Datadog Announces Fourth Quarter and Fiscal Year 2024 Financial Results
Datadog (NASDAQ: DDOG) reported strong Q4 2024 results with revenue reaching $738 million, up 25% year-over-year. The company achieved 26% revenue growth for fiscal year 2024, totaling $2.68 billion.
Key financial metrics include Q4 non-GAAP operating income of $179 million with a 24% margin, and free cash flow of $241 million. For the full year 2024, operating cash flow was $871 million with free cash flow of $775 million.
The company expanded its customer base significantly, now serving 462 customers with ARR of $1 million or more (up 17% YoY) and approximately 3,610 customers with ARR of $100,000+ (up 13% YoY). Datadog issued $1 billion in Convertible Senior Notes due 2029 and launched several new products including Cloud SIEM and Kubernetes Active Remediation.
For FY2025, Datadog projects revenue between $3.175-$3.195 billion with non-GAAP operating income of $655-$675 million.
Datadog (NASDAQ: DDOG) ha riportato risultati solidi per il quarto trimestre del 2024, con un fatturato che ha raggiunto 738 milioni di dollari, in aumento del 25% rispetto all'anno precedente. L'azienda ha ottenuto una crescita del fatturato del 26% per l'anno fiscale 2024, per un totale di 2,68 miliardi di dollari.
I principali indicatori finanziari includono un reddito operativo non-GAAP del quarto trimestre di 179 milioni di dollari con un margine del 24%, e un flusso di cassa libero di 241 milioni di dollari. Per l'intero anno 2024, il flusso di cassa operativo è stato di 871 milioni di dollari, con un flusso di cassa libero di 775 milioni di dollari.
L'azienda ha ampliato significativamente la sua base clienti, servendo attualmente 462 clienti con un ARR di 1 milione di dollari o più (in aumento del 17% su base annua) e circa 3.610 clienti con un ARR di oltre 100.000 dollari (in aumento del 13% su base annua). Datadog ha emesso 1 miliardo di dollari in Note Convertibili Senior con scadenza nel 2029 e ha lanciato diversi nuovi prodotti, tra cui Cloud SIEM e Kubernetes Active Remediation.
Per l'anno fiscale 2025, Datadog prevede un fatturato compreso tra 3,175 e 3,195 miliardi di dollari, con un reddito operativo non-GAAP di 655-675 milioni di dollari.
Datadog (NASDAQ: DDOG) reportó resultados sólidos en el cuarto trimestre de 2024, con ingresos alcanzando 738 millones de dólares, un aumento del 25% interanual. La compañía logró un crecimiento de ingresos del 26% para el año fiscal 2024, totalizando 2,68 mil millones de dólares.
Los principales indicadores financieros incluyen un ingreso operativo no-GAAP del cuarto trimestre de 179 millones de dólares con un margen del 24%, y un flujo de caja libre de 241 millones de dólares. Para el año completo 2024, el flujo de caja operativo fue de 871 millones de dólares con un flujo de caja libre de 775 millones de dólares.
La empresa amplió significativamente su base de clientes, sirviendo actualmente a 462 clientes con un ARR de 1 millón de dólares o más (un aumento del 17% interanual) y aproximadamente 3,610 clientes con un ARR de 100,000 dólares o más (un aumento del 13% interanual). Datadog emitió 1 mil millones de dólares en Notas Senior Convertibles con vencimiento en 2029 y lanzó varios nuevos productos, incluyendo Cloud SIEM y Kubernetes Active Remediation.
Para el año fiscal 2025, Datadog proyecta ingresos entre 3,175 y 3,195 mil millones de dólares, con un ingreso operativo no-GAAP de 655 a 675 millones de dólares.
Datadog (NASDAQ: DDOG)는 2024년 4분기 강력한 실적을 보고하며, 수익이 7억 3천 8백만 달러에 달해 전년 대비 25% 증가했습니다. 이 회사는 2024 회계연도에 26%의 수익 성장을 달성하여 총 26억 8천만 달러에 이릅니다.
주요 재무 지표로는 4분기 비-GAAP 운영 수익이 1억 7천 9백만 달러로 24%의 마진을 기록했으며, 자유 현금 흐름은 2억 4천 1백만 달러입니다. 2024년 전체 연도 동안 운영 현금 흐름은 8억 7천 1백만 달러, 자유 현금 흐름은 7억 7천 5백만 달러였습니다.
