Datadog (DDOG) Company Report

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.

2 days ago

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.

2 days ago

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

Datadog Reports Strong Q3 2025 Results with Revenue and Customer Growth Acceleration

DDOG

Earnings

Guidance Update

Revenue Acceleration/Inflection

Datadog reported strong Q3 2025 financial results, with revenue of $886 million, an increase of 28% year-over-year, surpassing guidance. The company also achieved $214 million in free cash flow, representing a 24% margin.
Growth was broad-based, with an acceleration of year-over-year revenue growth across non-AI customers, marking the highest sequential usage growth in 12 quarters. AI-native customers also demonstrated strong and accelerating growth, accounting for 12% of revenue in Q3 2025.
The customer base expanded to approximately 32,000 customers, including 4,060 customers with an ARR of $100,000 or more, who collectively generated 89% of the total ARR. Product adoption remained high, with 84% of customers utilizing two or more products.
For Q4 2025, Datadog forecasts revenue between $912 million and $916 million and non-GAAP EPS between $0.54 and $0.56. The full fiscal year 2025 revenue guidance is set between $3.386 billion and $3.390 billion, indicating 26% year-over-year growth.

Nov 6, 2025, 1:00 PM

Transcript

Datadog Announces Third Quarter 2025 Financial Results and Provides Q4 2025 Outlook

DDOG

Earnings

Guidance Update

Datadog reported Q3 2025 revenue of $886 million, representing a 28% year-over-year increase.
Non-GAAP operating income for Q3 2025 was $207 million, with a non-GAAP operating margin of 23%, and non-GAAP net income per diluted share was $0.55.
The company generated $251 million in operating cash flow and $214 million in free cash flow during the third quarter of 2025.
Datadog expects Q4 2025 revenue to be between $912 million and $916 million, with non-GAAP net income per share projected to be between $0.54 and $0.56.

Nov 6, 2025, 12:07 PM

8-K

Datadog Discusses Q2 Growth Drivers, AI Impact, and Strategic Investments

DDOG

Revenue Acceleration/Inflection

New Projects/Investments

Product Launch

Datadog accelerated top-line growth in Q2, with AI tool companies contributing 10% to growth and including eight of the 10 largest AI tool companies as customers.
The company achieved a milestone of crossing $100,000,000 in security revenue with strong growth.
Key product Annual Recurring Revenue (ARR) figures include $1.25 billion for infrastructure monitoring and $750 million each for logs and APM, contributing to a total ARR of over $3.3 billion.
Datadog is actively reinvesting, maintaining R&D at approximately 30% of revenues, and expanding go-to-market efforts, particularly in international markets like India and Brazil.
A 2025 mandate includes evolving the go-to-market strategy to land larger customers, enhance enterprise marketing, and improve channel partnerships.

Sep 3, 2025, 6:54 PM

Earnings Transcripts

Quarterly earnings call transcripts for Datadog.

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