Companies /Technology

Datadog Inc - Class A

NASDAQ: DDOG Software - Application
$212.93
▼ $1.83 (−0.85%) today
Markets closed · 4:45pm ET

Q3 2025 Earnings

Reported Nov 6, 2025, 7:07am ET · SEC source
$0.55
Beat +20.38%
EPS · est. $0.46
$885.7M
Beat +3.92%
Revenue · est. $852.3M
−22.0%
Trailing market
DDOG vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−7%0+7%+14%Nov 6Nov 7report 7:07am ETearnings−2.1%+10.9%
−7%0+7%+14%Nov 6Nov 7earnings−2.1%+10.9%
DDOG +10.9%S&P 500 −2.1%
−7%0+7%+14%Nov 6Nov 7report 7:07am ETearnings−3.5%+10.9%
−7%0+7%+14%Nov 6Nov 7earnings−3.5%+10.9%
DDOG +10.9%NASDAQ −3.5%
−8%0+8%+16%Nov 5Nov 14report 7:07am ETearnings−2.0%+8.3%
−8%0+8%+16%Nov 5Nov 14earnings−2.0%+8.3%
DDOG +8.3%S&P 500 −2.0%
−8%0+8%+16%Nov 5Nov 14report 7:07am ETearnings−4.0%+8.3%
−8%0+8%+16%Nov 5Nov 14earnings−4.0%+8.3%
DDOG +8.3%NASDAQ −4.0%
+23.13%
Day of report
+0.22%
Next session
−2.54%
One week
−20.05%
30 days

S&P 500 over the same 30 days: +1.90%.

Did DDOG Beat Earnings? Q3 2025 Results

Datadog delivered a strong third quarter, beating Wall Street expectations on both the top and bottom lines as the cloud monitoring platform sustained its momentum heading into year-end. The company posted revenue of $885.65 million, up 28.4% year over year and ahead of the $852.27 million consensus estimate, while non-GAAP earnings of $0.55 per diluted share cleared the $0.46 analyst forecast by 20.38%. The key driver behind the profit beat was robust non-GAAP operating income of $207.36 million, though heavier investment in research and development, which climbed to $401.98 million from $291.80 million a year ago, pressured GAAP results and produced a slim operating loss of $5.81 million. Customer expansion reinforced the demand story, with clients generating $100,000 or more in annual recurring revenue growing 16% to approximately 4,060. Insider share sales by executives in recent weeks drew some attention, though the company's forward guidance remains constructive, with Q4 revenue expected between $912 million and $916 million and full-year 2025 non-GAAP EPS projected at $2.00 to $2.02.

Key Takeaways
  • 28% year-over-year revenue growth
  • Growth of larger customers — about 4,060 $100K+ ARR customers, up 16% year-over-year
  • Strong operating cash flow of $251 million and free cash flow of $214 million
  • Non-GAAP operating margin of 23%

“Datadog had a strong third quarter, with 28% year-over-year revenue growth, $251 million in operating cash flow, and $214 million in free cash flow.”

Datadog CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, Datadog expects revenue between $912 million and $916 million, non-GAAP operating income between $216 million and $220 million, and non-GAAP net income per share between $0.54 and $0.56 on approximately 367 million weighted average diluted shares. For full year 2025, the company expects revenue between $3.386 billion and $3.390 billion, non-GAAP operating income between $754 million and $758 million, and non-GAAP net income per share between $2.00 and $2.02 on approximately 364 million weighted average diluted shares.

DDOG YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$300.0M$600.0M$900.0M$690.0M$885.7MRevenue$552.0M$709.2MGross Profit$51.7M$33.9MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitNet Income

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