회사는 고객 기반을 크게 확장하여 현재 462명의 고객에게 연간 반복 수익(ARR) 100만 달러 이상을 제공하고 있으며(전년 대비 17% 증가), 약 3,610명의 고객에게 ARR 10만 달러 이상을 제공하고 있습니다(전년 대비 13% 증가). Datadog은 2029년 만기 10억 달러의 전환 가능 고급 채권을 발행하였고, Cloud SIEM 및 Kubernetes Active Remediation을 포함한 여러 새로운 제품을 출시하였습니다.
2025 회계연도에 대해 Datadog은 수익을 31억 7천 5백만에서 31억 9천 5백만 달러 사이로 예상하며, 비-GAAP 운영 수익은 6억 5천 5백만에서 6억 7천 5백만 달러로 예상하고 있습니다.
Datadog (NASDAQ: DDOG) a annoncé de solides résultats pour le quatrième trimestre 2024, avec un chiffre d'affaires atteignant 738 millions de dollars, en hausse de 25% par rapport à l'année précédente. L'entreprise a réalisé une croissance du chiffre d'affaires de 26% pour l'exercice fiscal 2024, totalisant 2,68 milliards de dollars.
Les principaux indicateurs financiers comprennent un revenu opérationnel non-GAAP au quatrième trimestre de 179 millions de dollars avec une marge de 24%, et un flux de trésorerie libre de 241 millions de dollars. Pour l'ensemble de l'année 2024, le flux de trésorerie opérationnel s'élevait à 871 millions de dollars avec un flux de trésorerie libre de 775 millions de dollars.
L'entreprise a considérablement élargi sa base de clients, servant désormais 462 clients avec un ARR de 1 million de dollars ou plus (en hausse de 17% par rapport à l'année précédente) et environ 3 610 clients avec un ARR de plus de 100 000 dollars (en hausse de 13% par rapport à l'année précédente). Datadog a émis 1 milliard de dollars en Obligations Senior Convertibles arrivant à échéance en 2029 et a lancé plusieurs nouveaux produits, y compris Cloud SIEM et Kubernetes Active Remediation.
Pour l'exercice 2025, Datadog prévoit un chiffre d'affaires compris entre 3,175 et 3,195 milliards de dollars, avec un revenu opérationnel non-GAAP de 655 à 675 millions de dollars.
Datadog (NASDAQ: DDOG) hat starke Ergebnisse für das vierte Quartal 2024 gemeldet, mit einem Umsatz von 738 Millionen Dollar, was einem Anstieg von 25% im Vergleich zum Vorjahr entspricht. Das Unternehmen erreichte ein Umsatzwachstum von 26% für das Geschäftsjahr 2024, insgesamt 2,68 Milliarden Dollar.
Wichtige Finanzkennzahlen umfassen ein operatives Ergebnis nach Non-GAAP im vierten Quartal von 179 Millionen Dollar mit einer Marge von 24% und einen freien Cashflow von 241 Millionen Dollar. Für das gesamte Jahr 2024 betrug der operative Cashflow 871 Millionen Dollar bei einem freien Cashflow von 775 Millionen Dollar.
Das Unternehmen hat seine Kundenbasis erheblich erweitert und bedient nun 462 Kunden mit einem ARR von 1 Million Dollar oder mehr (ein Anstieg von 17% im Jahresvergleich) und etwa 3.610 Kunden mit einem ARR von über 100.000 Dollar (ein Anstieg von 13% im Jahresvergleich). Datadog hat 1 Milliarde Dollar an wandelbaren Senior Notes mit Fälligkeit 2029 ausgegeben und mehrere neue Produkte, darunter Cloud SIEM und Kubernetes Active Remediation, auf den Markt gebracht.
Für das Geschäftsjahr 2025 erwartet Datadog einen Umsatz zwischen 3,175 und 3,195 Milliarden Dollar mit einem operativen Ergebnis nach Non-GAAP von 655 bis 675 Millionen Dollar.
