Datadog Inc.
Revenue
$1B
Net Income
$45M
Datadog Inc.
Revenue
$1B
Net Income
$45M
Datadog Inc.
CIK: 0001561550
Earnings Analysis
Analyzed 11 of 12 reports
Performance Summary - Q2 2026bullish (84)not_provided
Reality-Based Sentiment Analysisbullish84/100
Based on actual market data, not just management spin. Weighted score: 10% management tone + 40% earnings beat/miss + 30% price action + 20% guidance accuracy.
Financial Performance Trend
Overall Analysis & Outlook
Over the past 5 quarters, Datadog Inc. has been showing mixed sentiment with stable guidance. Revenue has grown 104.8% during this period. The latest quarter shows neutral sentiment with neutral tone from management.
Latest Quarter Highlights:
Datadog delivered Q2 2026 revenue of $1.121 billion (35.6% YoY growth) with net income of $44.6 million, demonstrating strong execution on its AI-powered observability platform. The company generated healthy operating cash flow of $650.5 million and maintains strong gross margins of 78.6%, reflecting pricing power in its enterprise SaaS model. While management provided no forward guidance, the company's acquisition activity, expanding R&D investment (+23.3% YoY), and large deferred revenue base ($3.5B in remaining performance obligations) suggest continued confidence in growth, though the quarterly earnings swing from positive to profitable earnings indicates near-term profitability volatility.
Detailed Quarterly Reports
In-depth analysis of each quarter's earnings filing
Q2 2026
10-Q • Filed 8/6/2026
Summary
Datadog delivered Q2 2026 revenue of $1.121 billion (35.6% YoY growth) with net income of $44.6 million, demonstrating strong execution on its AI-powered observability platform. The company generated healthy operating cash flow of $650.5 million and maintains strong gross margins of 78.6%, reflecting pricing power in its enterprise SaaS model. While management provided no forward guidance, the company's acquisition activity, expanding R&D investment (+23.3% YoY), and large deferred revenue base ($3.5B in remaining performance obligations) suggest continued confidence in growth, though the quarterly earnings swing from positive to profitable earnings indicates near-term profitability volatility.
Revenue
$1.12B
Net Income
$44.558M
Guidance
Tone
Capex
$82.699M
Key Quotes
"Datadog is the AI-powered 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, service management, and many other capabilities."
"Our land-and-expand business model centered around offering products that are easy to adopt and have a very short time to value."
"Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period."
Q1 2026
10-Q • Filed 5/7/2026
Summary
Datadog delivered strong Q1 2026 results with 32% YoY revenue growth to $1.0B and net income of $52.6M, demonstrating operational leverage and profitability. The company expanded its high-value customer base (4,550 customers with $100K+ ARR, up 20% YoY) and achieved a trailing 12-month net retention rate in the low-120%s, up from high-110%s, driven by increased usage expansion. With robust free cash flow of $289M, $4.3B in marketable securities, and strategic product expansion across its AI-powered observability platform, management demonstrates confidence in sustained growth.
Revenue
$1.01B
Net Income
$52.574M
Guidance
Tone
Capex
$45.531M
Key Quotes
"As of March 31, 2026, we had approximately 33,200 customers spanning organizations of a broad range of sizes and industries, compared to approximately 30,500 as of March 31, 2025."
"As of March 31, 2026, our trailing 12-month dollar-based net retention rate was low-120%'s... The increase in our trailing 12-month dollar-based net retention rate was attributable to increased usage growth from existing customers."
"We generated revenue of $1,006.4 million and $761.6 million in the three months ended March 31, 2026 and 2025, respectively, representing year-over-year growth of 32%."
Q4 2025
10-K • Filed 2/18/2026
Summary
Datadog delivered full-year 2025 revenue of $3,427.2 million (28% YoY growth) with net income of $107.7 million, demonstrating solid profitability and strong cash generation ($1,050.1M operating cash flow, $914.7M free cash flow). The company shows healthy unit economics with 32,700 customers (+9% YoY), 120% trailing 12-month net retention rate, and significant expansion in multi-product adoption (55% using 4+ products, up from 50%). However, the 10-K is heavily weighted toward risk disclosures with extensive boilerplate language regarding cybersecurity threats, regulatory compliance, macro headwinds, and AI-related operational challenges—reflecting a defensive, cautious posture despite operational performance.
