing digital finance transformation.” Read more here.
Sometimes it’s not so much about beating expectations as it is by how much. This appears to be the case with Cloudflare, which has split investor opinions with a quarterly loss of $0.02 per share on revenue of $152.43 million. Given the rise in popularity of cloud stocks over the past year, investors may have been hoping for a surprise GAAP profit, thus explaining the post-earnings dip. Read more here.
Tex-Mex is in hot demand it seems after Chuy’s reported a revenue increase of 65% YoY to $108.2 million, with net income rising 156% to $11.5 million, or $0.57 per share. CEO Steve Hislop cited a return to pre-pandemic dining conditions as one of the key factors behind Chuy’s Q2 success and anticipates further improvements as vaccinations continue to roll out. Read more here.
The machine vision systems manufacturer was in flying form in Q2, marking its highest-ever revenue haul for a single quarter at $269 million, with net income of $77.6 million. Despite these results, CEO Robert Willett cautioned that growth will be moderate in the second half of the year due to the substantial increase in revenue it reported last year from the consumer electronics industry. Read more here.
It was all smiles from the self-service ticketing firm after it reported a five-fold increase in revenue YoY to $46.3 million, with paid ticket volume up 57% from Q1 2021, led by a resurgence of in-person events. “Our strong financial results reflect the demand for live gathering, as well as the benefits of our strategic focus and increased operating leverage,” said Julia Hartz, Eventbrite co-founder and Chief Executive Officer. Read more here.
GoPro’s recovery continued in Q2 as revenue increased 86% to $250 million, with GAAP net income rising to $17 million, or $0.10 per share, compared to a GAAP net loss of $51 million or $0.34 per share in the same period last year. The company was optimistic, stating: “In Q2, strong execution further revealed the benefits of the strategic shifts we’ve made in our business to a more direct-to-consumer, subscription-centric model. We believe the changes to our business will continue to result in a more predictable and profitable GoPro.” Read more here.
While not the most exciting of businesses, the land developer reported second-quarter net income of $4.8 million, or $0.09 per share, after reporting a loss in the same period a year earlier, with revenue rising to $212.5 million. CEO David O’Reilly was optimistic: “All of our business segments have now either surpassed or are closely approaching pre-pandemic levels, which is a testament to our dedicated employees, irreplaceable assets and highly sought-after communities.” Read more here.
Despite the ongoing impact of the COVID-19 pandemic, Monster Energy achieved record second-quarter net sales of $1.46 billion, up 33.6% YoY, with earnings per share of $0.75. Chairman Rodney Sacks stated: “In the second quarter of 2021, we continued to secure distribution in both our domestic and international markets for our products, including our new products introduced earlier this year. We are planning for additional launches during the second half of 2021.” Read more here.
Despite volatility in the housing market this year, the iBuying specialist beat estimates with revenue growing 121% YoY to $471 million, but its net loss grew to $27.9 million from a loss of $6.6 million a year ago. Much of these costs were attributed to expanded marketing efforts and Redfin buying 40% more homes in Q2 than they did in all of 2020. Read more here.
It was a slow quarter for the digital vehicle marketplace as revenue rose just 1% YoY to $65.8 million, while losses narrowed to $7.1 million, or $0.07 per share. However, due to the heightened level of uncertainty, especially around the industry implications resulting from inventory shortages, the company did not provide formal guidance for the third quarter. Read more here.
Our furry friends are being increasingly cared for it seems, as the pet insurance leader unveiled a 43% revenue increase YoY to $168.3 million, thanks to a 22% jump in enrolled pets to 643,395. “Q2 was another great quarter with net pet growth up 60% year-over-year, led by exceptionally strong retention rates,” said Darryl Rawlings, Founder and CEO of Trupanion. Read more here.
The second iBuying specialist on our list, Zillow blew expectations away with second-quarter earnings of $10 million, on revenue of $1.31 billion, up from sales of $768 million in the same quarter a year ago. Traffic to Zillow Group's mobile apps and websites in the second quarter reached 229 million average monthly unique users, an increase of 5% year over year, driving 2.8 billion visits during the quarter, up 10% year over year. Read more here.
There are 2 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.