Total Revenue

+25% (from $589.65M in Q4 2023 to $737.68M in Q4 2024)

Strong revenue growth continued from robust adoption by both existing and new customers—similar to trends noted in previous quarters—and expanded geographic reach. This momentum even exceeded previous growth drivers, reflecting deeper platform adoption and efficient customer acquisition strategies. " "

International Revenue

+24% (from $180.5M in Q4 2023 to $223.77M in Q4 2024)

Growth in international markets was driven by expanded market penetration and increased product adoption across regions, following earlier patterns of steady global performance seen in prior periods. " "

Operating Income

–66% (from $27.74M in Q4 2023 to $9.39M in Q4 2024)

Despite higher revenue, operating income declined dramatically likely due to disproportionate increases in operating expenses (e.g., higher R&D, S&M, and G&A costs) that outpaced cost efficiencies compared to previous periods where margin improvements were noted. " "

Net Income

–15% (from $53.99M in Q4 2023 to $45.59M in Q4 2024)

The decline in net income reflects the impact of lower operating income combined with cost pressures and possible shifts in non-operating income elements, even as revenue growth remained robust—continuing a trend of tighter profitability margins relative to prior periods. " "

EPS – Basic/Diluted

–23% (from $0.17 in Q4 2023 to $0.13 in Q4 2024)

EPS fell significantly as a direct consequence of the net income drop, with modest changes in the weighted average share count having little mitigating effect on earnings per share, mirroring the overall lower margin performance seen in operating and net income. " "

Net Change in Cash

Significant increase (from $69.03M in Q4 2023 to $909.57M in Q4 2024)

A dramatic improvement in cash position was achieved—primarily driven by strong operating cash flow and favorable financing/investing activities (such as large inflows from maturities and stock option exercises) that reversed the trend seen in the prior period, reflecting enhanced liquidity management. " "

Revenue

Q1 2025

no prior guidance

$737 million to $741 million (21% year-over-year growth) "

no prior guidance

Non-GAAP Operating Income

Q1 2025

no prior guidance

$162 million to $166 million (22% operating margin) "

no prior guidance

Non-GAAP Net Income Per Share

Q1 2025

no prior guidance

$0.41 to $0.43 (based on approximately 366 million weighted average diluted shares outstanding) "

no prior guidance

Revenue

FY 2025

no prior guidance

$3.75 billion to $3.195 billion (18% to 19% year-over-year growth) "

no prior guidance

Non-GAAP Operating Income

FY 2025

no prior guidance

$655 million to $675 million (21% operating margin) "

no prior guidance

Non-GAAP Net Income Per Share

FY 2025

no prior guidance

$1.65 to $1.70 (based on approximately 369 million weighted average diluted shares outstanding) "

no prior guidance

Net Interest and Other Income

FY 2025

no prior guidance

Approximately $120 million "

no prior guidance

Non-GAAP Tax Rate

FY 2025

no prior guidance

21% "

no prior guidance

Cash Taxes

FY 2025

no prior guidance

Expected to be about 1% of 2025 revenues or approximately $30 million to $35 million "

no prior guidance

Capital Expenditures and Capitalized Software

FY 2025

no prior guidance

Expected to be 4% to 5% of revenues "

no prior guidance

AI Adoption and Monetization

Consistently discussed from Q1 through Q3 with emphasis on increasing AI native customer percentages (e.g., 2.5%→>6% ARR), gradual improvements in contribution to revenue growth, limited monetization of training workloads, and early-stage in-housing risks ( " " " " ).

In Q4, there is stronger emphasis on AI native customers (6% ARR, contributing 5 percentage points to YoY revenue growth), the launch of LLM observability for production use across industries, and a continued view of AI adoption as a long‑term secular growth driver while acknowledging risks from in‑housing by very large customers ( " " " " ).

Consistent upward momentum. The conversation has evolved from early experimentation to robust production use. Sentiment remains positive overall with an increased focus on the broader market opportunity and operationalizing AI observability.

Sales, Marketing, and R&D Investment

Across Q1–Q3, executives emphasized scaling sales capacity, significant headcount increases, and boosting R&D investments to expand platform offerings, with several major customer wins reinforcing the strategy ( " " " " ).

Q4 highlights record bookings exceeding $1 billion, marked headcount growth (sales and marketing up from 2,400 to 3,000 and R&D from 2,400 to 3,100), substantial investments into new product capabilities, and focus on underserved geographies—all reinforcing a disciplined yet aggressive growth model ( " " " ).

Stable and bullish. The commitment to invest in sales and R&D remains consistent with a strategic acceleration in growth initiatives. There is positive sentiment as increased investments continue to support customer wins and market expansion.

New Product Innovation and Offerings

In Q1–Q3, there was regular discussion of new product launches such as Flex Logs, Cloud SIEM, OnCall (initially in limited availability), and related innovations like agentless scanning—all positioned to expand the observability and security portfolio ( " " " " " ).

