Datadog (DDOG) Company Report

Datadog reported strong revenue growth from $603 million in 2020 to $3.4 billion in 2025, alongside increasing non-GAAP operating profit and free cash flow margins, with a long-term operating margin goal of 25%+.
The company significantly increased its non-GAAP R&D spend from $0.14 billion in 2020 to $1.05 billion in 2025, supporting its dual AI strategy of integrating AI into its platform ("AI for Datadog") and providing observability for AI stacks ("Datadog for AI").
Datadog expanded its customer base from 14,200 in 2020 to 32,700 in 2025, demonstrating strong gross revenue retention of 97%+ and increasing multi-product adoption, with 84% of customers using 2+ products in 2025.
Datadog's market share grew from 0.4% in 2016 to 14% in 2025, targeting a large and growing Observability market estimated at $28 billion in 2026E.

Feb 12, 2026, 6:00 PM

Presentation

Datadog Outlines AI Strategy, Market Expansion, and Financial Goals at 2026 Investor Day

DDOG

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

Datadog is deeply integrating AI into its platform ("AI for Datadog") and providing solutions for customers developing AI applications ("Datadog for AI"), aiming to make customers significantly more productive.
The company has expanded its platform from one product in 2015 to 25 products for over 30,000 customers, handling trillions of events per hour. This expansion has increased its Total Addressable Market (TAM) to over $100 billion by addressing new markets like security and software delivery.
Datadog continues to grow its customer base, now serving over 32,000 customers, including 34 customers spending over $10 million (growing over 60%). The land-and-expand model drives approximately three-quarters of annual ARR growth from existing customers.
Datadog reaffirmed its long-term non-GAAP operating margin target of 25%+. In the last year, the company achieved a non-GAAP operating margin of 22% and a cash flow margin of 27%.

Feb 12, 2026, 6:00 PM

Transcript

Datadog Details Platform Strategy and AI Investments at 2026 Investor Day

DDOG

Product Launch

New Projects/Investments

Revenue Acceleration/Inflection

Datadog reported $1.6 billion ARR in infrastructure monitoring and over $1 billion ARR each in log management and the end-to-end APM and DEM suite, as of early February 2026.
The company is heavily investing in AI, having launched the Bits AI SRE Agent in 2025, which has since run over 100,000 investigations for customers, with more than 2,000 customers using it in January 2026.
Datadog has expanded its Total Addressable Market (TAM) to over $100 billion by adding security, software delivery, service management, and product analytics, with its security products surpassing $100 million in revenue one quarter ago.
Only 53% of customers currently use all three core pillars (Infrastructure Monitoring, Log Management, and APM/DEM), presenting a significant upsell opportunity as customers using all three pillars spend 15 times more.
The company maintains a high R&D investment, allocating 30% of revenues (over $1 billion in FY 2025) back into R&D, which is approximately 3X that of its closest peer.

Feb 12, 2026, 6:00 PM

Transcript

Datadog Outlines Growth Strategy and Product Innovation at 2026 Investor Day

DDOG

New Projects/Investments

Product Launch

Datadog invested over $1 billion in R&D in 2025 and plans to continue investing approximately 30% of revenues into R&D, alongside the launch of AI agents like Bits AI SRE to enhance productivity and incident resolution.
The company is expanding its platform beyond core observability into new markets such as security, software delivery, service management, and product analytics, projecting a total addressable market (TAM) of over $100 billion.
Datadog's land-and-expand model continues to drive growth, resulting in a 42% compound annual growth rate over time, with over 32,000 customers and 34 customers spending over $10 million.
Key product areas like Flex Logs are approaching $100 million ARR and growing rapidly, while Cloud SIEM has achieved 18x growth in five years, demonstrating successful market penetration and expansion.

Feb 12, 2026, 6:00 PM

Transcript

Datadog Reports Strong Q4 2025 Results with Accelerated Revenue Growth and Robust Bookings

DDOG

Earnings

Revenue Acceleration/Inflection

Guidance Update

Datadog reported strong Q4 2025 financial results, with revenue of $953 million, a 29% increase year-over-year, surpassing guidance. Bookings reached a record $1.63 billion, up 37% year-over-year, including 18 deals over $10 million in TCV.
The company saw accelerated revenue growth from its broad-based customers (excluding AI natives) at 23% year-over-year in Q4, up from 20% in Q3, alongside continued strong adoption among AI-native customers, with approximately 650 customers in this group.
Customer engagement remains high, with 84% of customers using two or more products and 9% using 10 or more products by the end of Q4 2025. Datadog released over 400 new features in 2025, with a significant focus on AI capabilities such as the Bits AI SRE agent and LLM observability.
Free cash flow for Q4 2025 was $291 million, achieving a 31% free cash flow margin, while the operating margin stood at 24%.
For Q1 2026, Datadog projects revenue between $951 million and $961 million, representing 25%-26% year-over-year growth, with non-GAAP operating income expected to be between $195 million and $205 million.

