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Dec 31, 2020
Datadog Q4 2020 Earnings Report
Datadog's fourth quarter results demonstrated continued high growth at scale.
Key Takeaways
Datadog reported strong Q4 2020 results with revenue increasing by 56% year-over-year and the company generated positive free cash flow. They also announced the acquisitions of Sqreen and Timber Technologies.
Revenue was $177.5 million, an increase of 56% year-over-year.
GAAP operating loss was ($8.9) million; GAAP operating margin was (5%).
Non-GAAP operating income was $18.1 million; non-GAAP operating margin was 10%.
As of December 31, 2020, Datadog had 97 customers with ARR of $1 million or more, an increase of 94% year-over-year.
Datadog
Datadog
Forward Guidance
Datadog is providing the following guidance based on information as of February 11, 2021:
Positive Outlook
- First Quarter 2021 Revenue between $185 million and $187 million.
- First Quarter 2021 Non-GAAP operating income between $8.0 million and $10.0 million.
- First Quarter 2021 Non-GAAP net income per share between $0.02 and $0.03, assuming approximately 345 million weighted average diluted shares outstanding.
- Full Year 2021 Revenue between $825 million and $835 million.
- Full Year 2021 Non-GAAP operating income between $35 and $45 million.
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.
- Our recent rapid growth may not be indicative of our future growth.
- Our history of operating losses.
- Our limited operating history.