We accelerated our pace of innovation throughout 2019, including the fourth quarter announcement of Security Monitoring to break down the silos between developer, operations, and security teams. ", WATCH: Crowdstrike CEO says upstart competitors don't worry him. The software-as-a-service (SaaS) company saw its revenue grow by 98% and 83% in 2018 and 2019 respectively. Datadog recorded retention in its latest quarter of 151% — a customer that spent $100 a year earlier is now shelling out $151. Datadog's annual revenues are $100-$500 million (see exact revenue data) and has 500-1,000 employees. You can find the logo assets on our press page. "There are 100 cloud categories that can do $1b in annual revenues," Lemkin wrote in a message. An extension of our user experience monitoring suite, RUM provides real-time visibility into the experience of individual users, in order to quickly spot and correct otherwise costly website performance issues. Datadog has 1,403 employees across 32 locations and $362.78 M in annual revenue in FY 2019. 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. Moskowitz initiated the stock with the equivalent of a hold rating and said, "meaningful multiple expansion will likely require excellent execution. Shares of Datadog has been riding an incredible hot streak as the stock is up more than 138% in 2020, which compares quite favorably to the 10.2% return of the S&P … About DatadogDatadog is the monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. Datadog does experience seasonality and typically wins more new customers and renewals in the fourth quarter. At end of Q1, Datadog had 960 customers with greater than $100k of ARR, generating sequential growth of 5.7%. Videoconferencing company Zoom, chat app Slack, and cybersecurity vendor Crowdstrike are the three others. 2019. About Non-GAAP Financial MeasuresDatadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative), 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, and free cash flow. Changes in operating assets and liabilities: Net cash provided by (used in) operating activities, Cash paid for acquisition of businesses; net of cash acquired, Proceeds from initial public offering, net of underwriting discounts and commissions and other offering costs, Net cash (used in) provided by financing activities, Effect of exchange rate changes on cash, cash equivalents and restricted cash, NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH, CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period, CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period. That money is being spread across many areas, including productivity apps, developer tools, security and backend infrastructure. 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. See metrics from all of your apps, tools & services in one place with Datadog's cloud monitoring as a service solution. Amortization of purchased intangibles and transaction costs related to acquisition. Similarly, Datadog views acquisition related expenses as events that are not necessarily reflective of operational performance during a period. Datadog Announces Fourth Quarter and Full Year 2019 Results, Income (loss) before provision for income taxes. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Our solution is designed to help our customers better operationalize IT security, as the security and performance of applications can no longer be the responsibility of separate and isolated teams. 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. Assumed preferred stock conversion. This represents an increase of 71% from 594 at end of Q2 2019. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period. Datadog views amortization of purchased intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. 2020. The 2019 class is particularly attractive to investors because the biggest of them show extremely high customer retention rates, meaning that they're very efficient with their sales and marketing dollars. According to Tomasz Tunguz of Redpoint Ventures, any company that's at 140% or higher is in the top decile of subscription businesses, based on a survey the firm conducted with 600 respondents. Cloud 100 2019 Dropped off in 2020. Weighted average shares used in calculating net income (loss) per share: Accounts receivable, net of allowance for doubtful accounts of $817 and $477 as of December 31, 2019 and December 31, 2018, respectively, Prepaid expenses and other current assets, Accrued expenses and other current liabilities, TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT). Datadog is a monitoring service for cloud-scale applications, providing monitoring of servers, databases, tools, and services, through a SaaS-based data analytics platform. No other year accounts for more than two cloud companies in the 11-digit club. Three Months. Operating Metrics Datadog defines free cash flow as Net cash provided by (used in) operating activities, minus capital expenditures and minus capitalized software development costs. 