Second quarter revenue grew 74% year-over-year to $406 million Strong growth of larger customers, with about 2,420 $100k+ ARR customers, up from 1,570 a year ago Launched Observability Pipelines product

Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its second Quarter ended June 30, 2022.

“We are pleased with our second quarter results, with 74% year-over-year revenue growth and strong profitability,” said Olivier Pomel, co-founder and CEO of Datadog. “And we were proud to be named a Leader in the 2022 Gartner Magic Quadrant for Application Performance Monitoring and Observability.”

Pomel added, “In times like these, it’s even more crucial that companies drive increased agility, efficiency, and competitive advantage. In order to do that, customers of all sizes and in all industries are progressing along their digital transformation and cloud migration journeys. And with the broadening capabilities of our end-to-end, unified platform, Datadog is uniquely capable of helping customers reach their transformation goals.”

Second Quarter 2022 Financial Highlights:

• Revenue was $406.1 million, an increase of 74% year-over-year.
• GAAP operating loss was $(3.1) million; GAAP operating margin was (1)%.
• Non-GAAP operating income was $84.7 million; non-GAAP operating margin was 21%.
• GAAP net loss per diluted share was $(0.02); non-GAAP net income per diluted share was $0.24.
• Operating cash flow was $73.0 million, with free cash flow of $60.2 million.
• Cash, cash equivalents, restricted cash, and marketable securities were $1.7 billion as of June 30, 2022.

Second Quarter & Recent Business Highlights:

• As of June 30, 2022, we had about 2,420 customers with ARR of $100,000 or more, an increase of 54% from 1,570 as of June 30, 2021.
• Announced the General Availability of Audit Trail. This new service enables customers to audit changes within the Datadog platform.
• Announced the Launch of Observability Pipelines. This new product enables organizations to take greater control of their data so they can reliably scale their observability practices.
• Named a Leader in the 2022 Gartner Magic Quadrant for Application Performance Monitoring and Observability.
• Appointed Titi Cole to the Board of Directors. Cole is Citigroup’s CEO of Legacy Franchises, overseeing the bank’s consumer business in Asia, Europe, Middle East, Africa and Mexico.
• Released the third edition of its The State of Serverless report, which is based on usage data from thousands of customers of all sizes and across all industries in Datadog’s global customer base.
• Achieved AWS Education Competency Status. This status recognizes that Datadog has demonstrated technical proficiency and success in building solutions that support mission-critical workloads of customers in the higher education, K-12 primary/secondary, research and publishing sectors. 
• Announced OpenTelemetry Protocol Support. This new capability brings the full monitoring capabilities of the Datadog platform to OpenTelemetry-instrumented applications, without the need to install a separate OpenTelemetry collector.
• Enhanced Monitoring and Security for Kubernetes. To help companies more effectively monitor and secure Kubernetes environments, Datadog has launched Container Monitoring, Application Performance Monitoring and Security for Kubernetes users. 

Third Quarter and Full Year 2022 Outlook:

Based on information as of today, August 4, 2022, Datadog is providing the following guidance:

• Third Quarter 2022 Outlook:
  • Revenue between $410 million and $414 million.
  • Non-GAAP operating income between $51 million and $55 million.
  • Non-GAAP net income per share between $0.15 and $0.17, assuming approximately 347 million weighted average diluted shares outstanding.
• Full Year 2022 Outlook:
  • Revenue between $1.61 billion and $1.63 billion.
  • Non-GAAP operating income between $255 million and $275 million.
  • Non-GAAP net income per share between $0.74 and $0.81, assuming approximately 347 million weighted average diluted shares outstanding.

Datadog has not reconciled its expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog’s results computed in accordance with GAAP.

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