DDOG Earnings Prediction
The chart below shows how DDOG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DDOG sees a +2.71% change in stock price 10 days leading up to the earnings, and a +3.67% change 10 days following the report. On the earnings day itself, the stock moves by +0.33%. This data can give you a slight idea of what to expect for the next quarter's release.
DDOG Key Earning Data
DDOG Earnings Analysis
Positive
Earnings Per Share Beat: Datadog reported an EPS of $0.46, exceeding expectations of $0.4312.
Q1 Revenue Surge: Revenue for Q1 was $762 million, a 25% year-over-year increase, surpassing guidance.
Customer Base Expansion: The customer base grew to approximately 30,500, up from 28,000 a year ago.
High-Value Customer Growth: The number of customers with an ARR of $100,000 or more increased to 3,770, contributing 88% of ARR.
Free Cash Flow Performance: Free cash flow reached $244 million, with a free cash flow margin of 32%.
Strong Platform Adoption: 83% of customers are using two or more products, indicating strong platform adoption.
Rapid ARR Growth: Flex Logs product exceeded $50 million in ARR within six quarters, the fastest ramp for Datadog.
Database Monitoring Growth: Database Monitoring product is approaching $50 million in ARR, growing 60% year-over-year.
New Logo Demand Surge: Dollar bookings for new logos increased over 70% year-over-year, indicating strong demand.
Significant Deal Growth: 11 deals with a TCV of $10 million or more were signed in Q1, a significant increase from the previous year.
Stable Revenue Retention: Churn remained low with gross revenue retention stable in the mid to high-90s.
Customer Growth in AI Integrations: Over 4,000 customers are using Datadog AI integrations, doubling year-over-year.
Customer Adoption of Security Products: Datadog's security products are now used by over 7,500 customers, including more than half of Fortune 500 companies.
New Data Center Announcement: The company announced plans for a new data center in Australia to serve local customers.
Strategic Acquisitions for Growth: Datadog made two acquisitions: Eppo and Metaplane, enhancing their product offerings.
Q1 Operating Income and Margin: Operating income for Q1 was $167 million, with a 22% operating margin.
Strong Liquidity Position: The company ended the quarter with $4.4 billion in cash and equivalents, indicating strong liquidity.
Negative
Gross Margin Decline: Gross margin decreased to 80.3% in Q1 from 81.7% in the previous quarter and 83.3% a year ago, indicating rising cloud hosting costs and pressure from new product innovations.
Declining Operating Income Margin: Operating income fell to $167 million, resulting in a 22% operating margin, down from 24% last quarter and 27% in the year-ago quarter, reflecting increased operational expenses.
Operating Expenses Increase: Operating expenses grew by 29% year-over-year, similar to the previous quarter, indicating a continued high investment in R&D and sales despite the pressure on margins.
AI Revenue Volatility Risks: The company acknowledged potential volatility in revenue growth from AI native customers, which could impact future performance as they renew contracts under different terms.
Q2 Revenue Guidance Raised: While revenue guidance for Q2 was raised, the implied guidance for the second half of 2025 remained roughly unchanged, suggesting potential stagnation in growth rates later in the year.
DDOG FAQs
How does DDOG typically perform around its earnings report dates?
DDOG's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +2.71% change leading up to the report and a +3.67% change in the 10 days following the release.
Is Datadog Inc (DDOG) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
DDOG Earning Call Sentiment
Datadog, Inc. (NASDAQ:DDOG) Q1 2025 Earnings Call Transcript
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