Datadog President Amit Agarwal will step down by the tip of 2024 and be a part of the corporate’s board of administrators, the cybersecurity agency stated on Tuesday, sending its shares down almost 9% in early buying and selling.

Earlier than becoming a member of Datadog in 2012, Agarwal held mission administration roles in Quest Software program, now Dell, in addition to IBM.

The corporate additionally forecast second-quarter income above Wall Avenue estimates, anticipating a surge in demand for its cybersecurity options within the wake of rising cyber threats.

Rising on-line threats, ransomware assaults and hacking have fueled demand for synthetic intelligence-infused cybersecurity options.

Companies migrating their workloads to the cloud have additionally pushed utilization development for Datadog, which counts Peloton and Samsung Electronics amongst its greater than 3,000 clients.

The corporate handles cloud migration and supplies cloud safety administration providers.

It forecast second-quarter income within the vary of $620 million to $624 million, with the mid-point above analysts’ estimates of $620.6 million, in keeping with LSEG knowledge.

The corporate expects a second-quarter adjusted revenue of between 34 and 36 cents per share. Analysts had been estimating an adjusted revenue of 35 cents.

Income for the quarter ended March 31 stood at $611 million, in contrast with expectations of $591.3 million.

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