Datadog (DDOG) Company Report

Datadog's business model, characterized by frictionless adoption and a usage model, supports sustained investment in R&D (around 30% of revenues) and sales and marketing, contributing to both growth and profitability.
The company delivered strong Q3 2025 results, including 28% total revenue growth, accelerated core business performance, and new logo annualized bookings that more than doubled year-over-year.
Datadog's security business achieved over $100 million in Annual Recurring Revenue (ARR), growing at a mid-50% year-over-year rate, primarily driven by its Cloud SIEM product and market opportunities.
Management indicates the company is in the "early innings" of its long-term evolution, expanding its platform into security and remediation, and capitalizing on opportunities in modernized workloads and AI adoption.

Dec 10, 2025, 8:30 AM

Transcript

Datadog CFO Discusses Growth Drivers, Market Trends, and Strategic Investments

DDOG

Revenue Acceleration/Inflection

New Projects/Investments

Product Launch

Datadog's business model, featuring a frictionless usage-based platform and efficient go-to-market, supports both high growth and profitability, with R&D consistently around 30% of revenues.
The company is in the early innings of a multi-year evolution into security and remediation, expanding beyond core observability, with significant opportunities in modernized workloads.
A positive buying environment in Q3 2025, extending into October, resulted in new logo annualized bookings more than doubling year-over-year and larger land sizes.
The security business has achieved over $100 million in ARR and is growing at a mid-50% year-over-year rate, primarily driven by its Cloud SIEM product and strong observability logs.
AI is a significant growth driver, both from AI-native companies adopting Datadog's platform and the company's internal integration of AI, including the recent General Availability of its first AI-native application, the SRE agent.

Dec 10, 2025, 8:30 AM

Transcript

Datadog CFO Discusses Business Model, Growth Drivers, and Strategic Investments

DDOG

Revenue Acceleration/Inflection

New Projects/Investments

Product Launch

Datadog's CFO, David Obstler, outlined the company's "flywheel" business model, which supports top-decile growth and strong margins through frictionless adoption, a usage model, and efficient go-to-market, enabling sustained 30% R&D investment.
The company is in the "early innings" of expanding its platform beyond core observability into security, remediation, and product analytics, with significant long-term growth potential in modernized workloads.
Datadog experienced an improved demand environment in Q3 2025, achieving 28% total revenue growth, an acceleration in the core business (excluding AI natives), and new logo annualized bookings more than doubling year-over-year, including larger, seven-figure wins.
Strategic investments in sales and marketing and R&D during 2025 are paying off, contributing to these results. The AI opportunity is a key growth driver, with strong demand from "AI natives" and Datadog integrating AI into its platform.
The security business has grown to over $100 million ARR, accelerating at mid-50% year-over-year, primarily driven by the maturity of its Cloud SIEM product and market disruption.

Dec 10, 2025, 8:30 AM

Transcript

Datadog CFO Highlights Broad-Based Strength and AI Native Traction at UBS Conference

DDOG

Revenue Acceleration/Inflection

Product Launch

New Projects/Investments

Datadog experienced a broad-based strong quarter, driven by expanded sales capacity and a more constructive buying environment compared to prior quarters.
The AI native cohort now accounts for 12% of revenues, demonstrating significant customer breadth with over 500 customers, over 100 spending more than $100,000, and over 15 spending $1 million.
The company successfully renewed and expanded a large contract, reinforcing its high gross retention rates (in the very high 90s) for large customers.
Datadog sees future growth opportunities in products like Cloud SIEM and service management, with Bits SRE recently going GA, while managing pricing through volume-based models and optimization tools.

Dec 2, 2025, 7:15 PM

Transcript

Datadog Discusses Strong Core Performance and AI-Native Growth at UBS Conference

DDOG

Revenue Acceleration/Inflection

New Projects/Investments

Datadog reported a broad-based strong quarter driven by expanding sales capacity, new and larger logos, and a rebound in the SMB segment, alongside maintained strength in enterprise, indicating a constructive buying environment.
The AI-native cohort now accounts for 12% of revenues, comprising over 500 customers, with more than 100 spending over $100,000 and 15 spending over $1 million, demonstrating significant breadth beyond a single large customer.
The company successfully renewed and expanded a large contract, reinforcing its high gross retention rates (98%+) for major clients and highlighting the economic benefits of using Datadog over in-house solutions.
Datadog sees long-term tailwinds from continued cloud migration and is focused on product extensions like Cloud SIEM and the recently GA'd Bits SRE for future growth, while balancing investments to maintain long-term growth rates and respect its mid-20s margin guidance.

Dec 2, 2025, 7:15 PM

Transcript

Datadog CFO Discusses Growth Drivers, Security Acceleration, and Long-Term Strategy

DDOG

Revenue Acceleration/Inflection

New Projects/Investments

M&A

Datadog's recent strong performance is attributed to expanding quota capacity, platform and product investments (including Digital Experience Monitoring exceeding $300 million and success in Cloud SIEM), and a reduced headwind from optimization.
The company is observing significant growth from non-AI customer cohorts, as AI is prompting the modernization of legacy workloads and accelerating new application creation, thereby increasing Datadog's market share.
Datadog's security business has accelerated, particularly in Cloud SIEM, due to enhanced capabilities, competitive cost advantages, and improved enterprise selling motions.
New logo additions were up dramatically, driven by successful ramping of quota capacity and securing larger deals through broader platform adoption.
Datadog maintains a long-term EBIT target of 25%, which is used to guide its investment strategy.

