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].

Core Viewpoint - Datadog has acquired Metaplane to enhance its cloud monitoring platform, focusing on end-to-end data observability, which is crucial for businesses relying on AI and data-driven applications [1][3]. Group 1: Acquisition and Strategic Expansion - The acquisition of Metaplane strengthens Datadog's capabilities in the rapidly growing data observability market, complementing previous launches like Data Jobs Monitoring and Data Streams Monitoring [2][3]. - By integrating Metaplane's technology, Datadog aims to provide full-stack visibility into data quality and flow, addressing a significant gap in its offerings [4][5]. Group 2: Customer Base and Product Adoption - Datadog ended 2024 with approximately 30,000 customers, including 45% of the Fortune 500, and over 3,600 customers generating $100,000 or more in annual recurring revenue (ARR) [4]. - The integration of end-to-end data observability is expected to enhance customer retention and cross-sell opportunities, as 50% of customers currently use four or more products [5]. Group 3: Financial Performance and Market Outlook - For Q1 2025, Datadog projects revenues between $737 million and $741 million, indicating a year-over-year growth of 20-21% [6]. - The full-year 2025 revenue outlook is between $3.175 billion and $3.195 billion, with non-GAAP earnings per share expected to be in the range of $1.65-$1.70 [6]. Group 4: Valuation and Stock Performance - Datadog shares have declined 28.8% year-to-date, underperforming both the Zacks Computer and Technology sector and the Zacks Internet – Software industry [10]. - The company currently trades at a forward 12-month price-to-sales (P/S) ratio of 10.33X, significantly higher than the industry average of 4.84X, indicating high growth expectations but an unattractive valuation for value investors [14]. Group 5: Competitive Landscape and Cost Challenges - Datadog faces increasing competition from major players like IBM, Microsoft, and cloud providers such as Amazon and Google, which pressure pricing in the observability and cloud monitoring space [16]. - The company is experiencing rising costs in research and development, sales and marketing, and general and administrative expenses, which increased by approximately 29.4%, 31.3%, and 29.6% year-over-year, respectively [17].

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Company Performance - Datadog (DDOG) closed at $101.47, with a daily increase of +1.88%, outperforming the S&P 500's gain of 0.74% [1] - Over the past month, Datadog's shares have decreased by 5.01%, while the Computer and Technology sector and the S&P 500 have lost 6.23% and 4.77%, respectively [1] Upcoming Earnings - Datadog is set to release its earnings report on May 6, 2025, with an expected EPS of $0.42, reflecting a 4.55% decline from the same quarter last year [2] - Revenue is projected to be $739.37 million, indicating a 20.96% increase compared to the previous year [2] Fiscal Year Estimates - For the fiscal year, earnings are estimated at $1.68 per share, a decrease of -7.69%, while revenue is projected at $3.19 billion, an increase of +18.7% from the prior year [3] - Recent changes to analyst estimates for Datadog may indicate short-term business trends, with positive revisions seen as a favorable sign for the company's outlook [3] Zacks Rank and Valuation - Datadog currently holds a Zacks Rank of 3 (Hold), with a recent 0.23% decrease in the consensus EPS estimate over the last 30 days [5] - The company has a Forward P/E ratio of 59.12, significantly higher than the industry average of 25.94, and a PEG ratio of 7.06 compared to the industry average of 2.13 [6] Industry Context - Datadog operates within the Internet - Software industry, which ranks 87th in the Zacks Industry Rank, placing it in the top 36% of over 250 industries [7] - The Zacks Industry Rank suggests that top-rated industries outperform lower-rated ones by a factor of 2 to 1 [7]

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 ...

