Datadog (DDOG) reported second-quarter 2024 non-GAAP earnings per share (EPS) of 43 cents, which increased 19.4% from the year-ago quarter and beat the Zacks Consensus Estimate by 22.86%. The company's net revenues of $645.28 million rose 26.7% year over year and beat the Zacks Consensus Estimate by 3.62%. Quarter Details The company ended the quarter with 28,700 customers, up from 26,100 in the prior-year period. In the second quarter, Datadog had 3,390 customers with an annual run rate (ARR) of $100,000 o ...

yucelyilmaz/iStock via Getty Images For the entirety of its life as a public company, Datadog (NASDAQ:DDOG) has only ever been one type of stock: "high quality for a high price." This Wall Street darling has been one of the few companies to rarely crack, as it continues to print gravity-defying revenue growth each quarter that shows barely any deceleration. For these merits, Datadog has consistently maintained a very high valuation multiple. But the key question for investors amid the current market correct ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _________________________________________________________ FORM 10-Q _________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39051 ________ ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $645 million, representing a 27% year-over-year increase and exceeding guidance [6][24] - Free cash flow was $144 million, with a free cash flow margin of 22% [6][29] - Gross profit was $530 million, resulting in a gross margin of 82.1%, down from 83.3% in the previous quarter [28] Business Line Data and Key Metrics Changes - 83% of customers used two or more products, up from 82% a year ago, and 49% used four or more products, up from 45% [7] - Digital experience monitoring products, including synthetics and real user monitoring, each generated over $100 million in ARR [7] Market Data and Key Metrics Changes - The enterprise segment showed strong performance, with higher usage growth compared to SMBs [25][46] - Net revenue retention percentage was in the mid-110s, indicating stable retention metrics [26] Company Strategy and Development Direction - The company continues to focus on digital transformation and cloud migration, with a strong emphasis on AI technology [22] - New product innovations were highlighted, including LLM Observability and enhanced data security capabilities [10][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the business environment remained stable, with existing customer usage growth aligning with expectations [8] - The outlook for Q3 2024 anticipates revenue in the range of $660 million to $664 million, reflecting a 21% year-over-year growth [29][30] Other Important Information - The company announced the appointment of two new leaders: Yanbing Li as Chief Product Officer and David Galloreese as Chief People Officer [23] - Billings for Q2 were $667 million, up 28% year-over-year, with remaining performance obligations (RPO) at $1.79 billion, a 43% increase [27] Q&A Session Summary Question: Assessment of demand environment and usage trends - Management indicated that enterprise segment strength and stability in SMB segment continued throughout the quarter, with higher usage growth than the previous year [32] Question: M&A strategy update - The company remains focused on small to medium-sized deals, with a high bar for larger, transformational acquisitions [34] Question: Impact of Cloudstrike outage on customer reactions - Management noted that while the outage was highly visible, it is a common occurrence in observability, and the company provides value in preventing and remediating such issues [38] Question: Observability product maturity and market changes - The company sees increased opportunities in the market and is investing in scaling its log management capabilities [40] Question: Spending patterns related to AI models - Management noted that while it is still early, there is increasing movement towards production for AI applications, which could drive future demand [45] Question: Differences in consumption growth between enterprise and SMB - Management explained that enterprise customers are more engaged in cloud migration, while SMBs may be more cautious due to macroeconomic factors [49] Question: LLM Observability product integration - Customers typically need observability integrated with their applications as they connect LLMs to other systems, making it essential for production environments [54] Question: Federal spending impact on Q3 - The company is building capacity for federal spending and pursuing government certifications to open up more market opportunities [70]

Datadog NASDAQ: DDOG is a leading provider of observability and security solutions for cloud applications. Datadog's earnings report for the second quarter of 2024 has once again impressed Datadog's analyst community by demonstrating the company's strong market position. Datadog's financial results were driven by robust revenue growth and continued customer adoption. This positive performance propelled Datadog's stock price up over 5% in pre-market trading, indicating strong investor confidence in the compa ...

Datadog (NASDAQ:DDOG) stock is heading higher on Thursday following the release of the cloud applications security platform company's earnings report for the second quarter of 2024. Datadog starts off its earnings report strong today with adjusted EPS of 43 cents. That's better than the 36 cents per share that Wall Street was expecting this quarter. Additionally, it's an improvement over the 29 cents per share reported in the same period of the year prior. Next up in the Datadog earnings report is its reven ...

Datadog Inc (NASDAQ:DDOG) is up 4.2% to trade at $112.55, after the company's better-than-expected second-quarter earnings and revenue. The cloud name also lifted its full-year forecast due to strong cybersecurity demand. The tech sector slump, especially after the global IT outage, weighed on the the stock in July and this month. However, DDOG is on track for its third-straight win, bouncing off the $100 level after four consecutive weekly losses. Year to date, Datadog stock is down 7.6%. Unsurprisingly, t ...

Datadog (DDOG) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 22.86%. A quarter ago, it was expected that this data analytics and cloud monitoring company would post earnings of $0.34 per share when it actually produced earnings of $0.44, delivering a surprise of 29.41%. Over the las ...

Exhibit 99.1 Datadog Announces Second Quarter 2024 Financial Results August 8, 2024 Second quarter revenue grew 27% year-over-year to $645 million Strong growth of larger customers, with about 3,390 $100k+ ARR customers, up from about 2,990 a year ago Announced general availability of LLM Observability Announced innovations for Generative AI, Observability, Cloud Security, Product Analytics, Software Delivery, and Cloud Service Management at DASH 2024 NEW YORK-- Datadog, Inc. (NASDAQ:DDOG), the monitoring a ...

Acquisition rumors and an expensive valuation were bad news for Datadog during last month's tech stock selloff. Shares of Datadog (DDOG 2.44%) slumped 11% in July, according to data from S&P Global Market Intelligence. The stock struggled with difficult market conditions related to a surprise global IT outage that weighed on tech stocks. Investor risk tolerance is declining because of a cloudy macroeconomic outlook, causing some people to rethink aggressive valuations on growth stocks. Reports of a transfor ...