(Reuters) – Datadog President Amit Agarwal will step down by the end of 2024 and join the company’s board of directors, the cybersecurity firm said on Tuesday, sending its shares down nearly 9% in early trading.
Before joining Datadog in 2012, Agarwal held project management roles in Quest Software, now Dell, as well as IBM.
The company also forecast second-quarter revenue above Wall Street estimates, anticipating a surge in demand for its cybersecurity solutions in the wake of rising cyber threats.
Growing online threats, ransomware attacks and hacking have fueled demand for artificial intelligence-infused cybersecurity solutions.
Businesses 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 in the range of $620 million to $624 million, with the mid-point above analysts’ estimates of $620.6 million, according to LSEG data.
The company expects a second-quarter adjusted profit of between 34 and 36 cents per share. Analysts were estimating an adjusted profit of 35 cents.
Revenue for the quarter ended March 31 stood at $611 million, compared with expectations of $591.3 million.
(Reporting by Priyanka.G in Bengaluru; Editing by Devika Syamnath)
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