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Mar 31, 2021
Datadog Q1 2021 Earnings Report
Datadog had a strong start to the year with continued high growth at scale.
Key Takeaways
Datadog announced strong first quarter results with revenue growing 51% year-over-year to $199 million. The company closed on acquisitions of Sqreen and Timber and was named a Leader in the 2021 Gartner Magic Quadrant for Application Performance Monitoring.
Revenue was $198.5 million, an increase of 51% year-over-year.
GAAP operating loss was $(12.8) million; GAAP operating margin was (6)%.
Non-GAAP operating income was $19.6 million; non-GAAP operating margin was 10%.
As of March 31, 2021, Datadog had 1,437 customers with ARR of $100,000 or more, an increase of 50% from 960 as of March 31, 2020.
Datadog
Datadog
Forward Guidance
Datadog is providing the following guidance: Second Quarter 2021 Outlook: Revenue between $211 million and $213 million. Non-GAAP operating income between $9 million and $11 million. Non-GAAP net income per share between $0.03 and $0.04, assuming approximately 344 million weighted average diluted shares outstanding. Full Year 2021 Outlook: Revenue between $880 million and $890 million. Non-GAAP operating income between $45 million and $55 million. Non-GAAP net income per share between $0.13 and $0.16, assuming approximately 345 million weighted average shares outstanding.
Positive Outlook
- Revenue between $211 million and $213 million for Q2 2021.
- Non-GAAP operating income between $9 million and $11 million for Q2 2021.
- Non-GAAP net income per share between $0.03 and $0.04 for Q2 2021, assuming approximately 344 million weighted average diluted shares outstanding.
- Revenue between $880 million and $890 million for full year 2021.
- Non-GAAP operating income between $45 million and $55 million for full year 2021.
Challenges Ahead
- 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.
- 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.
- Recent rapid growth may not be indicative of future growth.
- History of operating losses.
- Limited operating history.