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Datadog continues to drive platform adoption, with 83% of customers now using two or more products
Datadog Inc. saw its shares rise nearly 6% after reporting robust earnings and revenue for its fiscal second quarter, surpassing Wall Street expectations. The cloud monitoring and security platform provider reported adjusted earnings per share of 43 cents, up from 29 cents in the same period last year, on revenue of $645 million, marking a 27% increase year-over-year. Analysts had anticipated earnings of 37 cents per share on revenue of $642.92 million.
The quarter ending June 30 saw Datadog expand its customer base to approximately 28,700, up from 26,100 a year ago. The business also reported that 3,390 of its clients now bring in $100,000 or more in recurring revenue annually, increasing from 2,990 the year before. This customer growth helped Datadog achieve a free cash flow of $144 million, with a cash flow margin of 22%. Datadog continues to drive platform adoption, with 83% of customers now using two or more products, up from 82% last year. Notably, 49% of customers use four or more products, and a quarter of its customer base utilizes six or more products.
During the quarter, Datadog launched several new features, including Log Workspaces for enhanced data analytics, Datadog On-Call for improved incident management, and the general availability of LLM Observability and Kubernetes Autoscaling. Looking ahead, Datadog forecasts Q3 revenue of $660 million to $664 million and full-year revenue between $2.62 billion and $2.63 billion.
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