Datadog, Inc. Reports Third Quarter 2024 Financial Results
Datadog, Inc. (NASDAQ: DDOG), a leading monitoring and security platform for cloud applications, announced its financial results for the third quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | YoY Change |
|---|---|---|
| Revenue | $690M | +26% |
| GAAP Net Income per Share | $0.14 | - |
| Non-GAAP Net Income per Share | $0.46 | - |
| GAAP Operating Income | $20M | - |
| Non-GAAP Operating Income | $173M | - |
| Operating Cash Flow | $229M | - |
| Free Cash Flow | $204M | - |
Interpretation: Datadog achieved significant revenue growth of 26% year-over-year, reaching $690 million in Q3 2024. The company reported a GAAP net income per diluted share of $0.14 and a non-GAAP net income per diluted share of $0.46, indicating strong profitability in the quarter.
Revenue Performance by Segment
Unfortunately, the specific breakdown of revenue performance across major segments or comparisons to previous guidance was not provided in the report.
Interpretation: Without detailed segment data, it's challenging to assess individual segment performance. However, given the overall growth, core business segments likely performed well.
Key Developments and Operational Highlights
- Robust growth of larger customers, with approximately 3,490 customers having an annual recurring revenue (ARR) of $100,000 or more, a 12% increase year-over-year.
- Named a Leader in both the 2024 Gartner Magic Quadrant for Observability Platforms and the Gartner Magic Quadrant for Digital Experience Monitoring.
- Released the State of Cloud Security 2024 report, highlighting ongoing security challenges.
- Announced the general availability of Datadog Monitoring for Oracle Cloud Infrastructure.
Management Commentary
Olivier Pomel, co-founder and CEO, stated, 'Datadog executed well in the third quarter, with 26% year-over-year revenue growth. We continued to broaden our platform to help our customers observe, secure, and act on their mission-critical cloud applications.' He also expressed pride in being named a Leader in prominent industry Magic Quadrants.
Forward Guidance
For the fourth quarter of 2024, Datadog anticipates revenue between $709 million and $713 million, with non-GAAP net income per share between $0.42 and $0.44. For the full year 2024, revenue is expected to range between $2.656 billion and $2.660 billion, with non-GAAP net income per share between $1.75 and $1.77.
Stock Price Movement
Post-earnings release, Datadog’s stock experienced a 2.64% increase in the market, reflecting positive investor sentiment.
Conclusion: Datadog demonstrated strong financial performance in the third quarter of 2024, highlighted by a notable rise in revenue and customer growth. With continued expansion in its cloud monitoring capabilities and positive market recognition, the company remains well-positioned for future growth.
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