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Dec 31, 2021

Datadog Q4 2021 Earnings Report

Demonstrated excellent revenue growth and continued business efficiencies.

Key Takeaways

Datadog announced strong Q4 2021 financial results with revenue growth of 84% year-over-year to $326 million. The company saw strong growth of larger customers and launched Sensitive Data Scanner.

Revenue was $326.2 million, an increase of 84% year-over-year.

GAAP operating income was $8.5 million; GAAP operating margin was 3%.

Non-GAAP operating income was $70.6 million; non-GAAP operating margin was 22%.

As of December 31, 2021, we had 216 customers with ARR of $1 million or more, an increase of 114% from 101 as of December 31, 2020.

Total Revenue
$326M
Previous year: $178M
+83.7%
EPS
$0.2
Previous year: $0.06
+233.3%
Customers with $100k+ ARR
216
Previous year: 1.25K
-82.8%
Gross Profit
$259M
Previous year: $137M
+89.5%
Cash and Equivalents
$271M
Previous year: $225M
+20.5%
Free Cash Flow
$107M
Previous year: $16.7M
+540.8%
Total Assets
$2.38B
Previous year: $1.89B
+25.9%

Datadog

Datadog

Forward Guidance

Datadog is providing the following guidance for Q1 2022: Revenue between $334 million and $339 million, Non-GAAP operating income between $36 million and $41 million, Non-GAAP net income per share between $0.10 and $0.12, assuming approximately 348 million weighted average diluted shares outstanding. For fiscal year 2022, Datadog expects: Revenue between $1.51 billion and $1.53 billion, Non-GAAP operating income between $160 million and $180 million, Non-GAAP net income per share between $0.45 and $0.51, assuming approximately 350 million weighted average diluted shares outstanding.

Positive Outlook

  • Revenue between $334 million and $339 million for Q1 2022.
  • Non-GAAP operating income between $36 million and $41 million for Q1 2022.
  • Non-GAAP net income per share between $0.10 and $0.12 for Q1 2022.
  • Revenue between $1.51 billion and $1.53 billion for fiscal year 2022.
  • Non-GAAP operating income between $160 million and $180 million for fiscal year 2022.

Challenges Ahead

  • Uncertainty regarding reconciling items such as stock-based compensation.
  • Potential variability of employer payroll taxes on equity incentive plans.
  • These factors could be material to Datadog’s results computed in accordance with GAAP.
  • New risks emerge from time to time.
  • It is not possible for our management to predict all risks.