MongoDB Inc. (NASDAQ:MDB) and Datadog Inc. (NASDAQ:DDOG) shares are trading higher Thursday. Several software names jumped following Snowflake Inc.'s (NYSE:SNOW) strong earnings report and optimistic guidance. Here's what you need to know.

What To Know: Snowflake exceeded analyst expectations in the third quarter, reporting $942.09 million in revenue, above the forecasted $896.99 million. Adjusted earnings came in at 20 cents per share, beating the estimate of 15 cents per share, according to Benzinga Pro.

Product revenue totaled $900.3 million, up 29% year-over-year. Snowflake guided for fourth-quarter product revenue in the range of $906 million to $911 million, and raised its full-year product revenue outlook from $3.356 billion to $3.43 billion, representing 29% year-over-year growth.

"Our obsessive drive to produce product cohesion and ease of use has built Snowflake into the easiest and most cost-effective enterprise data platform," said Sridhar Ramaswamy, CEO of Snowflake.

Snowflake's results appear to have sparked optimism around growing enterprise adoption of AI-powered data solutions, supported by the company's acquisition of Datavolo and multi-year partnership with Anthropic. Such has led to optimism across the data and cloud services sector, benefiting MongoDB and Datadog, among others.

MongoDB, known for its NoSQL database solutions, is a key player in managing enterprise data, which remains critical for businesses leveraging AI and cloud-based tools. Datadog, a monitoring and analytics platform for cloud applications, complements this ecosystem by providing insights into system performance and reliability. Cloud data providers are seen as integral to the broader data infrastructure required by enterprises adopting advanced analytics and AI-driven workflows.

MDB, DDOG Price Action: At publication time, MongoDB shares were up 14.9% at $323.77 and Datadog shares were up 7.27% at $145.29, according to Benzinga Pro.

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