Q4 emphasizes broader customer adoption of Flex Logs (driving cost savings and enhanced observability), the general availability and strong market reception of OnCall, and further expansion of Cloud SIEM capabilities, which are now key differentiators in their product suite ( " " " " " ).

Evolving with depth. While the topics themselves are consistent, Q4 sees deeper market traction and wider adoption. Sentiment is upbeat as product innovations are becoming integral to competitive positioning and future growth.

Usage Growth Dynamics and Bookings-to-Revenue Conversion

From Q1 through Q3, discussions centered on steady usage growth—especially from enterprise and existing customers—and the inherent variability between bookings, RPO, and revenue due to invoicing timing and contract durations ( " " " " ).

In Q4, usage growth remains steady with strong contributions from AI native and enterprise segments, record bookings are noted, and executives reinforce that revenue is the primary indicator despite short‑term volatility in bookings and RPO, with seasonality and volume discounts factored in ( " " " " ).

Steady with record indicators. The underlying usage trends remain robust and consistent. Although the nuances of bookings and revenue timing continue to pose forecasting challenges, the emphasis on revenue as the “North Star” persists, with Q4 showing record booking numbers.

Enterprise Growth and Cloud Migration Trends

Q1–Q3 consistently highlighted strong growth among enterprise customers, incremental increases in ARR from large customers, and the role of digital transformation and cloud migration as long‑term secular trends driving performance ( " " " " " ).

In Q4, enterprise growth is evidenced by increases in the number of customers with ARR >$100K and >$1M, plus expanded presence among Fortune 500 companies. Cloud migration remains a core driver as companies continue to move workloads to the cloud, reflecting persistent digital transformation trends ( " " " " ).

Continued strength and acceleration. The long‑term secular trends remain in force, with Q4 showing amplified enterprise penetration and ongoing cloud migration. Sentiment is firmly positive on the prospects for sustained enterprise growth.

Forecast Uncertainty and Growth Metric Challenges

Q1–Q3 earnings calls stressed that metrics such as RPO, bookings, and billings can be volatile due to contract durations and seasonality. Executives maintained that revenue remains the key metric and guidance is set conservatively to account for these challenges ( " " " " " ).

Q4 discussions reiterate that despite achieving record bookings, revenue timing differences and customer optimizations create inherent uncertainties. The conservative guidance approach persists, with multiple citations emphasizing that revenue – not bookings or RPO – best reflects underlying trends ( " " " " " ).

Consistent caution. The challenges with timing differences and metric variability persist. While record bookings provide a strong signal, the management’s conservative approach remains unchanged, reflecting prudent guidance in the face of inherent uncertainties.

Resource Allocation Impacts (AI vs. Traditional Workloads)

Discussions in Q1–Q3 consistently noted that while customers are increasingly experimenting with AI, the majority of revenue comes from traditional production applications and cloud migration workloads. There was acknowledgement of early-stage AI investments without significant disruption to core business ( " " " " ).

In Q4, executives note that AI experimentation is growing—with increased AI native customer impact and new products like LLM observability—but traditional workloads and digital transformation still drive overall growth. The evolving ecosystem around inference workloads is highlighted, reinforcing a balanced resource allocation ( " " " " ).

Balanced focus with emerging AI prominence. Although AI experimentation is increasingly visible, traditional workloads remain the backbone of growth. The narrative evolves toward integrating AI capabilities without undermining the established business model, suggesting a cautiously optimistic long-term view.

Operating Margin and Financial Guidance Pressure

Across Q1–Q3, operating margins were discussed in the context of strong performance tempered by increased investments—Q1 showing high margins with cautious full-year guidance, Q2 and Q3 reflecting adjustments due to rising expenses ( " " " " ).

Q4 shows a slight contraction in operating margins (e.g., 24% in Q4 compared to 25% previously) due to heavy investments. Guidance for Q1 2025 and full-year 2025 assumes further margin compression as expenses in sales, marketing, and R&D continue to climb ( " ).

Modest pressure due to growth investments. While margins remain strong, strategic investments are squeezing near-term profitability as reflected in more cautious future guidance. The trend remains consistent with a willingness to sacrifice margin for market expansion and innovation.

Geographic Sales Expansion Strategies

In Q1, geographic expansion was addressed with focus on accelerating sales capacity in less mature international markets (e.g., Brazil, Korea) and highlighting superior revenue growth outside North America ( " " ). Q3 emphasized a targeted push in India with significant deals, although Q2 had little explicit commentary on this topic.

In Q4, the strategy remains focused on underserved geographies and expanding through channel partnerships and increased sales capacity. The global approach is reinforced by continuous investments despite the company being predominantly USD‑based ( " " " " ).

Consistent and broadening. Geographic expansion has been a recurring priority. While Q1 and Q3 highlighted specific regions, Q4 reflects a broader initiative that leverages both localized partnerships and ramped sales capacity, confirming continued focus on international market penetration.