- Revenue grew 25% YoY to $738M in Q4 2024
- Full year revenue increased 26% to $2.68B
- Strong free cash flow of $775M for FY2024
- Customer base with $1M+ ARR grew 17% to 462
- Non-GAAP operating margin of 24% in Q4
- Healthy cash position of $4.2B
- GAAP operating margin remained low at 1% in Q4
- Slowing growth in $100k+ ARR customers (13% vs previous higher growth rates)
- Q1 2025 guidance suggests sequential revenue flatness ($737-741M vs Q4's $738M)
Insights
Datadog's Q4 2024 performance reveals a company successfully navigating the enterprise cloud monitoring space, though with notable shifts in its growth dynamics. The 25% revenue growth to
The expansion of the $1M+ ARR customer cohort to 462 customers is particularly significant, as it indicates strong enterprise penetration and reduced churn among high-value clients. However, the slower
The company's strategic positioning is strengthening through key product innovations. The launch of Cloud SIEM without requiring dedicated security teams represents a clever democratization of security tools, potentially expanding the addressable market. The expansion of Database Monitoring to include MongoDB demonstrates Datadog's commitment to comprehensive observability across modern tech stacks.
The
The FY2025 guidance of
Fourth quarter revenue grew
Strong growth of larger customers, with 462
Launched On-Call for general availability
New York, New York--(Newsfile Corp. - February 13, 2025) - Datadog, Inc. (NASDAQ: DDOG), the monitoring and security platform for cloud applications, today announced financial results for its fourth quarter and fiscal year ended December 31, 2024.
"We are pleased with our strong execution in fiscal year 2024, with
Pomel added, "Looking forward to 2025, we are excited about our plans to deliver more innovation and help our customers with their complex challenges in modern Observability, Cloud Security, Software Delivery, Cloud Service Management, and Product Analytics."
Fourth Quarter 2024 Financial Highlights:
Revenue was
$738 million , an increase of25% year-over-year.GAAP operating income was
$9 million ; GAAP operating margin was1% .Non-GAAP operating income was
$179 million ; non-GAAP operating margin was24% .GAAP net income per diluted share was
$0.13 ; non-GAAP net income per diluted share was$0.49 .Operating cash flow was
$265 million , with free cash flow of$241 million .Cash, cash equivalents and marketable securities were
$4.2 billion as of December 31, 2024.
Fiscal Year 2024 Financial Highlights:
Revenue was
$2.68 billion , an increase of26% year-over-year.GAAP operating income was
$54 million ; GAAP operating margin was2% .Non-GAAP operating income was
$674 million ; non-GAAP operating margin was25% .GAAP net income per diluted share was
$0.52 ; non-GAAP net income per diluted share was$1.82 .Operating cash flow was
$871 million , with free cash flow of$775 million .
Fourth Quarter & Recent Business Highlights:
- As of December 31, 2024, we had 462 customers with ARR of
$1 million or more, an increase of17% from 396 as of December 31, 2023. As of December 31, 2024, we had about 3,610 customers with ARR of$100,000 or more, an increase of13% from 3,190 as of December 31, 2023.
Issued
$1 billion aggregate principal amount of0% Convertible Senior Notes due 2029 in a private placement. The notes will be general unsecured obligations of Datadog and will not bear regular interest and the principal amount of the notes will not accrete. The notes will mature on December 1, 2029, unless earlier converted, redeemed or repurchased.Announced a new modern approach to Cloud SIEM, which doesn't require dedicated staff or specialized teams to activate the solution. This approach makes it easy for teams to onboard, de-risk migrations and democratize security practices while disrupting traditional models, which can be costly and resource intensive.
Expanded its Database Monitoring product to observe MongoDB databases. Datadog Database Monitoring supports the five most popular database types-MongoDB, Postgres, MySQL, SQL Server and Oracle.
At AWS re:Invent, highlighted Datadog's continued investment in its Amazon Web Services (AWS) monitoring product portfolio, which covers all aspects of a customers' tech stack, including AI/ML applications as well as serverless and containerized environments.
Announced the launch of Kubernetes Active Remediation, which builds on Datadog's automated troubleshooting capabilities to provide curated remediation guidance, best practices and end-to-end issue management for Kubernetes organizations.
