Summary
Datadog, Inc. reported strong performance for the first quarter of 2024, with revenue growing 27% year-over-year to $611.3 million. This growth was driven by both new customer acquisition and expansion within the existing customer base. The company demonstrated significant improvements in profitability and cash flow, with net income of $42.6 million compared to a net loss of $24.1 million in the prior year period. Operating cash flow surged to $212.3 million, and free cash flow reached $186.7 million, highlighting robust operational efficiency. The company's balance sheet remains strong, with $282.2 million in cash and cash equivalents and $2.5 billion in marketable securities as of March 31, 2024. While the dollar-based net retention rate saw a slight decline year-over-year, it remains strong at in the mid-110% range, indicating continued expansion within its existing customer base. The company continues to invest in innovation and product development, with R&D expenses increasing 18% year-over-year.
Financial Highlights
51 data points| Revenue | $611.25M |
| Cost of Revenue | $110.10M |
| Gross Profit | $501.15M |
| R&D Expenses | $269.99M |
| Operating Expenses | $489.16M |
| Operating Income | $12.00M |
| Interest Expense | $1.08M |
| Net Income | $42.63M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.12 |
| Shares Outstanding (Basic) | 331.81M |
| Shares Outstanding (Diluted) | 355.98M |
Key Highlights
- 1Revenue increased by 27% year-over-year to $611.3 million for Q1 2024.
- 2Net income turned positive, reaching $42.6 million, a significant improvement from a net loss of $24.1 million in Q1 2023.
- 3Operating cash flow significantly increased to $212.3 million, up from $133.8 million in the prior year.
- 4Free cash flow grew to $186.7 million, demonstrating strong operational cash generation.
- 5Customers with an Annual Recurring Revenue (ARR) of $100,000 or more increased to 3,340, representing 87% of ARR.
- 6Dollar-based net retention rate remained strong, in the mid-110% range, though lower than the mid-130% range reported in the prior year.
- 7The company ended the quarter with a healthy liquidity position, holding $282.2 million in cash and cash equivalents and $2.5 billion in marketable securities.