Datadog, Inc. (NASDAQ:DDOG) is one of the stocks in focus on Jim Cramer’s game plan. Cramer called the stock “too expensive,” as he remarked: On Tuesday, we’re back in heavy earnings rotation. We’ve got DuPont, Coca-Cola, CVS Health, AstraZeneca, Datadog, and S&P Global report… Next, we have the tales of powerful AI companies destroying little guys, and this time it’s Datadog and S&P Global. The Dog is the kind of software-as-a-service company that was once loved. Not anymore. Stock’s been nearly cut in h ...

Core Insights - Datadog reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, and showing an increase from $0.49 per share a year ago, resulting in an earnings surprise of +7.27% [1] - The company achieved revenues of $953.19 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.22% and increasing from $737.73 million year-over-year [2] Earnings Performance - Datadog has consistently surpassed consensus EPS estimates over the last four quarters, with the latest earnings surprise being +22.22% compared to the previous quarter's expectation of $0.45 per share [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.51, with projected revenues of $929.6 million, while the estimate for the current fiscal year is $2.27 on $4.06 billion in revenues [7] Market Position and Outlook - Despite the positive earnings report, Datadog shares have underperformed the market, losing about 16.2% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The company's Zacks Rank is currently 4 (Sell), indicating expectations of underperformance in the near future, influenced by unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Internet - Software industry, to which Datadog belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable industry outlook that could impact stock performance [8] - Another company in the same industry, Pinterest, is expected to report earnings soon, with a consensus EPS estimate of $0.66, reflecting a year-over-year increase of +17.9% [9]

Financial Data and Key Metrics Changes - Q4 revenue was $953 million, an increase of 29% year-over-year and above the high end of guidance [7][27] - Free cash flow was $291 million, with a free cash flow margin of 31% [8][30] - Gross profit for Q4 was $776 million, with a gross margin percentage of 81.4% [29] - Billings were $1.21 billion, up 34% year-over-year [29] - Remaining performance obligations (RPO) was $3.46 billion, up 52% year-over-year [29] Business Line Data and Key Metrics Changes - Infrastructure Monitoring contributes over $1.6 billion in ARR [10] - Log Management is now over $1 billion in ARR [10] - APM and DEM products also crossed $1 billion in ARR, with core APM product growth in the mid-30s% year-over-year [10] - 84% of customers used two or more products, up from 83% a year ago [8] Market Data and Key Metrics Changes - Datadog ended Q4 with approximately 32,700 customers, up from about 30,000 a year ago [7] - 48% of Fortune 500 companies are Datadog customers, indicating strong market penetration [9] - The median ARR for Fortune 500 customers is still less than $500,000, suggesting significant growth potential [9] Company Strategy and Development Direction - The company continues to focus on digital transformation and cloud migration as long-term growth drivers [25] - Datadog is integrating AI into its platform to enhance customer value and outcomes [25] - The company aims to solve end-to-end problems across software development, production, data stack, user experience, and security needs [25] Management's Comments on Operating Environment and Future Outlook - Management noted broad-based positive trends in demand driven by cloud migration [5] - There is an expectation of increased AI usage among customers, with significant growth anticipated in 2026 [26] - The company is optimistic about its ability to capitalize on market opportunities and deliver value to customers [25] Other Important Information - The company released over 400 new features and capabilities in 2025 [11] - Datadog launched several new products, including Data Observability and enhanced security features [16][17] - The company is seeing strong growth dynamics with its core observability pillars as customers adopt modern technologies [10] Q&A Session Summary Question: Observability's future in the context of advancements in AI - Management believes that increased productivity from AI will lead to more complexity, which observability can help manage [38][39] Question: Evolution of observability with human and agentic SREs - The company is preparing for more automation and is building products to satisfy both human and agentic interactions [41][42] Question: Insights on the eight-figure deal with an AI model company - The deal reflects the value Datadog provides over homegrown solutions, as companies recognize the cost of internal development [46][47] Question: LLMs as anomaly detection tools and Datadog's competitive moat - Management sees LLMs improving but believes Datadog's ability to provide context and proactive solutions is a significant advantage [51][55] Question: Guidance assumptions for 2026 - The company has taken a conservative approach in its guidance, expecting at least 20% growth excluding its largest customer [62] Question: Impact of LLM rise on competition - Management does not see significant changes in competition and believes Datadog is well-positioned to capture market share [68][69]

