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Jun 30, 2021

Datadog Q2 2021 Earnings Report

Revenue growth accelerated, customer base expanded, and cloud security platform was launched.

Key Takeaways

Datadog announced a strong second quarter with revenue growth accelerating to 67% year-over-year. The company saw broad-based strength across customer segments and products. They launched the Datadog Cloud Security Platform, adding full-stack security context to Datadog's deep observability capabilities.

Revenue was $233.5 million, an increase of 67% year-over-year.

GAAP operating loss was $(9.9) million; GAAP operating margin was (4)%.

Non-GAAP operating income was $30.9 million; non-GAAP operating margin was 13%.

As of June 30, 2021, they had 1,610 customers with ARR of $100,000 or more, an increase of 59% year-over-year.

Total Revenue
$234M
Previous year: $140M
+66.8%
EPS
$0.09
Previous year: $0.05
+80.0%
Customers with $100k+ ARR
1.61K
Previous year: 1.02K
+58.6%
Gross Profit
$176M
Cash and Equivalents
$247M
Free Cash Flow
$42.3M
Total Assets
$2.08B

Datadog

Datadog

Forward Guidance

Datadog is providing the following guidance: Third Quarter 2021 Revenue between $246 million and $248 million and Full Year 2021 Revenue between $938 million and $944 million.

Positive Outlook

  • Third Quarter 2021 Revenue between $246 million and $248 million.
  • Third Quarter 2021 Non-GAAP operating income between $18 million and $20 million.
  • Third Quarter 2021 Non-GAAP net income per share between $0.05 and $0.06, assuming approximately 344 million weighted average diluted shares outstanding.
  • Full Year 2021 Revenue between $938 million and $944 million.
  • Full Year 2021 Non-GAAP operating income between $87 million and $93 million.

Challenges Ahead

  • Full Year 2021 Non-GAAP net income per share between $0.26 and $0.28, assuming approximately 344 million weighted average diluted shares outstanding.