First Quarter and Fiscal Year 2025 Outlook:
Based on information as of today, February 13, 2025, Datadog is providing the following guidance:
First Quarter 2025 Outlook:
Revenue between
$737 million and$741 million .Non-GAAP operating income between
$162 million and$166 million .Non-GAAP net income per share between
$0.41 and$0.43 , assuming approximately 366 million weighted average diluted shares outstanding.
Fiscal Year 2025 Outlook:
Revenue between
$3.17 5 billion and$3.19 5 billion.Non-GAAP operating income between
$655 million and$675 million .Non-GAAP net income per share between
$1.65 and$1.70 , assuming approximately 369 million weighted average diluted shares outstanding.
The dilutive effect of our
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.
Conference Call Details:
What: Datadog financial results for the fourth quarter and fiscal year 2024 and outlook for the first quarter and the fiscal year 2025
When: February 13, 2025 at 8:00 A.M. Eastern Time (5:00 A.M. Pacific Time)
Dial in: To access the call in the U.S., please register here. Callers are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
Webcast: https://investors.datadoghq.com (live and replay)
Replay: A replay of the call will be archived on the investor relations website
About Datadog
Datadog is the observability and security platform for cloud applications. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for our customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.
Forward-Looking Statements
This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Datadog’s strategy, product and platform capabilities, the growth in and ability to capitalize on long-term market opportunities including the pace and scope of cloud migration and digital transformation, gross margins and operating margins including with respect to sales and marketing, research and development expenses, net interest and other income, cash taxes, investments and capital expenditures, and Datadog’s future financial performance, including its outlook for the first quarter and fiscal year 2025 and related notes and assumptions. These forward-looking statements are based on Datadog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Datadog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to (1) our recent rapid growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our dependence on existing customers purchasing additional subscriptions and products from us and renewing their subscriptions; (5) our ability to attract new customers; (6) our ability to effectively develop and expand our sales and marketing capabilities; (7) risk of a security breach; (8) risk of interruptions or performance problems associated with our products and platform capabilities; (9) our ability to adapt and respond to rapidly changing technology or customer needs; (10) the competitive markets in which we participate; (11) risks associated with successfully managing our growth; and (12) general market, political, economic, and business conditions including concerns about reduced economic growth and associated decreases in information technology spending. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (SEC), including in the section entitled "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on November 8, 2024. Additional information will be made available in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings and reports that we may file from time to time with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.
About Non-GAAP Financial Measures
Datadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, free cash flow and free cash flow margin. Datadog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Datadog's financial performance. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Datadog's non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Datadog's reported financial results.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Datadog defines non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) employer payroll taxes on employee stock transactions; (4) amortization of issuance costs; and (5) an assumed provision for income taxes based on our long-term projected tax rate. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in Datadog's geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate. Datadog defines free cash flow as net cash provided by operating activities, minus capital expenditures and minus capitalized software development costs, if any. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.
Management believes these non-GAAP financial measures are useful to investors and others in assessing Datadog's operating performance due to the following factors:
Stock-based compensation. Datadog utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.
Amortization of acquired intangibles. Datadog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.
Employer payroll taxes on employee stock transactions. Datadog excludes employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of Datadog's common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of Datadog's business.
Amortization of issuance costs. In June 2020 and December 2024, Datadog issued
Additionally, Datadog's management believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. Free cash flow represents net cash provided by operating activities, reduced by capital expenditures and capitalized software development costs, if any. The reduction of capital expenditures and amounts capitalized for software development facilitates comparisons of Datadog's liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of our liquidity.
Operating Metrics
Datadog's number of customers with ARR of
We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. Users of our free trials or tier are not included in our customer count. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.
We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts, additional usage, usage from subscriptions for a committed contractual amount of usage that is delivered as used, and monthly subscriptions. ARR and MRR should be viewed independently of revenue, and do not represent our revenue under GAAP on a monthly or annualized basis, as they are operating metrics that can be impacted by contract start and end dates and renewal rates. ARR and MRR are not intended to be replacements or forecasts of revenue.