Revenue
$953.194M
Net Income
$46.567M
Guidance
Tone
Capex
$135.4M
Key Quotes
"We have grown rapidly in recent periods, with revenues for the fiscal years ended December 31, 2025, 2024 and 2023 of $3,427.2 million, $2,684.3 million, and $2,128.4 million, respectively, representing year-over-year growth of 28%"
"As of December 31, 2025, our trailing 12-month dollar-based net retention rate was about 120%. The increase in our trailing 12-month dollar-based net retention rate was attributable to increased usage growth from existing customers."
"Approximately 55% of our customers were using four or more products, up from approximately 50% a year earlier, indicating strong expansion of product adoption across our platform"
Q3 2025
10-Q • Filed 11/7/2025
Summary
Datadog delivered Q3 2025 revenue of $885.7M (up 28% YoY) with net income of $33.9M, driven by strong platform adoption and customer expansion within a 32,000-customer base. Despite revenue growth, net income declined 34% YoY due to increased R&D and sales/marketing investments, though operating cash flow remained healthy at $723.1M. Management provided no forward guidance in this 10-Q filing, maintaining a cautious stance amid macroeconomic uncertainties.
Revenue
$885.651M
Net Income
$33.885M
Guidance
Tone
Capex
$99.37M
Key Quotes
"As of September 30, 2025, we had approximately 32,000 customers spanning organizations of a broad range of sizes and industries, compared to approximately 29,200 as of September 30, 2024."
"We generated revenue of $885.7 million and $690.0 million in the three months ended September 30, 2025 and 2024, respectively, representing year-over-year growth of 28%."
"Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations."
Q2 2025
10-Q • Filed 8/8/2025
Summary
Datadog delivered Q2 2025 revenue of $826.8M (+28% YoY) with 31,400 customers, but profitability declined sharply to $2.6M net income vs $43.8M in Q2 2024 due to significantly increased R&D spending (+41% YoY). Dollar-based net retention improved to ~120% from mid-110%s, indicating strong land-and-expand dynamics, though operating margins compressed with operating loss of $35.5M vs $12.6M income prior year.
Revenue
$826.76M
Net Income
$2.647M
Guidance
Tone
Capex
$61.852M
Key Quotes
"As of June 30, 2025, we had approximately 31,400 customers spanning organizations of a broad range of sizes and industries, compared to approximately 28,700 as of June 30, 2024."
"As of June 30, 2025, our trailing 12-month dollar-based net retention rate was about 120%. As of June 30, 2024, our trailing 12-month dollar-based net retention rate was mid-110%'s."
"We generated revenue of $826.8 million and $645.3 million in the three months ended June 30, 2025 and 2024, respectively, representing year-over-year growth of 28%."
Q1 2025
10-Q • Filed 5/7/2025
Summary
Datadog delivered Q1 2025 revenue of $761.6M (+25% YoY) with net income of $24.6M, though down from $42.6M in Q1 2024 due to increased operating expenses particularly in R&D. Strong cash generation with $271.5M operating cash flow and $244.4M free cash flow demonstrated solid business fundamentals, while customer metrics showed continued expansion with trailing 12-month net dollar retention rate improving to high-110%'s and 3,770 customers with $100K+ ARR representing 88% of total ARR.
Revenue
$761.553M
Net Income
$24.642M
Guidance
Tone
Capex
$8.748M(-38.3% YoY)
Key Quotes
"Our trailing 12-month dollar-based net retention rate was in the high-110%'s. As of March 31, 2024, our trailing 12-month dollar-based net retention rate was mid-110%'s. The increase in our trailing 12-month dollar-based net retention rate was attributable to increased usage growth from existing customers."
"Approximately 83% of our customers were using more than one product as of March 31, 2025, up from approximately 82% a year earlier. Additionally, as of March 31, 2025, approximately 51% of our customers were using more than four products, up from approximately 47% a year earlier."
"We generated revenue of $761.6 million and $611.3 million in the three months ended March 31, 2025 and 2024, respectively, representing year-over-year growth of 25%."
Q4 2024
10-K • Filed 2/20/2025
Summary
Datadog delivered strong FY2024 results with $2.68B revenue (26% YoY growth) and achieved profitability with $183.7M net income. The company maintains excellent cash generation ($870.6M operating cash flow, $775.1M free cash flow) and shows healthy customer expansion metrics (high-110% dollar-based net retention rate). However, management commentary is heavily weighted toward risk factors and acknowledges macroeconomic headwinds, competitive pressures, and significant regulatory compliance challenges, particularly around AI, data privacy, and international operations.
Revenue
$737.727M
Net Income
$45.594M
Guidance
Tone
Capex
$95.5M
Key Quotes
"Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations...if economic uncertainty increases or the global economy worsens, our business, financial condition and results of operations may be harmed."
