Datadog shares fell 14% following a cautious outlook linked to a single large AI customer. For the third quarter ending September 30, the company reported revenue of $1.20 billion and adjusted earnings of 81 cents per share, exceeding analyst expectations. Datadog now serves over 850 AI companies and raised its full-year revenue guidance to a range of $4.515 billion to $4.525 billion.
Rapid7 shares rose 18% in after-hours trading despite a 2.5% year-over-year revenue decline to $212.4 million. The company reported adjusted earnings of 60 cents per share for the third quarter. Rapid7 increased its full-year adjusted earnings forecast to $1.94–1.96 per share, citing stabilization in its core business following a 12% workforce reduction announced in August.
Fastly reported record third-quarter revenue of $190.2 million, a 20% increase year-over-year, with adjusted earnings of 17 cents per share. Despite beating analyst estimates, the company's stock fell approximately 14% after the market closed. Fastly raised its full-year revenue guidance to $744–748 million and noted that its top 10 customers now account for 39% of total revenue.
