Datadog President Amit Agarwal will step down and join the company's board of directors at the end of 2024, the cybersecurity company said on Tuesday, sending its shares down nearly 9% in early trading.
Before joining Datadog in 2012, Agarwal held project management roles at Quest Software, now Dell, and at IBM.
The company also expects second-quarter revenue to exceed Wall Street estimates, anticipating a surge in demand for its cybersecurity solutions due to rising cyber threats.
Increasing online threats, ransomware attacks and hacking have fueled the demand for cybersecurity solutions with artificial intelligence.
Companies migrating their workloads to the cloud have also driven usage growth for Datadog, which counts Peloton and Samsung Electronics among its more than 3,000 customers.
The company handles cloud migration and provides cloud security management services.
It forecast second-quarter revenue between $620 million and $624 million, with the midpoint above analyst estimates of $620.6 million, according to LSEG data.
The company expects second-quarter adjusted earnings of between 34 and 36 cents per share. Analysts had expected an adjusted profit of 35 cents.
Revenue for the quarter ended March 31 was $611 million, compared with expectations of $591.3 million.
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