Companies /Technology

Datadog Inc - Class A

NASDAQ: DDOG Software - Application
$212.93
▼ $1.83 (−0.85%) today
Markets closed · 1:08am ET

Q1 2025 Earnings

Reported May 6, 2025, 7:45am ET · SEC source
$0.46
Beat +8.44%
EPS · est. $0.42
$761.6M
Beat +2.71%
Revenue · est. $741.4M
+8.0%
Beating market
DDOG vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0+3%May 6May 7report 7:45am ETearnings+0.1%−2.5%
−6%−3%0+3%May 6May 7earnings+0.1%−2.5%
DDOG −2.5%S&P 500 +0.1%
−6%−3%0+3%May 6May 7report 7:45am ETearnings−0.1%−2.5%
−6%−3%0+3%May 6May 7earnings−0.1%−2.5%
DDOG −2.5%NASDAQ −0.1%
0+5%+10%May 5May 14report 7:45am ETearnings+5.2%+11.4%
0+5%+10%May 5May 14earnings+5.2%+11.4%
DDOG +11.4%S&P 500 +5.2%
0+5%+10%May 5May 14report 7:45am ETearnings+7.6%+11.4%
0+5%+10%May 5May 14earnings+7.6%+11.4%
DDOG +11.4%NASDAQ +7.6%
+0.34%
Day of report
−0.04%
Next session
+10.61%
One week
+15.18%
30 days

S&P 500 over the same 30 days: +7.22%.

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 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. <a href="https://247wallst.com/investing/2025/03/21/3-beaten-down-stocks-mdb-spsc-and-ddog-with-up-to-125-upside-according-to-wall-street-experts/">Investors watching the stock</a> 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%

“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.”

Datadog CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2025, Datadog expects revenue between $787 million and $791 million, non-GAAP operating income between $148 million and $152 million, and non-GAAP net income per share between $0.40 and $0.42 on approximately 361 million weighted average diluted shares. For full year 2025, the company guides for revenue between $3.215 billion and $3.235 billion, non-GAAP operating income between $625 million and $645 million, and non-GAAP net income per share between $1.67 and $1.71 on approximately 362 million weighted average diluted shares.

DDOG YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$300.0M$600.0M$611.2M$761.6MRevenue$500.9M$603.9MGross Profit$42.6M$24.6MNet Income
$0$300.0M$600.0MRevenueGross ProfitNet Income

Figures from SEC filings and company reports. Not investment advice.