A growing amount of Datadog's revenue is coming from artificial intelligence.The technology sector is on a tear in 2024, led by some of the largest companies in the world. As of this writing, the Nasdaq-100 index is up 22% year to date, with Nvidia stock soaring 182% and Meta Platforms stock up 57%.The smaller end of the tech sector isn't performing quite as well, however, and many stocks are still trading below their record levels from 2021. Datadog (DDOG -0.10%) stock, for example, is up just 4%, and it's ...

Cybersecurity is a big business and is getting bigger every day. Attacks are growing at an alarming double-digit pace and will accelerate in 2024. The rise of AI will accelerate growth in 2025 and increase the risks as black hats get smarter and stronger. That means sustained demand increases for products from leading cybersecurity firms like Fortinet NASDAQ: FTNT and Datadog NASDAQ: DDOG.  Get Datadog alerts:Fortinet: Protecting Networks From Cyber Attacks Fortinet provides various cybersecurity products a ...

Datadog (DDOG) delivered impressive third-quarter results, demonstrating robust growth and strategic execution. The company reported revenues of $690 million, marking a substantial 26% year-over-year increase and exceeding the high end of its guided range besides beating the Zacks Consensus Estimate by 4.15%.The company reported third-quarter 2024 non-GAAP earnings of 46 cents, which increased 27.8% from the year-ago quarter and beat the Zacks Consensus Estimate by 17.95%.With approximately 29,200 customers ...

Datadog (DDOG) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power ...

Kubernetes Active Remediation empowers users to detect issues, gain contextualized insights and make changes to repair Kubernetes environments—all within one integrated workflowNEW YORK, Nov. 12, 2024 /PRNewswire/ -- Datadog, Inc. (NASDAQ: DDOG), the monitoring and security platform for cloud applications, today announced the launch of Kubernetes Active Remediation, which builds on Datadog's automated troubleshooting capabilities to provide curated remediation guidance, best practices and end-to-end issue m ...

Investors need to dig in beyond the hype words.Datadog (DDOG -4.11%) and Snowflake (SNOW -2.15%) both help companies optimize their businesses with AI-powered applications. Datadog collects diagnostic data from a wide range of software applications, aggregates that information onto its unified dashboards, then feeds it all to its Bits AI generative AI platform. That process makes it much easier for IT professionals to diagnose software problems.Snowflake's cloud-based data warehouse is used to collect infor ...

Wall Street analysts are overwhelmingly bullish on Microsoft and Datadog.Generative artificial intelligence (AI) leans on large language models and other machine learning models to create media content like images, text, and videos. The technology had its big bang moment when OpenAI introduced ChatGPT in November 2022, and demand for such products is forecast to surge.Bloomberg Intelligence estimates generative AI software spending will increase 2,790% to approach $320 billion by 2032, compounding at 52% an ...

Datadog (DDOG) reported third-quarter 2024 non-GAAP earnings of 46 cents, which increased 27.8% from the year-ago quarter and beat the Zacks Consensus Estimate by 17.95%.Revenues of $690 million rose 26% year over year and beat the consensus estimate by 4.15%.Following the results, DDOG shares rose 1.12% in the pre-market trading. Datadog’s stock has gained 6.9% against the Zacks Computer and Technology sector’s rise of 28.5% in the year-to-date period.DDOG’s Quarterly Details Datadog ended the third quarte ...

