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Sep 30, 2023

Datadog Q3 2023 Earnings Report

Reported a 25% year-over-year revenue growth and strong growth of larger customers.

Key Takeaways

Datadog announced its Q3 2023 financial results, reporting a 25% year-over-year revenue increase to $548 million. The company saw robust new logo bookings and a continued focus on solving customers' DevSecOps challenges. There was also strong growth in larger customers.

Revenue was $547.5 million, an increase of 25% year-over-year.

GAAP operating loss was $(4.2) million; GAAP operating margin was (1)%.

Non-GAAP operating income was $130.8 million; non-GAAP operating margin was 24%.

As of September 30, 2023, Datadog had about 3,130 customers with ARR of $100,000 or more, an increase of 20% year-over-year.

Total Revenue
$548M
Previous year: $437M
+25.4%
EPS
$0.45
Previous year: $0.23
+95.7%
Total customers
3.13K
Previous year: 2.6K
+20.4%
Gross Profit
$444M
Previous year: $343M
+29.5%
Cash and Equivalents
$261M
Previous year: $295M
-11.4%
Free Cash Flow
$138M
Previous year: $67.1M
+105.9%
Total Assets
$3.54B
Previous year: $2.8B
+26.7%

Datadog

Datadog

Forward Guidance

Datadog is providing the following guidance: Revenue between $564 million and $568 million; Non-GAAP operating income between $129 million and $133 million; Non-GAAP net income per share between $0.42 and $0.44, assuming approximately 355 million weighted average diluted shares outstanding.