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. Datadog’s number of customers with ARR of $100,000 or more and number of customers with ARR of $1 million or more are based on the ARR of each customer, as of the last month of the quarter. All Rights Reserved. The new crop brings to 16 the total number of cloud software companies in the 11-digit club. Eric Yuan, CEO of Zoom Video Communications poses for a photo after he took part in a bell ringing ceremony at the NASDAQ MarketSite in New York, April 18, 2019. After Datadog's first-day pop on Thursday, the provider of analytics and monitoring tools became the fourth cloud software company to go public in 2019 and attain a market cap of at least $10 billion. Condensed Consolidated Statements of Operations, (In thousands, except per share data; unaudited), Condensed Consolidated Statements of Cash Flow, Reconciliation from GAAP to Non-GAAP Results, Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow, AJ Ljubich, CFA Revenue was $131.2 million, an increase of 87% year-over-year. While 14 of those companies have gone public since the beginning of 2012, this is the first year with more than two that reached $10 billion in value. Datadog, Zoom, Slack and Crowdstrike, this year's entrants, all have very high retention rates. On a price-to-sales basis, Zoom, Crowdstrike and Datadog are by far the most expensive software companies across the entire market, with each valued at 39 times revenue or higher, according to FactSet. Datadog is a registered trademark of Datadog, Inc. All product and company names herein may be trademarks of their registered owners. Datadog became the fourth cloud software company to debut this year and reach a $10 billion valuation. ET Contents: Prepared Remarks. Three Months Six Months Ended June 30, Ended June 30, 2020 2019 2020 2019 Revenue $ 140,012 $ 83,222 $ 271,260 $ 153,272 Announced the general availability of Network Performance Monitoring (NPM). With rapid expansion and high retention comes high multiples — and more risk. Moreover, we operate in a very competitive and rapidly changing environment. Announcements included but were not limited to, the introduction of always-on Profiling for APM, a new integration with SAP HANA, support for Amazon EKS on AWS Fargate, integration with Azure DevOps, support for AWS CloudFormation Registry and CLI, the introduction of Metrics Correlations, and updated AWS Lambda integration to include Provisioned Concurrency, enhanced metrics, and distributed tracing. Datadog annual net income for 2019 was $-0.017B, a 55.27% increase from 2018. Datadog's revenue increased 82% to $83 million in the quarter that ended in June, putting it right up there with its 2019 peers. “The quarter closes an excellent year, in which we generated 83% revenue growth and approximately breakeven free cash flow. MRR is defined as the revenue run-rate of subscription agreements from all customers for the last month of the period, including committed amounts and any additional usage. “We are very pleased with our fourth quarter performance, which was highlighted by 85% year-over-year revenue growth, and very strong platform adoption,” said Olivier Pomel, co-founder and CEO of Datadog. New risks emerge from time to time. On forbes lists #5. Datadog's revenue increased 82% to $83 million in the quarter that ended in June, putting it right up there with its 2019 peers. Celebration at the Nasdaq during the Datadog IPO, September 19, 2019. 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 and amortization of stock-based compensation capitalized in software development costs. Our Simple Network Management Protocol (SNMP) integration, a component of NPM, is available in beta and extends visibility to physical network devices. Zoom posted 96% growth in its most recent quarter, just ahead of Crowdstrike at 94%. Forward-Looking Statements While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period. The top 10 competitors average 587.5M. Datadog annual net income for 2017 was $-0.003B, … Slack chose the direct listing route, so investors could sell right away, and they've been doing plenty of it since the debut in June. 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. Last week, Datadog reported Q4 revenue jumped 84%. Datadog had its initial public offering on September 10, 2019. All good ones at least.". "All the IPOs are on track to get that. Over the last four quarters, Datadog, Inc.'s revenue has grown by 85.9%. Continued product innovations, including enhanced APM functionality, deeper visibility into containers and serverless environments, and enhanced machine learning capabilities. Eventually, early investors are going to want to lock in some gains, creating the potential for a flood of new shares on the market and a corresponding price drop. An extension of our leading infrastructure monitoring, NPM enables visibility into network flows in granular detail across public cloud, private cloud, and on-premise environments, to provide immediate insight into performance and dependencies. ARR and MRR should be viewed independently of revenue as they are operating metrics and are not intended to be replacements or forecasts of revenue. Datadog does not believe this is reflective of on-going results and therefore adjusted for this benefit. Datadog Investor Relations Image source: The Motley Fool. Consequently, non-GAAP diluted net income per share for the year ended December 31, 2019 has been calculated assuming the conversion of all outstanding shares of preferred stock into shares of Class B common stock. All new products are available in the same tightly integrated platform, offering the benefits of metrics, traces, and logs in one place with cross-correlations between them. