Datadog

Datadog (DDOG) Q1 2025 Earnings

Reported May 6, 2025 at 7:45 AM ET · SEC Source

Q1 25 EPS

$0.46

BEAT +8.44%

Est. $0.42

Q1 25 Revenue

$761.6M

BEAT +2.71%

Est. $741.4M

vs S&P Since Q1 25

+112.9%

BEATING MARKET

DDOG +146.3% vs S&P +33.5%

Market Reaction

Did DDOG Beat Earnings? Q1 2025 Results

Datadog posted a strong first quarter of fiscal 2025, beating Wall Street expectations on both the top and bottom lines as its cloud observability platform continued to gain traction across enterprise customers. Revenue came in at $761.55 million, up… Read more Datadog posted a strong first quarter of fiscal 2025, beating Wall Street expectations on both the top and bottom lines as its cloud observability platform continued to gain traction across enterprise customers. Revenue came in at $761.55 million, up 24.6% year-over-year and ahead of the $741.43 million consensus, while non-GAAP EPS of $0.46 cleared the $0.42 estimate by 8.44%, driven by robust expansion in its large-customer base, which grew 13% year-over-year to approximately 3,770 customers generating $100,000 or more in ARR. Free cash flow of $244.39 million, representing a 32% margin, underscored the platform's durable unit economics even as GAAP margins compressed on higher stock-based compensation and rising infrastructure costs. Investors watching the stock will note that management guided Q2 revenue to $787 million to $791 million and set full-year 2025 revenue guidance at $3.22 billion to $3.24 billion, with non-GAAP EPS of $1.67 to $1.71, signaling continued confidence in demand for its AI-integrated monitoring capabilities.

Key Takeaways

  • 25% year-over-year revenue growth
  • 13% growth in $100K+ ARR customers to approximately 3,770
  • Strong free cash flow generation of $244 million with 32% free cash flow margin
  • Non-GAAP operating margin of 22%
24/7 Wall St

DDOG YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

“Datadog executed solidly in the first quarter, with 25% year-over-year revenue growth, $272 million in operating cash flow, and $244 million in free cash flow.”

— Olivier Pomel, Q1 2025 Earnings Press Release