Datadog delivered strong financial results in with revenue increasing by a staggering 74% year over year to $406 million, surpassing Wall Street expectations and exceeding the high end of the management’s target range. It also delivered an earnings beat. The company had over 21,200 customers, up from roughly 16,400 in the same quarter last year. As Datadog continues to see clients adopt new products on the Datadog platform, its dollar-based net retention was above 130% for the 20th straight quarter, showing that it is still growing with existing customers. In Q2, they observed a slowdown in the usage growth of some of their current customers. This slowdown was concentrated in their higher-spending customers as compared to their lower-spending customers, where growth was a constant year over year. However, its expansion continued as the company went on to acquire Seekret to deliver deeper API observability, governance, and automation across the entire API lifecycle. We believe Datadog is well positioned and give it a ‘Buy’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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