"We believe that we have built a highly differentiated platform that will position us to further extend the adoption of our platform and products...approximately 83% of our customers were using more than one product."
"Our AI-native cohort, which cohort represented approximately five percentage points of our year-over-year revenue growth for the quarter ended December 31, 2024, have rapidly increased their usage of our product and then optimized or may in the future optimize their usage."
Q3 2024
10-Q • Filed 11/8/2024
Summary
Datadog delivered Q3 2024 revenue of $690M (+26% YoY) and net income of $51.7M, demonstrating strong financial performance and a return to profitability on a quarterly basis. Operating cash flow of $605.4M and free cash flow of $534.1M reflect robust cash generation, though customer growth moderated to 29.2K customers (up from 26.8K YoY) and the trailing 12-month dollar-based net retention rate declined to mid-110%s from high-110%s, signaling slower usage expansion amid macroeconomic uncertainty.
Revenue
$690.016M
Net Income
$51.697M
Guidance
Tone
Capex
$26.958M(+56.8% YoY)
Key Quotes
"Approximately 83% of our customers were using more than one product as of September 30, 2024, up from approximately 82% a year earlier."
"The decline in our trailing 12-month dollar-based net retention rate was primarily attributable to slower usage growth from existing customers compared to prior periods, which may be related to the uncertain macroeconomic environment."
"We generated revenue of $690.0 million and $547.5 million in the three months ended September 30, 2024 and 2023, respectively, representing year-over-year growth of 26%."
Q2 2024
10-Q • Filed 8/9/2024
Summary
Datadog delivered Q2 2024 revenue of $645.3M (+27% YoY) with net income of $43.8M, demonstrating a return to profitability. However, the company faces headwinds from macroeconomic uncertainty, with trailing 12-month NRR declining from mid-120%s to mid-110%s due to slower customer usage growth, partially offset by customer expansion (3,390 customers with $100K+ ARR, up 13% YoY). Strong cash generation ($376.7M operating cash flow, $330.5M free cash flow in H1) and solid gross margins (80.8%) provide financial flexibility.
Revenue
$645.279M
Net Income
$43.824M
Guidance
Tone
Capex
$46.167M
Key Quotes
"The decline in our trailing 12-month dollar-based net retention rate was primarily attributable to slower usage growth from existing customers, which may be related to the uncertain macroeconomic environment."
"In recent quarters, we have seen slower usage growth from existing customers, which may be related to the uncertain macroeconomic environment."
"Approximately 83% of our customers were using more than one product as of June 30, 2024, up from approximately 82% a year earlier."
Q1 2024
10-Q • Filed 5/8/2024
Summary
Datadog delivered Q1 2024 revenue of $611.3M (+27% YoY) with a return to profitability ($42.6M net income vs. $24.1M loss YoY), driven by strong subscription growth and improved operating leverage. However, management noted deceleration in customer usage growth attributed to macroeconomic uncertainty, with trailing 12-month net dollar retention declining materially to mid-110%s from mid-130%s YoY, signaling slower expansion within existing customers.
Revenue
$611.253M
Net Income
$42.631M
Guidance
Tone
Capex
$25.523M
Key Quotes
"In recent quarters, we have seen slower usage growth from existing customers, which may be related to the uncertain macroeconomic environment."
"The decline in our trailing 12-month dollar-based net retention rate was primarily attributable to slower usage growth from existing customers, which may be related to the uncertain macroeconomic environment."
"Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations."
Q3 2023
10-Q • Filed 11/7/2023
Summary
Datadog delivered Q3 2023 revenue of $547.5M (up 25% YoY) with positive net income of $22.6M, marking a turnaround from Q3 2022's $26M loss. However, management highlighted concerning macro headwinds: trailing 12-month dollar-based net retention declined sharply to ~120% from >130% a year ago due to slower usage growth from existing customers amid economic uncertainty. The company maintains strong cash generation ($439.7M operating cash flow) and a growing customer base (26,800 customers), but deceleration signals warrant caution.
Revenue
$547.536M
Net Income
$22.63M
Guidance
Tone
Capex
$43.47M
Key Quotes
"In recent quarters, we have seen slower usage growth from existing customers, which may be related to the uncertain macroeconomic environment."
"As of September 30, 2023, our trailing 12-month dollar-based net retention rate was slightly below 120%. As of September 30, 2022, our trailing 12-month dollar-based net retention rate was above 130%."
"Due to our subscription model, the effect of macroeconomic conditions may not be fully reflected in our results of operations until future periods."
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