Overview
- Datadog reported second-quarter revenue of $1.12 billion, up 36% year over year, and the result came in above the high end of the company’s guidance on Thursday.
- The company delivered adjusted EPS of $0.65 and raised full-year guidance to $4.45–$4.47 billion in revenue and $2.50–$2.54 in EPS.
- Shares fell roughly 17–20% in after-hours and premarket trading as investors sold into gains after a roughly 108% YTD run and cited elevated valuation as a reason to take profits.
- Operational metrics were strong with about 33,400 total customers, roughly 4,720 customers with more than $100,000 in ARR, billings of $1.18 billion, and free cash flow of $279 million.
- Management stressed AI adoption as a core growth driver, saying about 20% of customers use AI integrations but those customers represent about 80% of ARR, and it disclosed a nine-figure renewal whose reduced usage will begin in Q3 and is already included in guidance.