10-KPeriod: FY2024

Datadog, Inc. Annual Report, Year Ended Dec 31, 2024

Filed February 20, 2025For Securities:DDOG

Summary

Datadog, Inc. (DDOG) reported strong financial performance for the fiscal year ended December 31, 2024, with revenue reaching $2.68 billion, a 26% increase year-over-year. This growth was driven by both expanding usage from existing customers (75% of the increase) and acquiring new customers (25% of the increase). The company demonstrated significant operational efficiency, achieving net income of $183.7 million and positive operating cash flow of $870.6 million, translating to free cash flow of $775.1 million. Datadog continues to enhance its platform with new product offerings, including LLM Observability and Event Management, underscoring its commitment to technology leadership and addressing evolving market needs. The company maintains a strong customer base of approximately 30,000, with a notable increase in customers generating $100,000 or more in Annual Recurring Revenue (ARR). The dollar-based net retention rate remained strong, in the high 110% range, indicating continued expansion within its existing customer base. The company ended the year with a robust cash and marketable securities position of $4.2 billion, providing ample liquidity for future growth initiatives.

Financial Highlights

51 data points
Beta

Revenue

$2.68B

80.8% Gross Margin

Net Income

$183.75M

6.8% Net Margin

EPS (Diluted)

$0.52

Total Assets

$5.79B

Cash & Equivalents

$1.25B

Free Cash Flow

$835.88M

Financial Statements
Beta
Revenue$2.68B
Cost of Revenue$515.53M
Gross Profit$2.17B
R&D Expenses$1.15B
Operating Expenses$2.11B
Operating Income$54.28M
Net Income$183.75M
EPS (Basic)$0.55
EPS (Diluted)$0.52
Shares Outstanding (Basic)336.17M
Shares Outstanding (Diluted)358.64M

Key Highlights

  • 1Revenue grew 26% year-over-year to $2.68 billion for FY2024.
  • 2Net income turned positive at $183.7 million, a significant improvement from $48.6 million in FY2023.
  • 3Operating cash flow was strong at $870.6 million, with free cash flow reaching $775.1 million.
  • 4Customer base expanded to approximately 30,000 customers, with a growing number of high-ARR customers.
  • 5Dollar-based net retention rate remained strong in the high 110% range, signaling healthy expansion within existing clients.
  • 6Datadog continues to innovate with new product launches like LLM Observability and Event Management.
  • 7The company ended the year with substantial liquidity, holding $4.2 billion in cash and marketable securities.

Frequently Asked Questions

Datadog reported revenue of $2.68 billion for the fiscal year ended December 31, 2024, representing a 26% increase year-over-year. The company also achieved a net income of $183.7 million, a substantial improvement from $48.6 million in the prior year.

Datadog's growth is driven by a land-and-expand strategy. This includes acquiring new customers, with 25% of revenue growth attributed to new clients, and expanding within its existing customer base, which accounted for 75% of revenue growth. This expansion is evidenced by a strong dollar-based net retention rate in the high 110% range and an increasing number of customers with high Annual Recurring Revenue (ARR).

Datadog demonstrated strong financial health, generating $870.6 million in operating cash flow and $775.1 million in free cash flow for FY2024. The company ended the year with $4.2 billion in cash and marketable securities, indicating robust liquidity to fund ongoing operations and strategic initiatives.

Datadog continues to invest heavily in research and development to maintain technology leadership. Key areas of focus include expanding its observability and security platform capabilities, as demonstrated by recent product launches like LLM Observability and Event Management, and broadening its international presence to capture global market opportunities.