Datadog, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data; unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | $ | 737,727 | 589,649 | $ | 2,684,275 | $ | 2,128,359 | |||||
| Cost of revenue (1)(2)(3) | 144,178 | 104,829 | 515,531 | 409,908 | ||||||||
| Gross profit | 593,549 | 484,820 | 2,168,744 | 1,718,451 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development (1)(3) | 316,314 | 253,250 | 1,152,703 | 962,447 | ||||||||
| Sales and marketing (1)(2)(3) | 207,947 | 159,980 | 756,605 | 609,276 | ||||||||
| General and administrative (1)(3) | 59,896 | 43,848 | 205,152 | 180,192 | ||||||||
| Total operating expenses | 584,157 | 457,078 | 2,114,460 | 1,751,915 | ||||||||
| Operating income (loss) | 9,392 | 27,742 | 54,284 | (33,464 | ) | |||||||
| Other income: | ||||||||||||
| Interest expense (4) | (2,643 | ) | (1,292 | ) | (7,068 | ) | (6,302 | ) | ||||
| Interest income and other income, net | 47,077 | 30,817 | 156,724 | 100,001 | ||||||||
| Other income, net | 44,434 | 29,525 | 149,656 | 93,699 | ||||||||
| Income before provision for income taxes | 53,826 | 57,267 | 203,940 | 60,235 | ||||||||
| Provision for income taxes | 8,232 | 3,274 | 20,194 | 11,667 | ||||||||
| Net income | $ | 45,594 | 53,993 | $ | 183,746 | $ | 48,568 | |||||
| Net income per share - basic | $ | 0.13 | $ | 0.16 | $ | 0.55 | $ | 0.15 | ||||
| Net income per share - diluted | $ | 0.13 | $ | 0.15 | $ | 0.52 | $ | 0.14 | ||||
| Weighted average shares used in calculating net income per share: | ||||||||||||
| Basic | 340,320 | 328,895 | 336,172 | 324,033 | ||||||||
| Diluted | 360,940 | 352,907 | 358,636 | 350,292 | ||||||||
| (1) Includes stock-based compensation expense as follows: | ||||||||||||
| Cost of revenue | $ | 8,052 | $ | 5,126 | $ | 26,221 | $ | 17,578 | ||||
| Research and development | 97,276 | 83,489 | 363,301 | 313,096 | ||||||||
| Sales and marketing | 33,598 | 26,880 | 122,079 | 101,937 | ||||||||
| General and administrative | 19,535 | 12,626 | 58,735 | 49,689 | ||||||||
| Total | $ | 158,461 | $ | 128,121 | $ | 570,336 | $ | 482,300 |
| (2) Includes amortization of acquired intangibles as follows: | ||||||||||||
| Cost of revenue | $ | 1,104 | $ | 1,987 | $ | 5,642 | $ | 8,041 | ||||
| Sales and marketing | 207 | 208 | 825 | 825 | ||||||||
| Total | $ | 1,311 | $ | 2,195 | $ | 6,467 | $ | 8,866 |
| (3) Includes employer payroll taxes on employee stock transactions as follows: | ||||||||||||
| Cost of revenue | $ | 68 | $ | 88 | $ | 446 | $ | 364 | ||||
| Research and development | 7,410 | 6,236 | 31,134 | 21,449 | ||||||||
| Sales and marketing | 873 | 909 | 4,694 | 5,917 | ||||||||
| General and administrative | 1,653 | 1,361 | 6,852 | 4,811 | ||||||||
| Total | $ | 10,004 | $ | 8,594 | $ | 43,126 | $ | 32,541 | ||||
| (4) Includes amortization of issuance costs as follows: | ||||||||||||
| Interest expense | $ | 1,089 | $ | 849 | $ | 3,761 | $ | 3,388 | ||||
| Total | $ | 1,089 | $ | 849 | $ | 3,761 | $ | 3,388 |
Datadog, Inc.
