Financial Data and Key Metrics - Revenue for Q3 2024 was $690 million, up 26% YoY and 7% QoQ, exceeding the high end of guidance [7][22] - Free cash flow was $204 million with a free cash flow margin of 30% [7] - Gross profit was $560 million, representing a gross margin of 81.1%, slightly down from 82.1% last quarter and 82.3% YoY [27] - Operating income was $173 million, with a 25% operating margin, up from 24% last quarter and 24% YoY [27] - Cash flow from operations was $229 million, and the company ended the quarter with $3.2 billion in cash, cash equivalents, and marketable securities [28] Business Line Data and Key Metrics - 83% of customers were using two or more products, up from 82% YoY, while 49% were using four or more products, up from 46% YoY [8] - Infrastructure monitoring, APM suite, and log management together represent more than $2.5 billion in ARR [8] - 15 out of 23 products now exceed $10 million in ARR, including CI visibility and cloud cost management [8] - AI native customers contributed 6% of Q3 ARR, up from 4% in Q2 and 2.5% YoY [23] Market Data and Key Metrics - The company added 29,200 customers, up from 26,800 YoY, with 3,490 customers having ARR of $100,000 or more, up from 3,130 YoY [7] - Net revenue retention (NRR) was in the mid-110s, with trailing 12-month gross revenue retention stable in the mid-to-high 90s [25] - Billings were $689 million, up 14% YoY, with remaining performance obligations (RPO) at $1.82 billion, up 26% YoY [26] Company Strategy and Industry Competition - The company continues to focus on expanding its platform in observability and next-gen AI, with strong customer adoption of AI integrations [6][10] - Datadog was named a leader in the 2024 Gartner Magic Quadrant for observability platforms and digital experience monitoring [13][14] - The company launched Datadog On Call, a new product in the cloud service management space, which has seen strong initial reception [12][13] Management Commentary on Operating Environment and Future Outlook - The business environment remained stable in Q3, with customers continuing to grow cloud usage while being cost-conscious [9][22] - The company expects revenue for Q4 2024 to be in the range of $709 million to $713 million, representing 20% to 21% YoY growth [29] - For fiscal year 2024, revenue is expected to be between $2.656 billion and $2.660 billion, representing 25% YoY growth [30] Other Important Information - The company highlighted several large customer deals, including a seven-figure deal with a leading Indian e-commerce company and a six-figure deal with a major U.S. federal agency [15][16] - Datadog On Call, though still in limited availability, is seeing strong customer interest and is being included in deals [12][13] Q&A Session Summary Question: AI Contributions and Future Traction - AI native customers contributed 6% of ARR in Q3, with initial signs of traction in LLM observability products [10][23] - The company expects AI adoption to drive long-term growth, though there may be short-term volatility due to rapid customer ramp-ups [23][64] Question: Billings and RPO Trends - Billings growth was affected by timing differences, but the company emphasized that revenue is a better indicator of business trends [26][36] - RPO growth was 26% YoY, with current RPO growth in the high 20% range, though duration slightly decreased [26] Question: Security and Service Management Trends - The company sees strong opportunities in cloud security and is investing in product development to unify its security platform [39][40] - Datadog On Call is receiving strong customer interest, with potential to expand beyond the Datadog ecosystem [79] Question: Customer Spending Intentions - While consolidation remains a theme, the company is also seeing increased interest in innovation, particularly around AI and cloud technologies [42][44] Question: Federal Government Opportunities - The company sees significant opportunities in the federal government sector, with early successes and plans to expand capacity and certifications [70][71] Question: Gross Margin and Usage Growth - Gross margins remain stable, with the company balancing new product development and optimization efforts [74][75] - Usage growth from existing customers continues to trend higher, with potential for acceleration as AI applications move into production [76] Question: Datadog On Call Opportunity - Datadog On Call is initially focused on the Datadog ecosystem but may expand to integrate with other incident resolution tools based on customer demand [79] Question: Product Growth and 2025 Outlook - The company is excited about several products, including database monitoring, which is growing rapidly and expected to exceed $50 million in ARR [82] - For 2025, the company is investing in engineering and sales capacity, with a focus on digital transformation and cloud migration trends [84][85]

Datadog (DDOG) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.95%. A quarter ago, it was expected that this data analytics and cloud monitoring company would post earnings of $0.35 per share when it actually produced earnings of $0.43, delivering a surprise of 22.86%.Over the last ...

Exhibit 99.1 Datadog Announces Third Quarter 2024 Financial Results November 7, 2024 Third quarter revenue grew 26% year-over-year to $690 million Robust growth of larger customers, with about 3,490 $100k+ ARR customers, up from about 3,130 a year ago Announced general availability of Datadog Monitoring for Oracle Cloud Infrastructure NEW YORK-- Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its third quarter ended September 30 ...

Datadog (DDOG) is scheduled to release third-quarter 2024 results on Nov. 7.For the third quarter of 2024, Datadog anticipates revenues between $660 million and $664 million. The Zacks Consensus Estimate for the same is currently pegged at $662.55 million, suggesting 21% growth from the year-ago period.Non-GAAP earnings per share are expected in the range of 38-40 cents. The Zacks Consensus Estimate for earnings has remained unchanged at 39 cents per share over the past 30 days, indicating a decline of 13.3 ...

Datadog (DDOG) ended the recent trading session at $126.37, demonstrating a -0.18% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.26%. Shares of the data analytics and cloud monitoring company have appreciated by 10.86% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.21% and the S&P 500's gain of 2%. Mar ...

Datadog was positioned the highest in its Ability to Execute NEW YORK, Oct. 24, 2024 /PRNewswire/ -- Datadog, Inc. (NASDAQ: DDOG), the monitoring and security platform for cloud applications, today announced it has been named a Leader in the first ever Gartner Magic Quadrant for Digital Experience Monitoring (DEM). Datadog's DEM solution includes Synthetic Monitoring and Testing, Real User Monitoring (RUM), Product Analytics, Session Replay and Error Tracking capabilities for browser and mobile applications ...

I have written about Datadog on Seeking Alpha, which can be found here . Like inDatadog (NASDAQ: DDOG ) has been punished by the market as a result of the weakness we saw in the overall software industry in 2024.Outperforming the MarketOutperforming the Market is focused on helping you outperform the market while having downside protection during volatile markets by providing you with comprehensive deep dive analysis articles, the AI deep dive report, and access to The Barbell Portfolio.The Barbell Portfoli ...

The report found that 46% of organizations are using unmanaged users with long-lived credentialsNEW YORK, Oct. 21, 2024 /PRNewswire/ -- Datadog, Inc. (NASDAQ: DDOG), the monitoring and security platform for cloud applications, today announced its new report, the State of Cloud Security 2024. The report found that long-lived credentials continue to be a major risk for organizations across all cloud providers.Long-lived cloud credentials never expire and frequently get leaked in source code, container images, ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Datadog (DDOG) , which belongs to the Zacks Internet - Software industry, could be a great candidate to consider.This data analytics and cloud monitoring company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 26.13%.For the ...

Artificial intelligence could be one of the most transformative technologies in history.Analysts at the Switzerland-based investment bank UBS believe artificial intelligence (AI) will be "the most profound innovation and one of the largest investment opportunities in human history." But that grandiose phrasing fails to capture how transformative the technology could be.Demis Hassabis, CEO of DeepMind, estimates humankind could achieve artificial general intelligence (AGI) by 2030, meaning a level of superin ...