Datadog (DDOG) Reports Strong Q1 2025 Results, Outperforms Expectations

Datadog, Inc. (NASDAQ: DDOG) has released its financial results for the first quarter of 2025, showcasing a strong start to the year. The company not only exceeded its revenue expectations but also demonstrated significant growth in its customer base and maintained healthy cash flow metrics.

Datadog, Inc. Reports Double Beat with First-Quarter Results

Datadog, Inc. reported a remarkable 25% year-over-year increase in revenue for the first quarter of 2025, reaching $762 million. This figure surpassed the expected revenue of $739.37 million, reflecting the company’s strong market position and effective growth strategies. The company also reported a non-GAAP net income per diluted share of $0.46, exceeding the anticipated $0.42, which underscores its profitability amidst competitive pressures.

Key drivers of this growth include an increase in larger customers, with approximately 3,770 customers now contributing $100k or more in annual recurring revenue (ARR), a 13% rise from the previous year. This expansion in the customer base highlights Datadog’s successful efforts in scaling its operations and deepening customer engagements. Additionally, the acquisition of Eppo and Metaplane has bolstered Datadog’s product offerings, enhancing its capabilities in feature flagging and data observability respectively.

Despite reporting a GAAP operating loss of $12 million and a GAAP operating margin of -2%, the company’s non-GAAP operating income stood at $167 million with a 22% non-GAAP operating margin. These figures illustrate Datadog’s focus on strategic investments and operational efficiency, enabling it to maintain a competitive edge in the technology sector.

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Datadog Expects Revenue Between $787-791 Million for Second-Quarter 2025

Looking ahead, Datadog has provided optimistic guidance for the second quarter and full year of 2025. For Q2, the company anticipates revenue between $787 million and $791 million, with a non-GAAP net income per share ranging from $0.40 to $0.42. This outlook reflects Datadog’s confidence in its ability to sustain growth momentum and capitalize on emerging market opportunities.

For the full year 2025, Datadog projects revenue between $3.215 billion and $3.235 billion, alongside a non-GAAP net income per share of $1.67 to $1.71. This guidance is underpinned by the company’s strategic initiatives, including the expansion of its data center presence in Australia and its continuous innovation in cloud monitoring and security solutions.

In addition to financial forecasts, Datadog is gearing up for its annual DASH user conference, set to take place in June in New York City. This event is expected to further strengthen Datadog’s community and customer relationships, providing a platform for showcasing new developments and fostering collaboration among industry professionals. With its strategic acquisitions and product enhancements, Datadog is well-positioned to navigate the evolving technology landscape and deliver sustained value to its stakeholders.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.