Datadog Announces First Quarter 2024 Financial Results

Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its first quarter ended March 31, 2024.

“Datadog executed solidly in the first quarter, with 27% year-over-year revenue growth and continued product innovation across our platform,” said Olivier Pomel, co-founder and CEO of Datadog.

Pomel added, “Companies of every industry and size are deploying new technologies to deliver better customer experiences and business outcomes. At Datadog, we’re focused on helping our customers observe, secure, and take action on their complex systems, so they can migrate to cloud and modern DevOps with confidence.”

First Quarter 2024 Financial Highlights:

  • Revenue was $611 million, an increase of 27% year-over-year.
  • GAAP operating income was $12 million; GAAP operating margin was 2%.
  • Non-GAAP operating income was $164 million; non-GAAP operating margin was 27%.
  • GAAP net income per diluted share was $0.12; non-GAAP net income per diluted share was $0.44.
  • Operating cash flow was $212 million, with free cash flow of $187 million.
  • Cash, cash equivalents, and marketable securities were $2.8 billion as of March 31, 2024.

First Quarter & Recent Business Highlights:

  • As of March 31, 2024, we had about 3,340 customers with ARR of $100,000 or more, an increase of 15% from about 2,910 as of March 31, 2023.
  • Announcing that Amit Agarwal will be stepping down as President. Agarwal will remain in his role until the end of 2024 to ensure continuity and a successful transition. After his departure, Agarwal is expected to join the Datadog Board of Directors.
  • Announced the general availability of IT Event Management, an addition to our suite of AIOps capabilities. With Event Management, Datadog intelligently consolidates, correlates and enriches event alerts from Datadog and third-party tools into one consistent view so teams get the full context of an incident and can proactively discover, understand and resolve issues.
  • Published our annual State of DevSecOps 2024 report. The report found that a surprising amount of organizations aren’t embracing automation when it comes to securing cloud deployments.
  • Received the Google Cloud Technology Partner of the Year awards for: AppDev – CloudOps and Marketplace – Infrastructure. This is the second consecutive year Datadog has been recognized for its achievements in the Google Cloud ecosystem, providing joint customers with unified, real-time observability and security of their Google Cloud environments.
  • Announced the return of DASH, Datadog’s annual user conference, to New York City. The conference will take place June 25-26, 2024 at North Javits Center in New York City.

Second Quarter and Full Year 2024 Outlook:

Based on information as of today, May 7, 2024, Datadog is providing the following guidance:

  • Second Quarter 2024 Outlook:
    • Revenue between $620 million and $624 million.
    • Non-GAAP operating income between $134 million and $138 million.
    • Non-GAAP net income per share between $0.34 and $0.36, assuming approximately 360 million weighted average diluted shares outstanding.
  • Full Year 2024 Outlook:
    • Revenue between $2.59 billion and $2.61 billion.
    • Non-GAAP operating income between $585 million and $605 million.
    • Non-GAAP net income per share between $1.51 and $1.57, assuming approximately 361 million weighted average diluted shares outstanding.

Datadog has not reconciled its expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog’s results computed in accordance with GAAP.

About Datadog

Datadog is the observability and security platform for cloud applications. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for our customers’ entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior, and track key business metrics.