Feb 10, 2026, 1:00 PM

Transcript

Datadog Reports Strong Q4 2025 Results and Provides Positive 2026 Guidance

DDOG

Earnings

Guidance Update

Product Launch

Datadog reported strong Q4 2025 financial results, with revenue of $953 million, a 29% year-over-year increase, and bookings of $1.63 billion, up 37% year-over-year. The company also achieved $291 million in free cash flow with a 31% margin.
Customer metrics showed continued growth, ending Q4 with 32,700 customers and 4,310 customers generating 90% of ARR (those with $100,000 or more in ARR). Product adoption remains high, with 84% of customers using two or more products.
The company emphasized its AI initiatives, including the general availability of Bits AI SRE agent and expanded LLM observability capabilities, with about 5,500 customers utilizing Datadog AI integrations.
Datadog provided a positive outlook for 2026, projecting Q1 2026 revenue between $951 million and $961 million and full fiscal year 2026 revenue between $4.06 billion and $4.1 billion. Non-GAAP net income per share is expected to be $0.49-$0.51 for Q1 2026 and $2.08-$2.16 for FY 2026.

Feb 10, 2026, 1:00 PM

Transcript

Datadog Reports Strong Q4 2025 Results and Provides 2026 Guidance

DDOG

Earnings

Guidance Update

New Projects/Investments

Datadog reported Q4 2025 revenue of $953 million, an increase of 29% year-over-year, driven by broad-based positive trends and accelerated growth from AI-native customers.
The company achieved record bookings of $1.63 billion, up 37% year-over-year, and ended Q4 with approximately 32,700 customers, including 4,310 with an ARR of $100,000 or more.
Datadog generated free cash flow of $291 million with a 31% margin and maintained a trailing 12-month net revenue retention of approximately 120%.
In 2025, Datadog released over 400 new features and capabilities, significantly advancing its AI roadmap with products like Bits AI SRE agent and LLM observability, now used by approximately 5,500 customers for AI integrations.
For fiscal year 2026, Datadog expects revenues between $4.06 billion and $4.1 billion, representing 18%-20% year-over-year growth, and non-GAAP operating income between $840 million and $880 million.

Feb 10, 2026, 1:00 PM

Transcript

Datadog Reports Strong Q4 2025 Results and Provides Mixed Guidance

DDOG

Earnings

Guidance Update

Revenue Acceleration/Inflection

Datadog's Q4 revenue reached $953 million, marking 29% year-over-year growth, with non-GAAP EPS of $0.59, surpassing expectations.
The company ended fiscal 2025 with $4.47 billion in cash and marketable securities and generated $1,050 million in operating cash flow and $915 million in free cash flow.
Remaining performance obligation (RPO) surged to $3.46 billion, an increase of 52% year-over-year, indicating substantial contracted backlog growth.
While Q1 revenue guidance exceeded estimates, full-year revenue and adjusted EPS forecasts were slightly below Wall Street expectations.
Datadog plans to host an Investor Day on February 12 to provide further details on long-term targets and product strategy.

Feb 10, 2026, 12:17 PM

Barron's

Datadog Announces Q4 and FY 2025 Financial Results and 2026 Outlook

DDOG

Earnings

Guidance Update

Datadog reported strong financial performance for Q4 2025, with revenue growing 29% year-over-year to $953 million, and for fiscal year 2025, revenue increased 28% year-over-year to $3.43 billion.
The company achieved non-GAAP operating income of $230 million (24% margin) for Q4 2025 and $768 million (22% margin) for fiscal year 2025. Non-GAAP diluted net income per share was $0.59 for Q4 2025 and $2.05 for fiscal year 2025.
Datadog generated substantial cash flow in fiscal year 2025, with $1.05 billion in operating cash flow and $915 million in free cash flow.
Customer growth remained robust, with 603 customers generating $1 million or more in ARR as of December 31, 2025, marking a 31% increase from the previous year.
For Q1 2026, Datadog projects revenue between $951 million and $961 million, and for fiscal year 2026, revenue is expected to be between $4.06 billion and $4.10 billion.

Feb 10, 2026, 12:11 PM

8-K

Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results and 2026 Outlook

DDOG

Earnings

Guidance Update

Product Launch

Datadog reported Q4 2025 revenue of $953 million, marking a 29% year-over-year increase, and fiscal year 2025 revenue of $3.43 billion, up 28% year-over-year.
For Q4 2025, non-GAAP operating income was $230 million with a 24% margin, and non-GAAP diluted EPS was $0.59. For fiscal year 2025, non-GAAP operating income reached $768 million with a 22% margin, and non-GAAP diluted EPS was $2.05.
The company's customer base with $1 million or more in Annual Recurring Revenue (ARR) grew to 603 as of December 31, 2025, representing a 31% increase from the prior year.
Datadog provided fiscal year 2026 revenue guidance between $4.06 billion and $4.10 billion, and non-GAAP net income per share guidance between $2.08 and $2.16.

Feb 10, 2026, 12:00 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for Datadog.

Q4 2025

Feb 10, 2026

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Q3 2025

Nov 6, 2025

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Q2 2025

Aug 7, 2025

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Datadog (DDOG)

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Olivier Pomel

Adam Blitzer

Alexis Lê-Quôc

David Galloreese

David Obstler

Kerry Acocella

Sean Walters

Yanbing Li

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Amit Agarwal

Dev Ittycheria

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Mike Cikos

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Kash Rangan

Matt Hedberg

Matthew Hedberg

Peter Weed

Ryan MacWilliams

S. Kirk Materne

Todd Coupland

Adam Tindle

Andrew DeGasperi

Eric Heath

Gregg Moskowitz

Jacob Roberge

Matthew Martino

Michael Cikos

Patrick Colville

Patrick Walravens

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