Condensed Consolidated Balance Sheets
(In thousands; unaudited)
| December 31, 2024 | December 31, 2023 | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 1,246,983 | $ | 330,339 | ||
| Marketable securities | 2,942,076 | 2,252,559 | ||||
| Accounts receivable, net of allowance for credit losses of | 598,919 | 509,279 | ||||
| Deferred contract costs, current | 56,095 | 44,938 | ||||
| Prepaid expenses and other current assets | 67,042 | 41,022 | ||||
| Total current assets | 4,911,115 | 3,178,137 | ||||
| Property and equipment, net | 226,970 | 171,872 | ||||
| Operating lease assets | 172,512 | 126,562 | ||||
| Goodwill | 360,381 | 352,694 | ||||
| Intangible assets, net | 3,711 | 9,617 | ||||
| Deferred contract costs, non-current | 86,573 | 73,728 | ||||
| Other assets | 24,077 | 23,462 | ||||
| TOTAL ASSETS | $ | 5,785,339 | $ | 3,936,072 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable | $ | 107,731 | $ | 87,712 | ||
| Accrued expenses and other current liabilities | 127,136 | 127,631 | ||||
| Operating lease liabilities, current | 31,970 | 21,974 | ||||
| Convertible senior notes, net, current | 634,023 | - | ||||
| Deferred revenue, current | 961,853 | 765,735 | ||||
| Total current liabilities | 1,862,713 | 1,003,052 | ||||
| Operating lease liabilities, non-current | 196,905 | 138,128 | ||||
| Convertible senior notes, net, non-current | 979,282 | 742,235 | ||||
| Deferred revenue, non-current | 22,693 | 21,210 | ||||
| Other liabilities | 9,383 | 6,093 | ||||
| Total liabilities | 3,070,976 | 1,910,718 | ||||
| STOCKHOLDERS' EQUITY: | ||||||
| Common stock | 3 | 3 | ||||
| Additional paid-in capital | 2,689,013 | 2,181,267 | ||||
| Accumulated other comprehensive loss | (4,701 | ) | (2,218 | ) | ||
| Retained earnings (accumulated deficit) | 30,048 | (153,698 | ) | |||
| Total stockholders' equity | 2,714,363 | 2,025,354 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,785,339 | $ | 3,936,072 |
Datadog, Inc.
Condensed Consolidated Statements of Cash Flow
(In thousands; unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net income | $ | 45,594 | $ | 53,993 | $ | 183,746 | $ | 48,568 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 15,706 | 12,031 | 54,933 | 44,465 | ||||||||
| Accretion of discounts on marketable securities | (12,393 | ) | (15,365 | ) | (51,932 | ) | (41,621 | ) | ||||
| Amortization of issuance costs | 1,089 | 849 | 3,761 | 3,388 | ||||||||
| Net loss on conversion inducement and capped call settlement | 599 | - | 599 | - | ||||||||
| Amortization of deferred contract costs | 14,279 | 10,984 | 52,047 | 39,207 | ||||||||
| Stock-based compensation, net of amounts capitalized | 158,461 | 128,121 | 570,336 | 482,300 | ||||||||
| Non-cash lease expense | 7,002 | 7,050 | 27,263 | 26,382 | ||||||||
| Allowance for credit losses on accounts receivable | 4,473 | 2,836 | 14,847 | 11,933 | ||||||||
| Loss on disposal of property and equipment | 1,308 | 287 | 1,660 | 706 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable, net | (116,327 | ) | (111,467 | ) | (104,485 | ) | (121,661 | ) | ||||
| Deferred contract costs | (24,725 | ) | (26,869 | ) | (76,048 | ) | (69,481 | ) | ||||
| Prepaid expenses and other current assets | (16,581 | ) | (3,194 | ) | (26,654 | ) | (13,508 | ) | ||||
| Other assets | (4,639 | ) | (225 | ) | (1,003 | ) | 1,018 | |||||
| Accounts payable | 17,034 | 505 | 25,610 | 57,773 | ||||||||
| Accrued expenses and other liabilities | 4,083 | 27,753 | (1,626 | ) | (40,489 | ) | ||||||
| Deferred revenue | 170,265 | 132,937 | 197,549 | 230,974 | ||||||||
| Net cash provided by operating activities | 265,228 | 220,226 | 870,603 | 659,954 | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Purchases of marketable securities | (507,309 | ) | (546,156 | ) | (2,653,242 | ) | (2,558,013 | ) | ||||