Revenue Growth - Revenue for Q3 2024 was $690.0 million, a 26% YoY increase from $547.5 million in Q3 2023[107] - Revenue for the nine months ended September 30, 2024 was $1,946.5 million, a 27% YoY increase from $1,538.7 million in the same period of 2023[107] - Revenue increased by $142.5 million, or 26%, for the three months ended September 30, 2024 compared to the same period in 2023, with 75% from existing customers and 25% from new customers[139] - Revenue increased by $407.8 million, or 27%, in the nine months ended September 30, 2024 compared to the same period in 2023, with 75% from existing customers and 25% from new customers[146] Net Income and Profitability - Net income for Q3 2024 was $51.7 million, compared to $22.6 million in Q3 2023[107] - Net income for the nine months ended September 30, 2024 was $138.2 million, compared to a net loss of $5.4 million in the same period of 2023[107] - Operating income improved to $20.3 million in Q3 2024 from a loss of $4.2 million in Q3 2023[133] - Net income for Q3 2024 was $51.7 million, compared to $22.6 million in Q3 2023[133] Cash Flow and Liquidity - Operating cash flow for the nine months ended September 30, 2024 was $605.4 million, up from $439.7 million in the same period of 2023[107] - Free cash flow for the nine months ended September 30, 2024 was $534.1 million, up from $396.3 million in the same period of 2023[107] - Net cash provided by operating activities increased by $165.6 million in the nine months ended September 30, 2024 compared to the same period in 2023, driven by higher non-cash charges and accrued expenses[160] - Free cash flow increased to $534.1 million in the nine months ended September 30, 2024 compared to $396.3 million in the same period in 2023, driven by higher operating cash flow[164] - Company had $332.5 million in cash equivalents and $2.9 billion in marketable securities as of September 30, 2024[169] Customer Metrics - The company had 29,200 customers as of September 30, 2024, up from 26,800 as of September 30, 2023[110] - 3,490 customers had ARR of $100,000 or more as of September 30, 2024, representing 88% of ARR, up from 3,130 customers representing 86% of ARR as of September 30, 2023[112] - Trailing 12-month dollar-based net retention rate was in the mid-110%'s as of September 30, 2024, down from the high-110%'s as of September 30, 2023[113] - 83% of customers were using more than one product as of September 30, 2024, up from 82% a year earlier[116] Cost and Expense Analysis - Cost of revenue increased by $34.4 million, or 33%, primarily due to $28.6 million in third-party cloud infrastructure hosting and software costs and $4.8 million in personnel costs[140] - Gross margin decreased by 1% due to increased spend with third-party cloud infrastructure providers[141] - Research and development expense increased by $51.6 million, or 21%, driven by $38.4 million in personnel costs and $12.8 million in cloud infrastructure-related investments[142] - Sales and marketing expense increased by $30.9 million, or 20%, primarily due to $30.3 million in personnel costs and increased variable compensation[143] - General and administrative expenses increased to $52.4 million in Q3 2024 from $51.4 million in Q3 2023[133] - General and administrative expense increased by $1.1 million, or 2%, for the three months ended September 30, 2024 compared to the same period in 2023, primarily due to increased personnel costs[144] - Cost of revenue increased by $66.3 million, or 22%, in the nine months ended September 30, 2024 compared to the same period in 2023, primarily due to higher cloud infrastructure and personnel costs[148] - Gross margin increased by 1% to 81% in the nine months ended September 30, 2024 compared to the same period in 2023, driven by revenue growth exceeding cloud infrastructure costs[149] - Research and development expense increased by $127.2 million, or 18%, in the nine months ended September 30, 2024 compared to the same period in 2023, primarily due to higher personnel and cloud infrastructure costs[150] - Sales and marketing expense increased by $99.4 million, or 22%, in the nine months ended September 30, 2024 compared to the same period in 2023, driven by higher personnel and advertising costs[152] Other Income and Expenses - Interest income and other income, net increased to $37.4 million in Q3 2024 from $29.8 million in Q3 2023[133] - Other income, net increased by $7.3 million, or 26%, for the three months ended September 30, 2024 compared to the same period in 2023, driven by higher interest income from marketable securities[145] - Other income, net increased by $41.0 million, or 64%, in the nine months ended September 30, 2024 compared to the same period in 2023, primarily due to higher interest income from marketable securities[154] - Stock-based compensation expense totaled $142.2 million in Q3 2024, up from $123.1 million in Q3 2023[134] Financial Instruments and Risk Management - Company issued $747.5 million aggregate principal amount of the 2025 Notes on June 2, 2020[170] - Fair value of the 2025 Notes is influenced by interest rate risk, market risk, and Class A common stock price fluctuations[170] - All company sales are denominated in U.S. dollars, minimizing foreign currency risk[171] - Operating expenses are denominated in local currencies, primarily in the U.S., France, Ireland, and the U.K.[171] - A hypothetical 10% change in the U.S. dollar's relative value would not materially affect operating results[171] - A hypothetical 10% change in interest rates would not materially impact the company's financial statements[169]

Datadog, Inc. (NASDAQ:DDOG) Q3 2024 Earnings Conference Call November 7, 2024 8:00 AM ET Company Participants Yuka Broderick - VP, IR Olivier Pomel - CEO and Co-Founder David Obstler - CFO Conference Call Participants Mark Murphy - J.P. Morgan Sanjit Singh - Morgan Stanley Raimo Lenschow - Barclays Kash Rangan - Goldman Sachs Brent Thill - Jefferies Karl Keirstead - UBS Kirk Materne - Evercore ISI Mike Cikos - Needham Gray Powell - BTIG Ittai Kidron - Oppenheimer Operator Good day and thank you for standin ...