Financial Data and Key Metrics Changes - Q4 revenue was $953 million, an increase of 29% year-over-year and above the high end of guidance [7][27] - Free cash flow was $291 million, with a free cash flow margin of 31% [8][30] - Gross profit for Q4 was $776 million, with a gross margin percentage of 81.4% [29] - Billings were $1.21 billion, up 34% year-over-year [29] - Remaining performance obligations (RPO) was $3.46 billion, up 52% year-over-year [29] Business Line Data and Key Metrics Changes - Infrastructure Monitoring contributes over $1.6 billion in ARR [10] - Log Management is now over $1 billion in ARR [10] - APM and DEM products also crossed $1 billion in ARR, with core APM product growth in the mid-30s% year-over-year [10] - 84% of customers used two or more products, up from 83% a year ago [8] - 55% of customers used four or more products, up from 50% a year ago [8] Market Data and Key Metrics Changes - 48% of the Fortune 500 are Datadog customers, indicating strong market penetration [9] - The median ARR for Fortune 500 customers is still less than $500,000, suggesting significant growth potential [9] - Approximately 650 AI-native customers are using Datadog, with 19 customers spending $1 million or more annually [28] Company Strategy and Development Direction - The company continues to focus on digital transformation and cloud migration as long-term growth drivers [25] - Plans to integrate AI into the Datadog platform to enhance customer value and outcomes [25] - The company aims to expand its platform to address end-to-end customer needs across software development, production, data stack, user experience, and security [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing momentum of cloud migration and the acceleration of revenue growth [5] - The company anticipates continued strong adoption among AI-native customers, with growth significantly outpacing the rest of the business [27] - Management expects revenues for Q1 2026 to be in the range of $951 million to $961 million, representing 25%-26% year-over-year growth [31] Other Important Information - The company released over 400 new features and capabilities in 2025 [11] - Significant growth in AI-related products, with over 5,500 customers using Datadog AI integrations [15] - The company launched Data Observability for end-to-end visibility across the data lifecycle [16] Q&A Session Summary Question: Observability's Future in the Context of AI - Management believes that the rise of AI will increase the complexity of systems, necessitating enhanced observability tools [39][40] Question: Evolution of UI and Workflows with AI - Management acknowledged that there will be an evolution in UI and workflows to accommodate both human and agentic SREs [41][42] Question: AI Customer Concentration and Growth - Management noted that the AI cohort is diversified, with significant growth among various customers [62][81] Question: Competition and Market Dynamics - Management stated that competition remains stable, with no significant changes in market dynamics due to the rise of LLMs [68][69] Question: CapEx Trends and Future Revenue - Management indicated that while CapEx trends are significant, it is challenging to directly correlate them to LLM observability revenue [75] Question: Diversifying AI Customer Base - Management emphasized that the company is not reliant on a few customers and is seeing growth across a broad range of AI customers [78][81]

