Companies /Technology
Datadog Inc - Class A
NASDAQ: DDOG Software - Application
$266.25
▼ $3.08 (−1.14%) today
Markets closed · 9:42pm ET

Datadog (DDOG) Q2 2025 Earnings

Reported Aug 7, 2025, 7:06am ET · SEC source
$0.46
Beat +12.83%
EPS · est. $0.41
$826.8M
Beat +4.53%
Revenue · est. $790.9M
+0.1%
Beating market
DDOG vs S&P since report
6 quarters
Consecutive EPS beats

How Did DDOG Stock React to Q2 2025 Earnings?

% change · around the report
−15%−10%−5%0Aug 7Aug 8report 7:06am ETearnings−0.0%−13.0%
−15%−10%−5%0Aug 7Aug 8earnings−0.0%−13.0%
DDOG −13.0%S&P 500 −0.0%
−15%−10%−5%0Aug 7Aug 8report 7:06am ETearnings+0.3%−13.0%
−15%−10%−5%0Aug 7Aug 8earnings+0.3%−13.0%
DDOG −13.0%NASDAQ +0.3%
−14%−7%0Aug 6Aug 15report 7:06am ETearnings+1.6%−18.5%
−14%−7%0Aug 6Aug 15earnings+1.6%−18.5%
DDOG −18.5%S&P 500 +1.6%
−14%−7%0Aug 6Aug 15report 7:06am ETearnings+1.5%−18.5%
−14%−7%0Aug 6Aug 15earnings+1.5%−18.5%
DDOG −18.5%NASDAQ +1.5%
−0.42%
Day of report
−4.01%
Next session
−8.70%
One week
+2.99%
30 days

S&P 500 over the same 30 days: +2.86%.

Did DDOG Beat Earnings? Q2 2025 Results

Yes. Datadog reported Q2 2025 earnings of $0.46 a share on Aug 7, 2025, beating the $0.41 consensus estimate by 12.8%. Revenue was $826.8M against a $790.9M estimate.

Datadog posted a notably strong second quarter, with revenue of $826.76 million rising 28.1% year over year and clearing the $790.90 million consensus estimate by 4.53%, while non-GAAP EPS of $0.46 beat the $0.41 analyst expectation by 12.83%. The primary engine behind the beat was broad customer expansion, with roughly 3,850 customers now generating at least $100,000 in annual recurring revenue, a 14% increase from a year ago, underscoring deepening platform adoption across the enterprise. Free cash flow of $165.35 million, representing a 20% margin, added further evidence of underlying business health even as GAAP results reflected $180.46 million in stock-based compensation and elevated R&D investment of $387.48 million, up 41% year over year. Management raised its full-year 2025 revenue outlook to a range of $3.31 billion to $3.32 billion, with non-GAAP EPS guided between $1.80 and $1.83, while Q3 revenue is expected to land between $847 million and $851 million, signaling continued confidence in demand momentum heading into the second half.

Key Takeaways
  • 28% year-over-year revenue growth
  • 14% growth in $100K+ ARR customers to approximately 3,850
  • $200 million in operating cash flow and $165 million in free cash flow
  • Non-GAAP operating margin of 20%

“Datadog had a strong second quarter, with 28% year-over-year revenue growth, $200 million in operating cash flow, and $165 million in free cash flow.”

Datadog CEO, on the earnings call

What Was Datadog's Outlook in Q2 2025?

For Q3 2025, Datadog expects revenue between $847 million and $851 million, non-GAAP operating income between $176 million and $180 million, and non-GAAP net income per share between $0.44 and $0.46 (assuming approximately 364 million weighted average diluted shares). For full year 2025, the company guides revenue between $3.312 billion and $3.322 billion, non-GAAP operating income between $684 million and $694 million, and non-GAAP net income per share between $1.80 and $1.83 (assuming approximately 364 million weighted average diluted shares).

DDOG YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$300.0M$600.0M$900.0M$645.3M$826.8MRevenue$521.6M$660.8MGross Profit$43.8M$2.6MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitNet Income
DDOG income statement, Q2 2025 versus Q2 2024
Metric Q2 2025 Q2 2024 Year over year
Revenue $826.8M $645.3M +28.1%
Gross Profit $660.8M $521.6M +26.7%
Net Income $2.6M $43.8M −94.0%

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