Nov 18, 2025, 3:00 PM

Transcript

Datadog Discusses Growth Drivers, Product Expansion, and Strategic Outlook at Conference

DDOG

Revenue Acceleration/Inflection

Product Launch

New Projects/Investments

Datadog is experiencing accelerated growth driven by expanded sales capacity, an increase in new and larger customer logos, and successful product investments, including Digital Experience Monitoring exceeding $300 million.
The company notes a positive trend in the non-AI customer cohort, attributing it to AI driving the modernization of legacy workloads and accelerating new application development, thereby increasing Datadog's platform market share.
Datadog's security business, especially Cloud SIEM, is accelerating due to enhanced capabilities, cost-effectiveness, and improved enterprise selling, with code security identified as a future opportunity.
With $4 billion in cash, Datadog views M&A as a strategic tool for product management, open to larger acquisitions that align with its product roadmap and integrate natively into the platform.
Datadog maintains a long-term EBIT target of 25% and highlights service management, security, and AI (including BitsAI and covering AI workloads) as key breakout opportunities for future expansion.

Nov 18, 2025, 3:00 PM

Transcript

Datadog CFO Discusses Recent Performance, Growth Drivers, and Future Opportunities

DDOG

Revenue Acceleration/Inflection

New Projects/Investments

Product Launch

Datadog's recent quarter marked an inflection point in performance, attributed to expanded quota capacity, product investments (including Digital Experience Monitoring exceeding $300 million), and reduced optimization headwinds.
The company reported continued momentum in October and a strong pipeline for Q4 and early next year, highlighted by the renewal and expansion of its largest AI customer and growth among other AI-native clients.
Datadog holds approximately $4 billion in cash and is open to larger M&A deals that align with its product strategy and integrate talent, while also investing in future growth areas like service management, security, and AI initiatives such as Bits AI.

Nov 18, 2025, 3:00 PM

Transcript

Datadog Reports Strong Q3 2025 Results and Provides Q4 and Full-Year Guidance

DDOG

Earnings

Guidance Update

Revenue Acceleration/Inflection

Datadog reported Q3 2025 revenue of $886 million, an increase of 28% year-over-year, and generated $214 million in free cash flow with a 24% free cash flow margin.
The company ended Q3 2025 with approximately 32,000 customers, including 4,060 customers with an Annual Recurring Revenue (ARR) of $100,000 or more, who collectively generated about 89% of the company's ARR.
Datadog observed an acceleration of year-over-year revenue growth across its non-AI customers, with sequential usage growth for non-AI existing customers being the highest in 12 quarters, and AI-native customers now representing 12% of revenue.
For Q4 2025, Datadog expects revenue to be in the range of $912 million-$916 million and non-GAAP operating income between $216 million-$220 million.
For the full fiscal year 2025, the company anticipates revenue between $3.386 billion-$3.390 billion and non-GAAP operating income between $754 million-$758 million.

Nov 6, 2025, 1:00 PM

Transcript

Datadog Reports Strong Q3 2025 Results and Provides Q4 and Full-Year Guidance

DDOG

Earnings

Guidance Update

Revenue Acceleration/Inflection

Datadog reported Q3 2025 revenue of $886 million, an increase of 28% year-over-year, and generated $214 million in free cash flow with a 24% margin.
The company experienced accelerated year-over-year revenue growth across its non-AI customers, noting the highest sequential usage growth for non-AI existing customers in 12 quarters.
Datadog ended Q3 2025 with approximately 32,000 customers, including 4,060 customers with an ARR of $100,000 or more, who collectively generated about 89% of the company's ARR.
For Q4 2025, Datadog expects revenue between $912 million and $916 million and non-GAAP net income per share between $0.54 and $0.56. For fiscal year 2025, revenue is projected to be between $3.386 billion and $3.390 billion, with non-GAAP net income per share between $2.00 and $2.02.

Nov 6, 2025, 1:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Datadog.

Q3 2025

Nov 6, 2025

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Q2 2025

Aug 7, 2025

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Q1 2025

May 6, 2025

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Datadog (DDOG)

Analyst Earnings Quarterly Reports

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Executives

Olivier Pomel

Adam Blitzer

Alexis Lê-Quôc

David Galloreese

David Obstler

Kerry Acocella

Sean Walters

Yanbing Li

Board Members

Ami Vora

Amit Agarwal

Dev Ittycheria

Julie Richardson

Matthew Jacobson

Michael Callahan

Shardul Shah

Titi Cole

Analyst Coverage

Mark Murphy

Raimo Lenschow

Sanjit Singh

Koji Ikeda

Andrew Sherman

Brent Thill

Gray Powell

Ittai Kidron

Jake Roberge

Kasthuri Rangan

Mike Cikos

Alex Zukin

Eric Keith

Fatima Boolani

Karl Keirstead

Karl Kierstad

Kash Rangan

Matthew Hedberg

Ryan MacWilliams

S. Kirk Materne

Adam Tindle

Andrew DeGasperi

Brad Reback

Eric Heath

Gregg Moskowitz

Howard Ma

Jacob Roberge

Matthew Martino

Michael Cikos

Patrick Colville

Patrick Walravens

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Earnings Transcripts

Q3 2025

Q2 2025

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