Datadog ‘mindful’ some customers may optimize cloud and observability usage

On the company’s earnings call, Datadog (DDOG) executives stated: “While we believe that adoption of ROI will continue to benefit Datadog in the long term, we are mindful that some of the large customers in this cohort have ramped extremely rapidly, and that these customers may optimize cloud and observability usage and increase their commitments to us over time with better terms. This may create volatility in our revenue growth in future quarters.”