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Datadog 8-K Report, Financial Results (Aug 7, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 7, 2025
Period End
August 7, 2025
Security
DDOG
In the record · 2019–202610-K710-Q218-K44

DDOG filed 7 annual reports (10-K), 21 quarterly reports (10-Q) and 44 current reports (8-K) between 2019 and 2026.

  1. Material agreement8-K · Jun ’20Jun ’20
  2. Leadership change8-K · Mar ’26Mar ’26

01—Abstract

Summary

Summary of the 8-K filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.

Datadog reported second quarter 2025 results on August 7, 2025, with revenue of $826.8 milliona, up 28% year-over-year from $645.3 million.

Growth was driven in part by larger customers: about 3,850 customers with ARR of $100,000b or more, up 14% from about 3,390 a year earlier. Profitability was mixed. GAAP operating loss was $(35.5) million (-4% margin), versus operating income of $12.6 million a year ago, reflecting higher stock-based compensation ($180.5 million, up from $134.7 million) and higher R&D and G&A spending.

Non-GAAP operating income was $164.1 millionc (20% margin, down from 24%), and GAAP net income was only $2.6 million ($0.01 per diluted share). Operating cash flow was $200.1 million and free cash flow was $165.4 million, a 20% margin. Cash and marketable securities totaled $3.9 billion at June 30, 2025, after the company repaid $635.5 million of 2025 convertible notes.

Management guided to third-quarter 2025 revenue of $847d-851 million and full-year 2025 revenue of $3.312-3.322 billion, with non-GAAP operating income of $684-694 million for the year and non-GAAP EPS of $1.80-1.83. The company also highlighted its inclusion in the S&P 500, a fifth consecutive Gartner Magic Quadrant Leader designation, and more than 125 product announcements at DASH 2025, including AI agents and AI observability tools.

Investors should weigh the strong top-line growth and cash generation against the margin compression and the GAAP loss, which are driven largely by stock-based compensation and investment spending. The filing also reports the Q2 acquisition of businesses, which contributed about $115 million in cash outflow and added $173 million of goodwill.

02—Key points

Key Highlights

  1. Revenue of $826.8 million grew 28% year-over-year, and the company reported about 3,850 $100k+ ARR customers, up 14% from about 3,390.
  2. GAAP operating loss of $(35.5) million (-4% margin) compared with operating income of $12.6 million a year earlier, largely due to stock-based compensation rising to $180.5 million.
  3. Non-GAAP operating income was $164.1 million, a 20% margin, down from 24% in Q2 2024.
  4. Operating cash flow of $200.1 million and free cash flow of $165.4 million; cash and marketable securities were $3.9 billion at June 30, 2025.
  5. Q3 2025 guidance calls for revenue of $847-851 million and non-GAAP EPS of $0.44-0.46; full-year 2025 revenue guidance is $3.312-3.322 billion.
  6. Datadog joined the S&P 500 index and was named a Leader in the 2025 Gartner Magic Quadrant for Observability Platforms for the fifth consecutive year.
  7. Repaid $635.5 million of 2025 convertible senior notes and completed acquisitions for about $115 million in cash during the quarter, adding $173 million in goodwill.

03—Questions

Frequently Asked Questions

  1. How fast did Datadog's revenue grow in Q2 2025?

    Revenue reached $826.8 million, up 28% year-over-year from $645.3 million in Q2 2024.

  2. Why did Datadog report a GAAP operating loss?

    GAAP operating loss was $(35.5) million, driven mainly by stock-based compensation of $180.5 million, employer payroll taxes on stock transactions of $16.1 million, and higher R&D and sales spending. Non-GAAP operating income, which excludes these items, was positive at $164.1 million.

  3. What is the company's outlook for 2025?

    For Q3 2025, Datadog guided to revenue of $847-851 million and non-GAAP operating income of $176-180 million. For full-year 2025, it guided to revenue of $3.312-3.322 billion and non-GAAP operating income of $684-694 million, with non-GAAP EPS of $1.80-1.83 on about 364 million diluted shares.

  4. How strong is Datadog's cash position?

    Operating cash flow was $200.1 million and free cash flow was $165.4 million in the quarter. Cash, cash equivalents, and marketable securities totaled $3.9 billion at June 30, 2025, even after the company repaid $635.5 million of convertible notes due 2025.

  5. Is Datadog's customer base growing among larger accounts?

    Yes. Customers with ARR of $100,000 or more rose about 14% to roughly 3,850 from about 3,390 a year earlier, which indicates continued expansion among larger enterprise customers.

04—Continue

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