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Jun 30, 2022

Datadog Q2 2022 Earnings Report

Datadog's second quarter results were announced, showcasing strong revenue growth and profitability.

Key Takeaways

Datadog announced strong second quarter results with a 74% year-over-year revenue increase to $406 million. The company saw growth in larger customers and launched the Observability Pipelines product.

Revenue was $406.1 million, an increase of 74% year-over-year.

GAAP operating loss was $(3.1) million; GAAP operating margin was (1)%.

Non-GAAP operating income was $84.7 million; non-GAAP operating margin was 21%.

As of June 30, 2022, Datadog had about 2,420 customers with ARR of $100,000 or more, an increase of 54% year over year.

Total Revenue
$406M
Previous year: $234M
+73.9%
EPS
$0.24
Previous year: $0.09
+166.7%
Customers with $100k+ ARR
2.42K
Previous year: 1.61K
+50.3%
Gross Profit
$324M
Previous year: $176M
+83.7%
Cash and Equivalents
$239M
Previous year: $247M
-3.5%
Free Cash Flow
$60.2M
Previous year: $42.3M
+42.3%
Total Assets
$2.65B
Previous year: $2.08B
+27.8%

Datadog

Datadog

Forward Guidance

Datadog is providing the following guidance: Third Quarter 2022 revenue is expected to be between $410 million and $414 million. Full year 2022 revenue is expected to be between $1.61 billion and $1.63 billion.

Positive Outlook

  • Third Quarter 2022 Revenue between $410 million and $414 million.
  • Third Quarter 2022 Non-GAAP operating income between $51 million and $55 million.
  • Third Quarter 2022 Non-GAAP net income per share between $0.15 and $0.17, assuming approximately 347 million weighted average diluted shares outstanding.
  • Full Year 2022 Revenue between $1.61 billion and $1.63 billion.
  • Full Year 2022 Non-GAAP operating income between $255 million and $275 million.