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3d ago

Datadog Exceeds Q1 Expectations, Raises 2025 Guidance After Eppo Acquisition

The observability leader reports $762M in revenue and $0.46 EPS, surpassing forecasts, while addressing AI-driven growth variability.

A logo for Datadog is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. REUTERS/Benoit Tessier

Overview

  • Datadog reported Q1 2025 revenue of $762 million and earnings per share of $0.46, both above analyst expectations.
  • The company raised its Q2 and full-year 2025 revenue guidance, reflecting confidence in ongoing growth trends.
  • Datadog completed the acquisition of Eppo to enhance its Product Analytics capabilities, with terms undisclosed.
  • Management highlighted cloud migration and AI-driven workloads as key growth drivers but cautioned about potential volatility from AI optimization.
  • Datadog’s strong cash position of $4.2 billion supports continued investments in acquisitions and product expansion.