Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its third quarter ended September 30, 2024.
“Datadog executed well in the third quarter, with 26% year-over-year revenue growth. We continued to broaden our platform to help our customers observe, secure, and act on their mission-critical cloud applications,” said Olivier Pomel, co-founder and CEO of Datadog.
Pomel added, “We are pleased to have been named a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms and the 2024 Gartner Magic Quadrant for Digital Experience Monitoring.”
Third Quarter 2024 Financial Highlights:
- Revenue was $690 million, an increase of 26% year-over-year.
- GAAP operating income was $20 million; GAAP operating margin was 3%.
- Non-GAAP operating income was $173 million; non-GAAP operating margin was 25%.
- GAAP net income per diluted share was $0.14; non-GAAP net income per diluted share was $0.46.
- Operating cash flow was $229 million, with free cash flow of $204 million.
- Cash, cash equivalents, and marketable securities were $3.2 billion as of September 30, 2024.
Third Quarter & Recent Business Highlights:
- As of September 30, 2024, we had about 3,490 customers with ARR of $100,000 or more, an increase of 12% from about 3,130 as of September 30, 2023.
- Named a Leader in the 2024 Gartner Magic Quadrant for Digital Experience Monitoring. Datadog’s DEM solution includes Synthetic Monitoring and Testing, Real User Monitoring (RUM), Product Analytics, Session Replay, and Error Tracking capabilities for browser and mobile applications.
- Released its State of Cloud Security 2024 report. The report found that long-lived credentials continue to be a major risk for organizations across all cloud providers.
- Announced the General Availability of Datadog Monitoring for Oracle Cloud Infrastructure, which provides visibility into Oracle Cloud Infrastructure, on-premises and other cloud environments.
- Named a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms. This is the fourth year in a row Gartner has positioned Datadog as a Leader in its Magic Quadrant.
Fourth Quarter and Full Year 2024 Outlook:
Based on information as of today, November 7, 2024, Datadog is providing the following guidance:
- Fourth Quarter 2024 Outlook:
- Revenue between $709 million and $713 million.
- Non-GAAP operating income between $163 million and $167 million.
- Non-GAAP net income per share between $0.42 and $0.44, assuming approximately 361 million weighted average diluted shares outstanding.
- Revenue between $709 million and $713 million.
- Full Year 2024 Outlook:
- Revenue between $2.656 billion and $2.660 billion.
- Non-GAAP operating income between $658 million and $662 million.
- Non-GAAP net income per share between $1.75 and $1.77, assuming approximately 359 million weighted average diluted shares outstanding.
- Revenue between $2.656 billion and $2.660 billion.
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.
