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Mar 31, 2024
Datadog Q1 2024 Earnings Report
Datadog demonstrated solid execution in Q1 2024, achieving 27% year-over-year revenue growth and continuous product innovation.
Key Takeaways
Datadog announced its Q1 2024 financial results, reporting a 27% year-over-year revenue increase to $611 million. The company's growth was supported by a strong increase in larger customers and continued product innovation.
Revenue was $611 million, an increase of 27% year-over-year.
GAAP operating income was $12 million, with a GAAP operating margin of 2%.
Non-GAAP operating income was $164 million, resulting in a non-GAAP operating margin of 27%.
Operating cash flow reached $212 million, with free cash flow of $187 million.
Datadog
Datadog
Forward Guidance
Datadog is providing the following guidance: Second Quarter 2024 Outlook: Revenue between $620 million and $624 million. Non-GAAP operating income between $134 million and $138 million. Non-GAAP net income per share between $0.34 and $0.36, assuming approximately 360 million weighted average diluted shares outstanding. Full Year 2024 Outlook: Revenue between $2.59 billion and $2.61 billion. Non-GAAP operating income between $585 million and $605 million. Non-GAAP net income per share between $1.51 and $1.57, assuming approximately 361 million weighted average diluted shares outstanding.
Positive Outlook
- Revenue between $620 million and $624 million for Q2 2024
- Non-GAAP operating income between $134 million and $138 million for Q2 2024
- Non-GAAP net income per share between $0.34 and $0.36 for Q2 2024
- Revenue between $2.59 billion and $2.61 billion for full year 2024
- Non-GAAP operating income between $585 million and $605 million for full year 2024
Challenges Ahead
- Uncertainty regarding reconciling items such as stock-based compensation
- Uncertainty regarding employer payroll taxes on equity incentive plans
- Factors could be material to Datadog’s results computed in accordance with GAAP.
- Rapidly evolving global tax environment
- Significant changes in Datadog's geographic earnings mix