Datadog Inc. (NASDAQ:DDOG) shares climbed in premarket trading Thursday after the cloud monitoring and security company reported first-quarter results that topped Wall Street expectations, driven by rising demand for artificial intelligence-enabled cloud security products.

Datadog Revenue and Earnings Beat Wall Street Estimates

The software-as-a-service company posted first-quarter revenue of $1.006 billion, up 32% from a year earlier and ahead of analyst estimates of $961.31 million. Adjusted earnings came in at 60 cents per share, beating consensus estimates of 51 cents.

Datadog said it ended the quarter with 4,550 customers generating at least $100,000 in annual recurring revenue, representing a 21% increase from the prior year.

Margins Remain Strong Amid Growth

Adjusted gross margin held steady at 80%, while ...