Datadog(US:DDOG) Zhao Yin Guo Ji·2026-02-11 01:24Investment Rating - The report maintains a "BUY" rating for Datadog (DDOG US), indicating a potential return of over 15% over the next 12 months [20]. Core Insights - Datadog reported total revenue of US$953.2 million for 4Q25, reflecting a 29.2% year-over-year growth, which is 4% above both the forecast and Bloomberg consensus [1] - The company experienced strong revenue growth from both non-AI customers and AI-native customers, with non-GAAP net income after tax adjustments reaching US$217.4 million, up 22.5% year-over-year [1] - For 2025, total revenue is projected to grow by 27.7% year-over-year to US$3.4 billion, with a non-GAAP operating profit margin (OPM) of 22.4% [1] - Management has guided for 1Q26 revenue growth of 25-26% year-over-year, with a conservative full-year revenue growth forecast of 18-20% for 2026 [1] Financial Performance - Datadog's platform had over 32,700 customers by the end of 4Q25, a 9% increase year-over-year, with significant growth in large customers [8] - The company reported a remaining performance obligation (RPO) of US$3.46 billion, up 52% year-over-year, indicating strong future revenue visibility [8] - The net dollar-based retention rate was approximately 120% in 4Q25, consistent with the previous quarter and up from high-110% in 4Q24 [8] Revenue Forecasts - Revenue projections for FY26E are set at US$4.1 billion, representing a year-over-year growth of approximately 18-20% [10] - Adjusted net profit for FY26E is expected to be between US$779.2 million and US$792.7 million, with an adjusted EPS of US$2.08-2.16 [10] Target Price and Valuation - The target price for Datadog has been adjusted to US$196.9 from US$203.7, based on a valuation of 16.3x 2026E EV/sales [1][2] - The current price of Datadog is US$114.01, indicating a potential upside of 72.7% to the target price [2]