Shares of the New York company were climbing nearly 9% to $77.56 at last check.
Datadog reported net income of $20 million, or 6 cents a share, compared with $19 million, or 6 cents a share a year ago. The FactSet consensus called for earnings of 3 cents a share.
Revenue totaled $199 million, up 51% year-over-year and exceeding FactSet's forecast of $186.6. million.
Looking ahead, Datadog said it expects second-quarter revenue to range between $211 million and $213 million and net income of between 3 cents to 4 cents a share.
Analysts polled by FactSet are forecasting second-quarter revenue of $210 million and income of 3 cents a share.
Oliver Pomel, Datadog's co-founder and CEO, said in a statement that businesses are planning for a post-pandemic world and "we believe we are in a strong position to benefit from this trend."
For the full year, the company is calling for revenue between $880 million and $890 million and income of 13 cents to 16 cents a share. The FactSet consensus is expecting $882.2 million and 16 cents a share.
"We now see DDOG as the best positioned to capture not only the biggest market share of infrastructure monitoring but also the opportunity from companies that look to consolidate to a single monitoring vendor," said J.P.Morgan analyst Sterling Auty, who raised his price target on the stock to $104 from $102 a share.
Auty, who has a neutral rating on the company, said Datadog "will likely grow topline in excess of 30% the next two years, but we expect valuations to normalize for other hyper growth names and that will likely mean stock performance more in line with our overall coverage."
Barclay analyst Raimo Lenschow said that "we see Datadog as a unique asset in IT monitoring, benefitting from secular tailwinds of cloud migrations."
Lenschow, who has an overweight rating on the stock with a $108 price target, added the "company's differentiated platform, along with best-in-class customer economics should continue to drive strong [long-term] growth."
In February, Datadog beat Wall Street's fourth-quarter earnings and revenue expectations. And last year, Datadog partnered with software titan Microsoft’s (MSFT) - Get Microsoft Corporation (MSFT) Report Azure cloud unit.