Datadog(US:DDOG) ZACKSยท2025-02-14 14:51Core Insights - Datadog reported fourth-quarter 2024 non-GAAP EPS of 49 cents, an 11.4% increase year-over-year, exceeding the Zacks Consensus Estimate by 13.95% [1] - The company's net revenues reached $737.73 million, reflecting a 25.1% year-over-year growth and surpassing the consensus estimate by 3.67% [1] Quarter Details - Datadog ended the fourth quarter with 30,000 customers, up from 27,300 in the prior-year period [2] - The company had 3,610 customers with an annual run rate (ARR) of $100,000 or more, a 13.2% increase year-over-year, contributing approximately 88% of total ARR [2] - 83% of customers used two or more products, while 50% utilized four or more products, up from 47% in the previous year [3] - Net revenue retention was in the high 110s, indicating increased usage and product adoption by customers [3] Operating Details - Adjusted gross margin contracted by 170 basis points year-over-year to 81.7% [4] - Research & development expenses rose 29.4% year-over-year to $211.6 million, with R&D as a percentage of revenues increasing by 1,000 basis points to 28.7% [4] - Sales and marketing expenses increased by 31.3% year-over-year to $173.3 million, representing 23.5% of revenues, an increase of 110 basis points [5] - General & administrative expenses grew 29.6% year-over-year to $38.7 million, accounting for 5.2% of revenues, an increase of 20 basis points [5] - Non-GAAP operating income was reported at $179.2 million, compared to $166.7 million in the year-ago quarter [5] Balance Sheet & Cash Flow - As of December 31, 2024, Datadog had cash, cash equivalents, restricted cash, and marketable securities totaling $4.2 billion, up from $3.2 billion as of September 30, 2024 [6] - Operating cash flow for the quarter was $265 million, an increase from $229 million in the previous quarter [6] - Free cash flow during the quarter was $241 million, compared to $204 million in the prior quarter [6] Guidance - For the first quarter of 2025, Datadog expects revenues between $737 million and $741 million, with non-GAAP EPS projected in the range of 41-43 cents [7] - For the full year 2025, revenues are anticipated to be between $3.175 billion and $3.195 billion, with non-GAAP EPS projected between $1.65 and $1.70 [8]