Summary
Datadog, Inc. reported strong growth in its first quarter of 2026, with revenue increasing 32% year-over-year to $1.01 billion. This growth was driven by both new customer acquisition and significant expansion within its existing customer base. The company demonstrated robust profitability, achieving a net income of $52.6 million, a substantial increase from the prior year's $24.6 million. Operating cash flow also saw a healthy increase, underscoring the company's strong financial performance and operational efficiency. Financially, Datadog maintains a solid liquidity position with over $4.7 billion in cash and marketable securities as of March 31, 2026. The company's balance sheet reflects continued investment in property and equipment, alongside a growing goodwill balance due to acquisitions. The expansion of its platform, with customers increasingly adopting multiple products, along with a strong dollar-based net retention rate, indicates healthy customer engagement and confidence in Datadog's offerings.
Financial Highlights
51 data points| Revenue | $1.01B |
| Cost of Revenue | $209.23M |
| Gross Profit | $797.20M |
| R&D Expenses | $435.30M |
| Operating Expenses | $789.87M |
| Operating Income | $7.33M |
| Interest Expense | $1.05M |
| Net Income | $52.57M |
| EPS (Basic) | $0.15 |
| EPS (Diluted) | $0.15 |
| Shares Outstanding (Basic) | 353.27M |
| Shares Outstanding (Diluted) | 364.73M |
Key Highlights
- 1Revenue grew 32% year-over-year to $1.01 billion in Q1 2026.
- 2Net income significantly increased to $52.6 million, compared to $24.6 million in Q1 2025.
- 3Operating cash flow improved to $334.6 million from $271.5 million in the prior year.
- 4Total customers grew to approximately 33,200 as of March 31, 2026.
- 5Customers with Annual Recurring Revenue (ARR) of $100,000 or more increased to 4,550.
- 6Dollar-based net retention rate improved to the low-120% range.
- 7Datadog ended the quarter with $426.4 million in cash and cash equivalents and $4.3 billion in marketable securities.