Datadog Inc. Reports Strong Q3 2024 Revenue Growth

Datadog Inc ( (DDOG) ) has released its Q3 earnings. Here is a breakdown of the information Datadog Inc presented to its investors.

Datadog Inc. is a leading provider of observability and security solutions for cloud applications, offering a comprehensive platform that integrates infrastructure monitoring, application performance monitoring, and other key services to enhance digital transformation and cloud migration across various industries.

In the third quarter of 2024, Datadog reported a 26% year-over-year increase in revenue, reaching $690 million. The company also highlighted the expansion of its customer base, particularly those with an annual recurring revenue (ARR) of $100,000 or more, as well as new product offerings, including the general availability of Datadog Monitoring for Oracle Cloud Infrastructure.

Key financial metrics for the quarter include a GAAP operating income of $20 million and a non-GAAP operating income of $173 million, resulting in respective operating margins of 3% and 25%. Datadog’s net income per diluted share was reported at $0.14 on a GAAP basis and $0.46 on a non-GAAP basis. The company also maintained a strong cash position, with $3.2 billion in cash, cash equivalents, and marketable securities.

Strategically, Datadog was recognized as a Leader in the 2024 Gartner Magic Quadrant for both Observability Platforms and Digital Experience Monitoring, underscoring its robust product capabilities. The company also released its State of Cloud Security 2024 report, addressing ongoing challenges faced by organizations in cloud security.

Looking forward, Datadog projects continued revenue growth in the fourth quarter of 2024, with an expected range of $709 million to $713 million, and a full-year revenue forecast between $2.656 billion and $2.660 billion. The company’s management remains optimistic about its ability to capitalize on long-term market opportunities and sustain its growth trajectory.