The earnings call reflected a generally positive sentiment with strong revenue growth, increased customer base, and significant progress in AI-related offerings. However, concerns about RPO growth deceleration and potential volatility from AI customers were noted.

Company Guidance

In the Q3 2024 earnings call, Datadog provided guidance indicating expected revenue for Q4 to be between $709 million and $713 million, reflecting a year-over-year growth rate of 20% to 21%. For the full fiscal year 2024, revenue is anticipated to be in the range of $2.656 billion to $2.660 billion, representing 25% growth year-over-year. The company expects non-GAAP operating income for Q4 to range from $163 million to $167 million, implying an operating margin of 23%, and for the full year, operating income is projected between $658 million and $662 million, with an operating margin of 25%. Non-GAAP net income per share for Q4 is projected to be $0.42 to $0.44, based on approximately 361 million weighted average diluted shares, and $1.75 to $1.77 for the fiscal year, based on around 359 million shares. Datadog also anticipates net interest and other income for 2024 to be approximately $140 million, with cash taxes expected to be between $20 million and $25 million. Capital expenditures and capitalized software are projected to be 3% to 4% of revenue for the fiscal year.

Strong Revenue Growth

Revenue reached $690 million, representing a 26% increase year-over-year and exceeding the high end of the guidance range.

Customer Expansion

The company ended the quarter with approximately 29,200 customers, up from about 26,800 a year ago. Customers with ARR over $100,000 increased to 3,490, generating 88% of ARR.

High Free Cash Flow

Datadog generated free cash flow of $204 million, with a free cash flow margin of 30%.

Platform Adoption Growth

83% of customers used 2 or more products, and 12% used 8 or more products, showing significant platform adoption.

AI Integration Growth

AI native customers contributed to over 6% of Q3 ARR, up from 4% in Q2 and 2.5% a year ago, indicating rapid growth in AI-related revenue.

Federal and Enterprise Deals

Signed 7-figure annualized deals with a leading e-commerce company in India, a major U.S. Federal Agency, and other large enterprises, demonstrating strong sales execution.

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Datadog (DDOG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DDOG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 13, 2025	2024 (Q4)	0.43 / -	0.44	―	―	―
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)	―
Nov 03, 2022	2022 (Q3)	0.16 / 0.23	0.13	76.92% (+0.10)	―

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
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%
Feb 13, 2024	$134.85	$131.68	-2.35%

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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