| Maturities of marketable securities | 428,445 | 396,582 | 2,018,832 | 1,864,557 | ||||||||
| Proceeds from sale of marketable securities | 233 | 602 | 201 | 36,995 | ||||||||
| Purchases of property and equipment | (7,761 | ) | (10,395 | ) | (34,719 | ) | (27,586 | ) | ||||
| Capitalized software development costs | (16,495 | ) | (8,541 | ) | (60,781 | ) | (34,820 | ) | ||||
| Cash paid for acquisition of businesses; net of cash acquired | (6,477 | ) | (6,129 | ) | (7,131 | ) | (12,498 | ) | ||||
| Net cash used in investing activities | (109,364 | ) | (174,037 | ) | (736,840 | ) | (731,365 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Proceeds from exercise of stock options | 2,243 | 3,505 | 7,444 | 20,909 | ||||||||
| Proceeds for issuance of common stock under the employee stock purchase plan | 21,179 | 17,384 | 43,686 | 37,370 | ||||||||
| Proceeds from issuance of 2029 Convertible Senior Notes, net of issuance costs | 978,881 | - | 978,881 | - | ||||||||
| Proceeds from settlement of capped calls related to 2025 Convertible Senior Notes | 54,725 | - | 54,725 | - | ||||||||
| Purchase of capped calls related to 2029 Convertible Senior Notes | (100,900 | ) | - | (100,900 | ) | - | ||||||
| Repayments of 2025 Convertible Senior Notes | (196,704 | ) | - | (196,753 | ) | - | ||||||
| Net cash provided by financing activities | 759,424 | 20,889 | 787,083 | 58,279 | ||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5,723 | ) | 1,952 | (4,202 | ) | 1,183 | ||||||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 909,565 | 69,030 | 916,644 | (11,949 | ) | |||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period | 337,418 | 261,309 | 330,339 | 342,288 | ||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period | $ | 1,246,983 | $ | 330,339 | $ | 1,246,983 | $ | 330,339 | ||||
| RECONCILIATION OF CASH AND CASH EQUIVALENTS WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE: | ||||||||||||
| Cash and cash equivalents | $ | 1,246,983 | $ | 330,339 | $ | 1,246,983 | $ | 330,339 | ||||
| Total cash and cash equivalents | $ | 1,246,983 | $ | 330,339 | $ | 1,246,983 | $ | 330,339 | ||||
Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Reconciliation of gross profit and gross margin | ||||||||||||
| GAAP gross profit | $ | 593,549 | $ | 484,820 | $ | 2,168,744 | $ | 1,718,451 | ||||
| Plus: Stock-based compensation expense | 8,052 | 5,126 | 26,221 | 17,578 | ||||||||
| Plus: Amortization of acquired intangibles | 1,104 | 1,987 | 5,642 | 8,041 | ||||||||
| Plus: Employer payroll taxes on employee stock transactions | 68 | 88 | 446 | 364 | ||||||||
| Non-GAAP gross profit | $ | 602,773 | $ | 492,021 | $ | 2,201,053 | $ | 1,744,434 | ||||
| GAAP gross margin | 80 % | 82 % | 81 % | 81 % | ||||||||
| Non-GAAP gross margin | 82 % | 83 % | 82 % | 82 % | ||||||||
| Reconciliation of operating expenses | ||||||||||||
| GAAP research and development | $ | 316,314 | $ | 253,250 | $ | 1,152,703 | $ | 962,447 | ||||
| Less: Stock-based compensation expense | (97,276 | ) | (83,489 | ) | (363,301 | ) | (313,096 | ) | ||||
| Less: Employer payroll taxes on employee stock transactions | (7,410 | ) | (6,236 | ) | (31,134 | ) | (21,449 | ) | ||||
| Non-GAAP research and development | $ | 211,628 | $ | 163,525 | $ | 758,268 | $ | 627,902 | ||||
| GAAP sales and marketing | $ | 207,947 | $ | 159,980 | $ | 756,605 | $ | 609,276 | ||||
| Less: Stock-based compensation expense | (33,598 | ) | (26,880 | ) | (122,079 | ) | (101,937 | ) | ||||
| Less: Amortization of acquired intangibles | (207 | ) | (208 | ) | (825 | ) | (825 | ) | ||||
| Less: Employer payroll taxes on employee stock transactions | (873 | ) | (909 | ) | (4,694 | ) | (5,917 | ) | ||||