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures. Announced the general availability of Real User Monitoring (RUM). See insights on Datadog including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. Nine Months. According to Gartner, the global market for public cloud services will climb 17.5% this year to $214.3 billion. Fiscal year is January-December. As a result of Datadog’s initial public offering, all outstanding shares of preferred stock were automatically converted into shares of Class B common stock. Specifically, in Q3 2020's revenue was $154.7M; in Q2 2020, it was $140M; in Q3 2019, it was $95.9M; in Q2 2019, Datadog, Inc.'s revenue … Subscription agreements are primarily monthly or annual, with some quarterly, semi-annual and multi-year. Datadog net income for the twelve months ending June 30, 2020 was $0.003B, a 119.28% decline year-over-year. "Recently, we've seen a series of product-driven companies building huge customer bases with tremendous account expansion and terrific sales efficiency," Tunguz wrote in a post on Aug. 26, about Datadog's IPO filing. Datadog's revenue rose 83% to $362.8 million in 2019, but its net loss widened from $10.8 million to $16.7 million. It's just the latest sign that public market investors are hungry and willing to pay up for high-growth technology companies as long as the financials make sense, even as they shun cash-burning consumer businesses like Uber, Lyft and WeWork. Datadog lost $13 million during the first six months of 2019, after earning $498,000 during the same time period a year earlier. Crowdstrike's expiration is set for December. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. "Datadog is no exception.". Try it for free. NEW YORK, Feb. 13, 2020 (GLOBE NEWSWIRE) -- Datadog, Inc. (NASDAQ:DDOG), the monitoring and analytics platform for developers, IT operations teams and business users in the cloud age, today announced financial results for its fourth quarter ended December 31, 2019. (866) 329-4466IR@datadog.com, Martin Bergman We disclaim any obligation to update forward-looking statements. Non-cash benefit related to one-time tax adjustment. 2017 2018 2019 5-year trend; Sales/Revenue --100.76M: 198.08M: 362.78M This nice run includes a 110% climb in the past six months as the monitoring and security platform showcased strong growth within the broader … 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 business depends on our 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 manage our growth and (12) general market, political, economic, and business conditions. According to studies, the infrastructure monitoring and application performance management (APM) markets in which Datadog competes will grow annually by 6.6% and 11.84%, respectively, over the next several years. In contrast, Datadog grew its revenue by 96.6% and 79.5% y… At end of Q2, Datadog had 1,015 customers with ARR of $100k or more. In Q1 2019, Datadog had 508 of these large customers, for … 2019. Adjustments to reconcile net income (loss) to net cash provided by operating activities: Amortization of discounts or premiums on marketable securities, Stock-based compensation, net of amounts capitalized, Provision for accounts receivable allowance, Loss on disposal of property and equipment. Ended September 30, Ended September 30, 2020. 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 filed with the SEC on November 13, 2019. How fast is Datadog growing? Datadog, Inc. (NASDAQ: DDOG) Q4 2019 Earnings Call Feb 13, 2020 , 5:00 p.m. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. The company in Q4 added a record 1,000 net new customers, almost twice as many as in the year-ago quarter. All values USD millions. We are proud of what we have accomplished this year and remain committed to delivering continued innovation to solve our customer pain points.”. Fourth quarter revenue grew 85% year-over-year to $114 million Strong growth of larger customers, with 858 $100k+ ARR customers versus 453 a year-ago Announced Security Monitoring to break... | November 25, 2020 As of Sep 11, 2019. 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. Datadog defines non-GAAP gross profit, non-GAAP operating expenses (sales and marketing, research and development, general and administrative), non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss) and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of purchased intangibles and (3) non-cash benefit related to a one-time tax adjustment. Got a confidential news tip? We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. It is classified as operating in the Data Centers & Hosting Services industry. We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. 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 future financial performance, including our outlook for the first quarter and for the full year of 2020. Datadog annual net income for 2018 was $-0.011B, a 318.75% increase from 2017. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Launched the Datadog Partner Network, a new program expanding Datadog’s support for channel partners. A Division of NBCUniversal. Data is a real-time snapshot *Data is delayed at least 15 minutes. Other years have had more tech IPOs than 2019, but there's never been a year that's minted so many big ones. Non-GAAP operating income between $48.5 and $50.5 million. Revenue between $588 million and $590 million. You should not rely on the revenue growth of any prior quarterly or annual period as an indication of our future performance. Crowdstrike reported a retention rate of 147% as of January, Slack's was 143% and Zoom was at 140%. 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. This represents an increase of 71 % from 594 at end of Q2 2019 2019... January, Slack 's was 143 % and Zoom was at 140 % some cases where they have separate terms! System Integrators increase from 2018 three others Q1, datadog views acquisition related expenses as events that are necessarily! Number of cloud software companies in the Data Centers & Hosting services industry continued innovation to solve customer! 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