Core Insights - Datadog has acquired Metaplane, an AI-powered data observability startup, to enhance its data observability capabilities and support existing and new customers through a rebranded offering [1][5] Company Overview - Metaplane was founded in 2020 by MIT graduate Kevin Hu, former HubSpot engineer Peter Casinelli, and ex-Appcues developer Guru Mahendran, initially focusing on customer success before pivoting to data analytics tools [2] - Prior to the acquisition, Metaplane raised $22.2 million from notable investors including Khosla Ventures and Y Combinator, and had around 10 employees as of January 2023 [4] Product and Technology - Metaplane utilizes anomaly detection AI models trained on historical metadata to monitor data and establish lineage from data warehouses, notifying stakeholders of issues through various tools [3] - The acquisition aims to unify observability across applications and data, helping organizations build reliable AI systems [2] Market Context - The data observability tools market was valued at $2.14 billion in 2023 and is projected to grow at a compound annual growth rate of 12.2% from 2024 to 2030 [7] - Datadog's recent earnings exceeded estimates, but its full-year 2025 revenue guidance fell short of expectations, highlighting the importance of expanding its data observability portfolio [6] Competitive Landscape - The data observability market is competitive, with major players including Monte Carlo, Cribl, Manta, and others, posing a challenge for Datadog to differentiate its offerings [7]

For me, Datadog, Inc. (NASDAQ: DDOG ) is the best investment tied to observability. The company has a good R&D department, it executes well land-and-expand and produces FCF with high efficiency. Compared to CrowdStrike it looks cheap. Considering the reverse DCF looks fairly valued. I rateI'm an Industrial Engineer. I read a lot of books and I'm very inspired by the quality investing branch. I look to buy and hold for the long term. Mainly focused on Tech stocksAnalyst’s Disclosure: I/we have a beneficial l ...

Core Viewpoint - Block, the fintech company formerly known as Square, is facing significant growth challenges, with its market cap potentially being eclipsed by Datadog and Zscaler by 2027 due to their higher growth rates and market dynamics [1][4]. Block (Fintech Company) - Block's revenue grew at a compound annual growth rate (CAGR) of 55% from 2015 to 2021, driven by its digital payment platform and Cash app [1]. - From 2021 to 2024, Block's revenue growth is expected to slow to a CAGR of 11%, and further to 9% from 2024 to 2027 [2]. - The company currently has a market cap of $33.4 billion, valued at 22 times forward earnings estimates and 1.3 times this year's estimated sales [3]. - If Block meets analysts' expectations, its market cap could grow by about 22% to $40.7 billion by 2027 [3]. Datadog (AI and Software Monitoring) - Datadog addresses software application fragmentation by providing real-time monitoring and diagnostic data aggregation, which is less affected by macroeconomic headwinds compared to Block [6][7]. - From 2020 to 2024, Datadog's revenue grew at a CAGR of 45%, with a significant increase in large customers [8]. - Analysts expect Datadog's revenue and GAAP to grow at a CAGR of 21% and 20%, respectively, from 2024 to 2027 [9]. - If Datadog maintains its valuation and meets expectations, its market cap could increase by 50% from $31.5 billion to $47.3 billion by 2027 [9]. Zscaler (Cybersecurity) - Zscaler provides cloud-native "zero-trust" cybersecurity tools, which are more scalable and easier to maintain than traditional on-site solutions [10]. - From fiscal 2019 to fiscal 2024, Zscaler's revenue grew at a CAGR of 48%, serving over 7,500 customers, including 30% of the Forbes Global 2000 [11]. - Analysts expect Zscaler's revenue to rise at a CAGR of 21% from 2024 to 2027, with profitability anticipated by the final year [12]. - With a current market cap of $30.6 billion, Zscaler's market cap could grow about 45% to $44.3 billion by 2027 if it maintains its premium valuation [12].

Datadog (DDOG) and Elastic (ESTC) are at the forefront of the observability market, helping businesses navigate the growing complexity of modern IT environments. As companies accelerate digital transformation, the surge in cloud-native applications is driving unprecedented data growth, and with it, the need for real-time insights.Observability platforms play a vital role in ensuring performance, reliability, and security across these dynamic ecosystems. With AI-driven analytics and continuous monitoring cap ...

Datadog Announces Date of First Quarter Fiscal Year 2025 Earnings CallApril 15, 2025 4:05 PM EDT | Source: Datadog, Inc.New York, New York--(Newsfile Corp. - April 15, 2025) - Datadog, Inc. (NASDAQ: DDOG), the monitoring and security platform for cloud applications, today announced that it will report its first quarter fiscal year 2025 financial results before the U.S. financial markets open on Tuesday, May 6, 2025. In conjunction with this announcement, Datadog will host a conference call on ...