| Non-GAAP sales and marketing | $ | 173,269 | $ | 131,983 | $ | 629,007 | $ | 500,597 | ||||
| GAAP general and administrative | $ | 59,896 | $ | 43,848 | $ | 205,152 | $ | 180,192 | ||||
| Less: Stock-based compensation expense | (19,535 | ) | (12,626 | ) | (58,735 | ) | (49,689 | ) | ||||
| Less: Employer payroll taxes on employee stock transactions | (1,653 | ) | (1,361 | ) | (6,852 | ) | (4,811 | ) | ||||
| Non-GAAP general and administrative | $ | 38,708 | $ | 29,861 | $ | 139,565 | $ | 125,692 | ||||
| Reconciliation of operating income (loss) and operating margin | ||||||||||||
| GAAP operating income (loss) | $ | 9,392 | $ | 27,742 | $ | 54,284 | $ | (33,464 | ) | |||
| Plus: Stock-based compensation expense | 158,461 | 128,121 | 570,336 | 482,300 | ||||||||
| Plus: Amortization of acquired intangibles | 1,311 | 2,195 | 6,467 | 8,866 | ||||||||
| Plus: Employer payroll taxes on employee stock transactions | 10,004 | 8,594 | 43,126 | 32,541 | ||||||||
| Non-GAAP operating income | $ | 179,168 | $ | 166,652 | $ | 674,213 | $ | 490,243 | ||||
| GAAP operating margin | 1 % | 5 % | 2 % | (2) % | ||||||||
| Non-GAAP operating margin | 24 % | 28 % | 25 % | 23 % | ||||||||
Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Reconciliation of net income | ||||||||||||
| GAAP net income | $ | 45,594 | $ | 53,993 | $ | 183,746 | $ | 48,568 | ||||
| Plus: Stock-based compensation expense | 158,461 | 128,121 | 570,336 | 482,300 | ||||||||
| Plus: Amortization of acquired intangibles | 1,311 | 2,195 | 6,467 | 8,866 | ||||||||
| Plus: Employer payroll taxes on employee stock transactions | 10,004 | 8,594 | 43,126 | 32,541 | ||||||||
| Plus: Amortization of issuance costs | 1,089 | 849 | 3,761 | 3,388 | ||||||||
| Non-GAAP net income before non-GAAP tax adjustments | $ | 216,459 | $ | 193,752 | $ | 807,436 | $ | 575,663 | ||||
| Income tax effects and adjustments(1) | 38,953 | 38,101 | 153,608 | 111,672 | ||||||||
| Non-GAAP net income after non-GAAP tax adjustments | $ | 177,506 | $ | 155,651 | $ | 653,828 | $ | 463,991 | ||||
| Net income per share before non-GAAP tax adjustments - basic | $ | 0.64 | $ | 0.59 | $ | 2.40 | $ | 1.78 | ||||
| Net income per share before non-GAAP tax adjustments - diluted | $ | 0.60 | $ | 0.55 | $ | 2.25 | $ | 1.64 | ||||
| Net income per share after non-GAAP tax adjustments - basic | $ | 0.52 | $ | 0.47 | $ | 1.94 | $ | 1.43 | ||||
| Net income per share after non-GAAP tax adjustments - diluted | $ | 0.49 | $ | 0.44 | $ | 1.82 | $ | 1.32 | ||||
| Shares used in non-GAAP net income per share calculations: | ||||||||||||
| Basic | 340,320 | 328,895 | 336,172 | 324,033 | ||||||||
| Diluted | 360,940 | 352,907 | 358,636 | 350,292 | ||||||||
1) Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our long-term projected tax rate of
Datadog, Inc.
Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow
(In thousands; unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net cash provided by operating activities | $ | 265,228 | $ | 220,226 | $ | 870,603 | $ | 659,954 | ||||
| Less: Purchases of property and equipment | (7,761 | ) | (10,395 | ) | (34,719 | ) | (27,586 | ) | ||||
| Less: Capitalized software development costs | (16,495 | ) | (8,541 | ) | (60,781 | ) | (34,820 | ) | ||||
| Free cash flow | $ | 240,972 | $ | 201,290 | $ | 775,103 | $ | 597,548 | ||||
| Free cash flow margin | 33 % | 34 % | 29 % | 28 % | ||||||||
Contact Information
Yuka Broderick
Datadog Investor Relations
IR@datadoghq.com
Dan Haggerty
Datadog Public Relations
Press@datadoghq.com
Datadog is a registered trademark of Datadog, Inc.
All product and company names herein may be trademarks of their registered owners.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240623
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