Datadog's Q4 2024 earnings call highlighted strong revenue growth, significant bookings, and robust product adoption. However, there were concerns about declining operating margins and a plateau in customer usage growth. Despite these challenges, the overall performance and future outlook remain positive.

Company Guidance

During the Q4 2024 earnings call, Datadog provided comprehensive guidance for Q1 and the fiscal year 2025. The company anticipates Q1 revenues to range between $737 million and $741 million, representing a 21% year-over-year growth, with a non-GAAP operating income expected between $162 million to $166 million, implying a 22% operating margin. For the full fiscal year 2025, Datadog projects revenues between $3.175 billion and $3.195 billion, marking an 18% to 19% year-over-year growth. The company expects a non-GAAP operating income of $655 million to $675 million, with an operating margin of 21%. The guidance reflects continued investment in sales and marketing, with operating expenses anticipated to grow in the high 20s percent range year-over-year. Additionally, Datadog's net interest and other income for 2025 is projected to be approximately $120 million, and the non-GAAP tax rate is set at 21%. The guidance indicates a balance between growth investments and financial discipline, with capital expenditures expected to be 4% to 5% of revenues.

Record Revenue and Customer Growth

Datadog reported Q4 2024 revenue of $738 million, a 25% increase year-over-year, exceeding guidance. The customer base grew to approximately 30,000, up from 27,300 a year ago.

Strong ARR Milestones

Total ARR surpassed $3 billion, with infrastructure monitoring contributing over $1.25 billion, and both log management and APM products exceeding $750 million each.

High Free Cash Flow Margin

Generated free cash flow of $241 million, with a free cash flow margin of 33%.

Robust Product Adoption

83% of customers use 2 or more products, 50% use 4 or more, and 12% use 8 or more products, showing strong cross-product adoption.

Significant Bookings Growth

Achieved a new record in bookings with over $1 billion in the quarter.

Expansion in Key Accounts

Secured several 7-figure deals with major companies across various sectors, indicating strong enterprise growth.

R&D Achievements

Released over 400 new features in 2024, including significant advancements in AI, Kubernetes, and OpenTelemetry integrations.

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Datadog (DDOG) Earnings, Revenues Date & History

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DDOG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 01, 2025	2025 (Q1)	0.43 / -	0.44	―	―	―
Feb 13, 2025	2024 (Q4)	0.43 / 0.49	0.44	11.36% (+0.05)	―
Nov 07, 2024	2024 (Q3)	0.40 / 0.46	0.45	2.22% (+0.01)	―
Aug 08, 2024	2024 (Q2)	0.37 / 0.43	0.36	19.44% (+0.07)	―
May 07, 2024	2024 (Q1)	0.35 / 0.44	0.28	57.14% (+0.16)	―
Feb 13, 2024	2023 (Q4)	0.43 / 0.44	0.26	69.23% (+0.18)	―
Nov 07, 2023	2023 (Q3)	0.34 / 0.45	0.23	95.65% (+0.22)	―
Aug 08, 2023	2023 (Q2)	0.29 / 0.36	0.24	50.00% (+0.12)	―
May 04, 2023	2023 (Q1)	0.24 / 0.28	0.24	16.67% (+0.04)	―
Feb 16, 2023	2022 (Q4)	0.19 / 0.26	0.2	30.00% (+0.06)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DDOG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 13, 2025	$148.09	$135.89	-8.24%
Nov 07, 2024	$128.35	$129.79	+1.12%
Aug 08, 2024	$108.04	$114.06	+5.57%
May 07, 2024	$126.97	$112.40	-11.48%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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