Datadog(US:DDOG)2025-05-07 13:03Financial Performance - Revenue for the three months ended March 31, 2025, was $761.6 million, representing a year-over-year growth of 25% compared to $611.3 million in the same period of 2024[110]. - The company incurred a net income of $24.6 million for the three months ended March 31, 2025, down from $42.6 million in the same period of 2024[110]. - Revenue for the three months ended March 31, 2025, was $761.6 million, an increase of $150.3 million or 25% compared to $611.3 million for the same period in 2024[138]. - Cash provided by operating activities for the three months ended March 31, 2025, was $271.5 million, an increase of $59.3 million compared to $212.3 million for the same period in 2024[151]. - Free cash flow for the three months ended March 31, 2025 was $244.4 million, up from $186.7 million in the same period of 2024, reflecting a 30.8% increase[156]. - Net cash provided by operating activities rose to $271.5 million in Q1 2025, compared to $212.3 million in Q1 2024, indicating a 27.8% increase[156]. Customer Metrics - The company had approximately 30,500 customers as of March 31, 2025, an increase from approximately 28,000 customers as of March 31, 2024[113]. - Approximately 3,770 customers had an annual run-rate revenue (ARR) of $100,000 or more, representing 88% of total ARR, up from 87% a year earlier[115]. - The trailing 12-month dollar-based net retention rate was in the high-110%'s as of March 31, 2025, an increase from mid-110%'s a year earlier[116]. - Approximately 83% of customers were using more than one product as of March 31, 2025, up from approximately 82% a year earlier[118]. Expenses and Costs - Cost of revenue increased by $47.5 million, or 43%, to $157.6 million for the three months ended March 31, 2025, primarily due to a $42.8 million increase in third-party cloud infrastructure hosting and software costs[140]. - Gross margin decreased to 79% for the three months ended March 31, 2025, down from 82% in the same period of 2024, primarily due to increased spending with third-party cloud infrastructure providers[141]. - Research and development expenses rose by $71.1 million, or 26%, to $341.1 million, representing 45% of revenue for the three months ended March 31, 2025[142]. - Sales and marketing expenses increased by $40.4 million, or 23%, to $214.3 million, maintaining 28% of revenue for the three months ended March 31, 2025[143]. - General and administrative expenses increased by $15.7 million, or 35%, to $61.0 million, representing 8% of revenue for the three months ended March 31, 2025[144]. Cash and Investments - As of March 31, 2025, the company had $1,079.9 million in cash and cash equivalents and $3.4 billion in marketable securities[110]. - As of March 31, 2025, the company had cash and cash equivalents of $1.1 billion and marketable securities of $3.4 billion, which are expected to support cash requirements for the next 12 months[146]. - The company issued $1.0 billion aggregate principal amount of the 2029 Notes in December 2024, with net proceeds of approximately $979.1 million after deducting costs[148]. - Net cash used in investing activities increased by $182.2 million to $333.0 million in marketable securities purchases for the three months ended March 31, 2025[153]. - Capital expenditures decreased from $14.2 million in Q1 2024 to $8.7 million in Q1 2025, a reduction of 38.5%[156]. Strategic Plans - The company plans to continue investing in sales and marketing to drive new customer acquisition and brand awareness[113]. - The company intends to evaluate strategic acquisitions and investments to drive product and market expansion[119]. Accounting and Risk Management - The company reported no material changes to critical accounting policies from the previous annual report[158]. - A hypothetical 10% change in interest rates would not have a material impact on the company's financial statements as of March 31, 2025[162]. - The company has not entered into any hedging arrangements for foreign currency risk, which may affect future results due to fluctuations in exchange rates[164]. - The fair value of the 2025 Notes is influenced by interest rate and market risks, but does not impact the company's financial position or cash flows[163]. - The estimated useful life of capitalized software development costs was increased from two to three years effective from fiscal year 2025[159].