Core Insights - Datadog reported a 25% year-over-year revenue growth, reaching $762 million in the first quarter of 2025 [1][5] - The company achieved $272 million in operating cash flow and $244 million in free cash flow during the same period [3][5] - Datadog's customer base includes approximately 3,770 customers with an Annual Recurring Revenue (ARR) of $100,000 or more, marking a 13% increase from the previous year [2][5] Financial Highlights - Revenue for Q1 2025 was $762 million, a 25% increase from $611 million in Q1 2024 [5][25] - GAAP operating loss was $(12) million, with a GAAP operating margin of (2)% [5] - Non-GAAP operating income was $167 million, resulting in a non-GAAP operating margin of 22% [5] - GAAP net income per diluted share was $0.07, while non-GAAP net income per diluted share was $0.46 [5][26] Business Developments - Datadog acquired Eppo, a feature flagging and experimentation platform, and Metaplane, a data observability platform [5] - The company announced plans for a new data center in Australia, expanding its global infrastructure [5] - Datadog was named a Leader in The Forrester Wave™: AIOps Platforms, Q2 2025 [5] Outlook - For Q2 2025, Datadog expects revenue between $787 million and $791 million [5] - The full-year 2025 revenue outlook is projected to be between $3.215 billion and $3.235 billion [5] - Non-GAAP net income per share for the full year is anticipated to be between $1.67 and $1.71 [6]

Datadog, Inc. DDOG will release earnings results for the first quarter, before the opening bell on Tuesday, May 6. Analysts expect the New York-based company to report quarterly earnings at 43 cents per share, down from 44 cents per share in the year-ago period. Datadog projects to report quarterly revenue at $741.4 million, compared to $611.25 million a year earlier, according to data from Benzinga Pro. Datadog announced Monday that it has acquired Eppo, a platform specializing in feature flagging and expe ...

Rosenblatt analyst Blair Abernethy maintained a buy on Datadog DDOG and lowered the price target from $160 to $150 on Sunday.Datadog will report first-quarter 2025 results on May 6, before the market opens.For the first quarter, Abernethy expected total revenue of $739.6 million (versus FactSet Consensus of $741.7 million, guidance: $737 million-$741 million), up 21% Y/Y organically.Also Read: Datadog Q4 Earnings: Margins Shrink, Outlook Lags ExpectationsAdjusted operating income of $164.9 million (versus F ...

Group 1: Acquisition and Strategic Moves - Datadog has acquired Eppo, a feature flagging and experimentation platform, following its recent acquisition of Metaplane, an AI-powered observability startup [1] - The acquisition is expected to enhance Datadog's product analytics solutions, which is a significant sector projected to grow from $9.09 billion last year to $27.01 billion by 2032 [8] Group 2: Eppo's Offerings and Market Position - Eppo provides "confidence intervals" to simplify the interpretation of randomized app experiment results and supports experimentation with AI and machine learning models [4] - Eppo has distinguished itself in a competitive market, having raised $47.5 million from notable VC firms before its acquisition [5] - As of June 2022, Eppo had around 15 employees and was valued at $80 million, with clients including Goldbelly, Netlify, and Kumu [6] Group 3: Industry Context and Challenges - The infrastructure for product analytics remains complex, requiring data pipelines and statistical methods, which can be difficult to configure in cloud environments [2] - The use of multiple AI models complicates application deployment, but experimentation can help teams compare models and assess user engagement against cost tradeoffs [9]

Core Insights - Datadog has acquired Eppo, a feature flagging and experimentation platform, to enhance its Product Analytics suite, enabling companies to build high-quality products faster and with reduced risk, particularly in AI applications [1][3]. Group 1: Acquisition and Integration - The acquisition of Eppo allows Datadog to create a comprehensive end-to-end product analytics solution on a single platform, integrating feature flags and experimentation capabilities [3]. - This unified approach enables engineers to track code changes, data science leaders and product managers to design and measure impact, and business analysts to understand product usage and business outcomes [3]. Group 2: Benefits of Experimentation - Eppo's experimentation capabilities are designed to help developers scale complex AI systems safely, measuring real-time impacts on user experience and facilitating agile development workflows [4]. - The integration of experimentation allows teams to compare multiple AI models, assess user engagement against cost tradeoffs, and ultimately build AI products that deliver measurable value [5]. Group 3: Company Overview - Datadog is a monitoring and security platform for cloud applications, providing a SaaS platform that integrates various capabilities for real-time observability and security across technology stacks [6]. - The platform is utilized by organizations of all sizes and industries to support digital transformation, enhance collaboration, accelerate application time to market, and track key business metrics [6].

