jumped as they made their debut in the public markets, reflecting robust investor demand for companies tied to cloud-based technologies.
The New York-based company’s stock gained 39% to $37.55 in trading Thursday.
Datadog said Wednesday it would sell 24 million shares on the Nasdaq Stock Market at $27 a share using the ticker “DDOG.”
With underwriters allowed to purchase an additional 3.6 million shares, Datadog could raise as much as $745.2 million in gross proceeds in the offering.
The company has created a cloud-based platform that developers, information-technology specialists and businesses use to monitor software applications, information-technology infrastructure and complete other tasks.
A number of firms that develop cloud-based software products that customers access online have reported strong growth and have attracted investors’ attention. Through early June, a group of 50 companies offering cloud-based software tracked by KeyBanc Capital Markets notched a stronger stock-price gain for the year than key benchmarks.
Datadog reported $153.3 million in revenue in the first six months of the year, almost double the amount it reported for the same period in 2018, according to a prospectus. Its net loss widened to $13.4 million from a small profit, as the company ramped up spending on marketing and research and development.
Founded in 2010, venture-capital firm Index Ventures owns 20% of the company’s Class B shares, Datadog’s public-offering prospectus shows. OpenView Venture Partners owns about 16% and Iconiq Strategic Partners owns 11%.
The shares the company sold Thursday have less voting power than the Class B stock.
recently had approached Datadog about purchasing the company, Bloomberg reported on Wednesday.
Write to Micah Maidenberg at email@example.com
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