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Datadog(DDOG) - 2024 Q4 - Annual Report
DDOGDatadog(DDOG)2025-02-20 13:53
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Financial Performance - As of December 31, 2024, the company reported revenues of 2,684.3million,representingayear−over−yeargrowthof262,684.3 million, representing a year-over-year growth of 26% from 2,128.4 million in 2023[219]. - Revenue for the year ended December 31, 2024, was 2,684,275,anincreaseof2,684,275, an increase of 555,916 or 26% compared to 2,128,359in2023[252].−Approximately752,128,359 in 2023[252]. - Approximately 75% of the revenue increase was attributed to growth from existing customers, while 25% was from new customers[252]. - The company incurred net losses of 183.7 million, 48.6million,and48.6 million, and (50.2) million for the fiscal years ended December 31, 2024, 2023, and 2022, respectively[219]. Customer Metrics - The company had approximately 30,000 customers as of December 31, 2024, an increase from approximately 27,300 customers in 2023[226]. - The annual run-rate revenue (ARR) from customers with 100,000ormoreincreasedtoapproximately3,610,representing88100,000 or more increased to approximately 3,610, representing 88% of total ARR, up from 3,190 customers in 2023[228]. - The trailing 12-month dollar-based net retention rate was in the high-110% range as of December 31, 2024, an increase from the mid-110% range in 2023[229]. - Approximately 83% of customers used more than one product as of December 31, 2024, indicating strong product adoption[231]. Geographic Expansion - The company intends to expand geographically, particularly in EMEA and APAC, despite potential short-term adverse effects on operating results[233]. - Revenue from regions outside of North America accounted for approximately 30% of total revenue for both 2024 and 2023[233]. Expenses and Costs - Cost of revenue increased by 105,623 or 26% to 515,531in2024,primarilyduetoa515,531 in 2024, primarily due to a 78.5 million increase in third-party cloud infrastructure hosting and software costs[253]. - Research and development expenses rose by 190,256or20190,256 or 20% to 1,152,703 in 2024, driven by a 158.9millionincreaseinpersonnelcosts[255].−Salesandmarketingexpensesincreasedby158.9 million increase in personnel costs[255]. - Sales and marketing expenses increased by 147,329 or 24% to 756,605in2024,primarilyduetoa756,605 in 2024, primarily due to a 115.2 million rise in personnel costs[256]. - General and administrative expenses grew by 24,960or1424,960 or 14% to 205,152 in 2024, mainly due to a 24.3millionincreaseinpersonnelcosts[258].CashFlowandLiquidity−Cashandcashequivalentstotaled24.3 million increase in personnel costs[258]. Cash Flow and Liquidity - Cash and cash equivalents totaled 1.2 billion, with marketable securities of 2.9billionasofDecember31,2024,indicatingstrongliquidity[260].−NetcashprovidedbyoperatingactivitiesfortheyearendedDecember31,2024,increasedby2.9 billion as of December 31, 2024, indicating strong liquidity[260]. - Net cash provided by operating activities for the year ended December 31, 2024, increased by 210.6 million to 870.6millioncomparedto870.6 million compared to 659.9 million in 2023[265]. - Free cash flow for the year ended December 31, 2024, was 775.1million,anincreasefrom775.1 million, an increase from 597.5 million in 2023[270]. - Net cash used in investing activities for the year ended December 31, 2024, increased by 5.5millionto5.5 million to 736.8 million compared to 731.4millionin2023,primarilyduetoanincreaseinpurchasesofmarketablesecurities[266].−NetcashprovidedbyfinancingactivitiesfortheyearendedDecember31,2024,increasedby731.4 million in 2023, primarily due to an increase in purchases of marketable securities[266]. - Net cash provided by financing activities for the year ended December 31, 2024, increased by 728.8 million to 787.1millioncomparedto787.1 million compared to 58.3 million in 2023, driven by proceeds from the issuance of the 2029 Notes of 978.9million[267].FinancingActivities−Thecompanycompletedaprivateofferingof978.9 million[267]. Financing Activities - The company completed a private offering of 1.0 billion aggregate principal amount of convertible senior notes in December 2024, with net proceeds of approximately 979.1million[222].−Thecompanyissued979.1 million[222]. - The company issued 1.0 billion in aggregate principal amount of the 2029 Notes in December 2024, with net proceeds of approximately 979.1million[262].−Thecompanyused979.1 million[262]. - The company used 196.8 million of the net proceeds from the 2029 Notes to repurchase approximately 112.0millioninaggregateprincipalamountofthe2025Notes[262].OtherFinancialInformation−Otherincome,netincreasedby112.0 million in aggregate principal amount of the 2025 Notes[262]. Other Financial Information - Other income, net increased by 55,957 or 60% to 149,656in2024,primarilydrivenbya149,656 in 2024, primarily driven by a 51.9 million increase in interest income[259]. - The company reported an increase of $88.0 million in stock-based compensation as part of the increase in non-cash charges[265]. - A hypothetical 10% relative change in interest rates would not have a material impact on the company's consolidated financial statements[282]. - The company has not entered into any hedging arrangements with respect to foreign currency risk, although it may choose to do so in the future[285].