Datadog(US:DDOG)2025-02-20 13:53Financial Performance - As of December 31, 2024, the company reported revenues of $2,684.3 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, an increase of $555,916 or 26% compared to $2,128,359 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, $48.6 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 $100,000 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 $515,531 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 $190,256 or 20% to $1,152,703 in 2024, driven by a $158.9 million increase in personnel costs[255]. - Sales and marketing expenses increased by $147,329 or 24% to $756,605 in 2024, primarily due to a $115.2 million rise in personnel costs[256]. - General and administrative expenses grew by $24,960 or 14% to $205,152 in 2024, mainly due to a $24.3 million increase in personnel costs[258]. Cash Flow and Liquidity - Cash and cash equivalents totaled $1.2 billion, with marketable securities of $2.9 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 $870.6 million compared to $659.9 million in 2023[265]. - Free cash flow for the year ended December 31, 2024, was $775.1 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 $5.5 million to $736.8 million compared to $731.4 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 $787.1 million compared to $58.3 million in 2023, driven by proceeds from the issuance of the 2029 Notes of $978.9 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 $979.1 million[222]. - The company issued $1.0 billion in aggregate principal amount of the 2029 Notes in December 2024, with net proceeds of approximately $979.1 million[262]. - The company used $196.8 million of the net proceeds from the 2029 Notes to repurchase approximately $112.0 million in aggregate principal amount of the 2025 Notes[262]. Other Financial Information - Other income, net increased by $55,957 or 60% to $149,656 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].