Datadog(DDOG) - 2024 Q4 - Annual Results

Revenue Growth - Fourth quarter revenue grew 25% year-over-year to $738 million[5] - Fiscal year 2024 revenue was $2.68 billion, an increase of 26% year-over-year[5] - Revenue for Q4 2024 reached $737.7 million, a 25% increase from $589.6 million in Q4 2023[30] - For Q1 2025, revenue is expected to be between $737 million and $741 million[7] Customer Metrics - Datadog had 462 customers with $1 million+ ARR, up 17% from 396 a year ago[7] Profitability - GAAP net income per diluted share for Q4 2024 was $0.13, while non-GAAP net income per diluted share was $0.49[5] - Net income for Q4 2024 was $45.6 million, a decrease of 15.5% from $54.0 million in Q4 2023[30] - GAAP operating income for the year ended December 31, 2024, was $54.284 million, a significant recovery from a loss of $33.464 million in 2023[36] - Non-GAAP operating income for fiscal year 2025 is projected to be between $655 million and $675 million[11] Cash Flow - Operating cash flow for fiscal year 2024 was $871 million, with free cash flow of $775 million[2] - The company reported a net cash provided by operating activities of $265.2 million for Q4 2024, compared to $220.2 million in Q4 2023[34] - Free cash flow for the year ended December 31, 2024, was $775.103 million, an increase from $597.548 million in 2023, marking a 29.8% rise[39] - Free cash flow margin for Q4 2024 was 33%, slightly down from 34% in Q4 2023[39] Expenses - Research and development expenses for Q4 2024 were $316.3 million, a 25% increase from $253.3 million in Q4 2023[30] - Research and development expenses (GAAP) for Q4 2024 were $316.314 million, up from $253.250 million in Q4 2023, indicating a 25% increase[36] Assets and Liabilities - Cash and cash equivalents increased to $1.25 billion as of December 31, 2024, from $330.3 million in 2023[32] - Total current assets rose to $4.91 billion in 2024, compared to $3.18 billion in 2023, reflecting a 54.3% increase[32] - Total liabilities increased to $3.07 billion in 2024, up from $1.91 billion in 2023[32] Product Development and Innovation - The company plans to deliver more innovation in areas like Cloud Security and Product Analytics in 2025[2] - Datadog expanded its Database Monitoring product to include MongoDB databases[7] - The company plans to continue investing in new product development and market expansion strategies in the upcoming year[30] Gross Profit - Gross profit for Q4 2024 was $593.5 million, up 22.5% from $484.8 million in Q4 2023[30] - GAAP gross profit for Q4 2024 was $593.549 million, up from $484.820 million in Q4 2023, representing a 22.5% increase[36] - Non-GAAP gross profit for the year ended December 31, 2024, was $2.201053 billion, compared to $1.744434 billion in 2023, showing a 26.2% increase[36] Other Financial Metrics - Non-GAAP net income for Q4 2024 was $177.506 million, compared to $155.651 million in Q4 2023, reflecting a 14% growth[38] - The diluted net income per share after non-GAAP tax adjustments for the year ended December 31, 2024, was $1.82, up from $1.32 in 2023, reflecting a 38% increase[38]