Financial Data and Key Metrics Changes - Q4 revenue was $953 million, an increase of 29% year-over-year and above the high end of guidance [5][26] - Free cash flow was $291 million, with a free cash flow margin of 31% [6][30] - Gross profit for Q4 was $776 million, with a gross margin percentage of 81.4% [28] - Billings were $1.21 billion, up 34% year-over-year [28] Business Line Data and Key Metrics Changes - Infrastructure Monitoring contributes over $1.6 billion in ARR, Log Management is now over $1 billion in ARR, and APM products also crossed $1 billion in ARR [9] - 84% of customers used two or more products, up from 83% a year ago, and 55% used four or more products, up from 50% [6] - The number of customers with an ARR of $100,000 or more increased to about 4,310, up from about 3,610 a year ago [6] Market Data and Key Metrics Changes - 48% of the Fortune 500 are Datadog customers, indicating strong penetration in large enterprises [7] - The median ARR for Fortune 500 customers is still less than $500,000, suggesting significant growth opportunities [8] Company Strategy and Development Direction - The company continues to focus on digital transformation and cloud migration as long-term growth drivers [24] - There is a strong emphasis on integrating AI into the Datadog platform to enhance customer value and outcomes [24] - The company aims to expand its platform to address end-to-end customer needs across software development, production, data stack, user experience, and security [24] Management's Comments on Operating Environment and Future Outlook - Management noted broad-based positive trends in demand driven by cloud migration and high growth within AI-native customer groups [4][5] - The company expects continued strong growth dynamics and is optimistic about the adoption of AI innovations by customers [25] - The outlook for Q1 2026 revenue is projected to be in the range of $951 million to $961 million, representing 25%-26% year-over-year growth [31] Other Important Information - The company released over 400 new features and capabilities in 2025, focusing on AI and observability [10][12] - The MCP server is seeing explosive growth, indicating strong customer interest in AI-driven solutions [11] Q&A Session Summary Question: Observability in the context of advancements in AI - Management believes that the increase in applications and complexity will drive demand for observability tools, as developers will need to ensure systems work correctly in production [36][38] Question: AI-native customer growth and spending - The company has seen strong growth among AI-native customers, with 19 customers spending over $1 million annually [27][46] Question: Competition and market dynamics - Management noted that competition remains stable, with no significant changes in market dynamics despite the rise of LLMs [68][70] Question: Future CapEx trends and LLM observability - Management indicated that while it is difficult to directly map CapEx to LLM observability, the overall increase in complexity will benefit the business [74][76] Question: Diversification of AI customer concentration - The company is not focused on a few large customers and expects to see more diversification within the AI cohort [78][80]

Datadog beat Wall Street estimates for fourth-quarter results on Tuesday, as rising adoption of artificial intelligence fueled stronger demand for its cloud security products, sending its shares up 10... ...

智通财经APP获悉，云监控与安全平台Datadog(DDOG.US)发布2025年第四季度及全年财报，其营收与 盈利均超出市场预期，并公布了2026财年第一季度及全年的业绩展望。 公司第四季度营收达到9.53亿美元，同比增长29.1%，超出市场预期3480万美元。Non-GAAP每股收益 为0.59美元，超出市场预期0.04美元。 公司关键客户增长客观。截至2025年12月31日，年化经常性收入超过100万美元的客户数量达603家，较 2024年同期的462家增长31%。年化经常性收入超过10万美元的客户数量约为4,310家，较2024年同期的 3,610家增长19%。 基于截至2026年2月10日的信息，公司提供了对于2026财年的业绩展望。2026年第一季度营收预计介于 9.51亿至9.61亿美元之间，市场共识预期为9.3408亿美元。 盈利能力方面，Non-GAAP运营收入为2.3亿美元，Non-GAAP运营利润率为24%。 现金流方面，运营现金流为3.27亿美元，自由现金流为2.91亿美元。截至2025年12月31日，现金及有价 证券总额为44.7亿美元。 Non-GAAP运营收入预计介于1.95亿至 ...

Core Viewpoint - Datadog, Inc. has provided its adjusted earnings and revenue guidance for Q1 and full-year 2026, indicating a positive outlook for the company’s financial performance [1][2]. Group 1: Q1 Financial Guidance - For the first quarter, Datadog expects adjusted earnings between $0.49 and $0.51 per share, with revenues projected between $951 million and $961 million [1]. - Analysts' average expectations for the quarter are earnings of $0.52 per share on revenues of $934.08 million [2]. Group 2: Full-Year 2026 Financial Guidance - For fiscal 2026, Datadog projects adjusted earnings in the range of $2.08 to $2.16 per share, with revenues expected between $4.06 billion and $4.10 billion [2]. - The consensus among analysts is for earnings of $2.34 per share on revenues of $4.10 billion for the year [2]. Group 3: Market Performance - In pre-market trading, Datadog's stock is priced at $124.99, reflecting an increase of $10.98 or 9.63 percent [3].

The software company breezes past earnings and revenue expectations for the fourth quarter. ...

Fourth quarter revenue grew 29% year-over-year to $953 million Strong growth of larger customers, with 603 $1 million+ ARR customers, up from 462 a year ago Launched Bits AI SRE Agent, Storage Management, Feature Flags, and Data Observability for general availability NEW YORK, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Datadog, Inc. (NASDAQ:DDOG), the AI-powered observability and security platform for cloud applications, today announced financial results for its fourth quarter and fiscal year ended December 31, 2025 ...