Core Viewpoint - Datadog is expected to report first-quarter 2025 results on May 6, with projected revenues between $737 million and $741 million, and non-GAAP net income per share between 41 and 43 cents [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $739.37 million, indicating a year-over-year growth of 20.96% [2]. - The consensus estimate for earnings is 42 cents per share, reflecting a year-over-year decline of 4.55% [2]. - International revenues are estimated at $223 million, suggesting a rise of 19.9% year-over-year, while North America revenues are pegged at $516 million, indicating growth of 21.1% [14]. Customer Metrics - The estimated number of customers for the first quarter of 2025 is 30,630, representing a 9.4% increase year-over-year [15]. - The number of customers with more than $100,000 in annual recurring revenue (ARR) is estimated at 3,717, suggesting an increase of 11.3% from the previous year [15]. Recent Performance and Trends - Datadog experienced a strong finish to the previous year with record bookings and 25% revenue growth, but has provided a cautious growth forecast of 21% for the first quarter [8]. - The company delivered an earnings surprise of 13.95% in the last reported quarter, with an average surprise of 21.04% over the trailing four quarters [6]. Competitive Landscape - Datadog faces increasing pricing pressure from competitors such as IBM, Microsoft, and Broadcom, which may limit pricing flexibility and slow customer expansion [12]. - The company is also competing against native solutions from major cloud providers like Amazon, Google, and Microsoft, as well as other players in the APM and Log Management space [12]. Product Development and Market Strategy - New products like LLM observability, Flex Logs, and security tools are gaining traction, particularly among enterprise customers, with several large deals signed in the fourth quarter [13]. - Sales and marketing spending increased by 31% year-over-year as Datadog aims to expand its reach and promote new products, although this has added to operating costs [10]. Valuation and Investment Considerations - Datadog's shares have declined by 28.5% year-to-date, compared to a 10.6% decline in the Zacks Computer and Technology sector and a 5.7% decline in the S&P 500 [16]. - The company currently trades at a forward 12-month price-to-sales (P/S) ratio of 10.36X, significantly higher than the industry average of 4.88X, indicating high growth expectations but an unattractive valuation for value investors [19].

Datadog (DDOG) has expanded its cloud monitoring platform with the acquisition of Metaplane, a company that specializes in end-to-end data observability. Metaplane’s machine learning-powered tools help businesses detect, prevent, and fix data quality issues across their entire data stack, helping build greater trust in the information that powers AI models and modern applications.This move builds on Datadog’s earlier launches like Data Jobs Monitoring and Data Streams Monitoring, strengthening its push into ...

The S&P 500 (^GSPC 0.06%) is down 6% in 2025 amid rising global trade tensions, triggered by the sweeping tariffs President Donald Trump enacted on imported goods from America's trading partners. But throughout history, the stock market has always recovered to new highs even after the most brutal economic shocks -- from the Great Depression to the COVID-19 pandemic -- so the recent dip could be a great opportunity for investors to put some money to work. Rising trade tensions can impact all companies if the ...

Datadog (DDOG) closed the most recent trading day at $101.47, moving +1.88% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 1.26%.Coming into today, shares of the data analytics and cloud monitoring company had lost 5.01% in the past month. In that same time, the Computer and Technology sector lost 6.23%, while the S&P 500 lost 4.77%.The investment community will ...

Datadog's State of DevSecOps 2025 Report Finds Only 18% of Critical Vulnerabilities Are Truly Worth PrioritizingThe report also found that exploitable vulnerabilities are especially prevalent in Java applicationsApril 23, 2025 4:05 PM EDT | Source: Datadog, Inc.New York, New York--(Newsfile Corp. - April 23, 2025) - Datadog, Inc. (NASDAQ: DDOG), the monitoring and security platform for cloud applications, today released its new report, the State of DevSecOps 2025, which found that only a fract ...