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 +3.25% change in stock price 10 days leading up to the earnings, and a +3.41% change 10 days following the report. On the earnings day itself, the stock moves by +0.13%. This data can give you a slight idea of what to expect for the next quarter's release.
DDOG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
737.73M
25.11%
6.91%
Gross Margin
80.46%
-2.14%
0.52%
Operating Margin
1.27%
-72.98%
-56.80%
Net Margin
6.18%
-32.53%
-17.49%
EPS
0.15
25.00%
-6.25%
No Data Available
DDOG Earnings Analysis
Datadog Inc Corporation (DDOG.O) Earnings Conference Call
Positive
Earnings Beat Expectations: Datadog, Inc. beats earnings expectations with reported EPS of $0.49, exceeding expectations of $0.44.
Q4 Revenue Surge: Q4 revenue reached $738 million, a 25% year-over-year increase, surpassing the high end of guidance.
Customer Acquisition Success: Customer base grew to approximately 30,000, up from about 27,300 a year ago, indicating strong customer acquisition.
Large Client Expansion: The number of customers with an ARR of $100,000 or more increased to 3,610, up from 3,190, showing expansion among larger clients.
Strong Free Cash Flow: Free cash flow generated was $241 million, with a free cash flow margin of 33%, reflecting strong cash generation capabilities.
Product Adoption Success: 83% of customers are using 2 or more products, with 50% using 4 or more, indicating strong product adoption and cross-selling success.
Total ARR Milestone: Datadog's total ARR exceeded $3 billion, a significant milestone for the company.
Record Bookings Achievement: The company achieved record bookings in Q4, marking the first quarter with over $1 billion in bookings, indicating strong demand.
Customer Retention Stability: Churn remained low, with gross revenue retention stable in the mid- to high 90s, highlighting customer satisfaction and loyalty.
Continuous Product Innovation: Datadog launched over 400 new features and capabilities in 2024, showcasing continuous innovation and product development.
AI Customer Revenue Impact: AI native customers contributed significantly to revenue growth, indicating a strong market position in the AI space.
Major Contract Wins: The company signed several large deals, including 7-figure annualized contracts with major companies, demonstrating strong market traction.
Negative
Slowing Revenue Growth: Revenue growth is slowing down, with Q4 showing only a 25% increase year-over-year, which is a decrease from previous quarters.
Operating Expense Increase: Operating expenses grew 30% year-over-year, which is significantly higher than revenue growth, indicating potential inefficiencies.
Gross Margin Decline: Gross margin decreased to 81.7% in Q4 from 83.4% in the year-ago quarter, suggesting rising costs or pricing pressures.
RPO Duration Decrease: RPO duration decreased year-over-year, which may indicate shorter contract terms and potential volatility in future revenue.
Contract Renewal Optimization: The company is experiencing optimization and volume discounts related to contract renewals, which could impact future revenue growth.
Limited Revenue from Large Clients: Despite strong customer growth, the median ARR for Fortune 500 customers is still less than $0.5 million, indicating limited current revenue from large clients.
Operating Margin Decline: Operating margin decreased to 24% in Q4 from 28% in the year-ago quarter, reflecting increased costs relative to revenue growth.
DDOG FAQs
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DDOG Earning Call Sentiment
Datadog, Inc. (NASDAQ:DDOG) Q4 2024 Earnings Call Transcript
DDOG.O
1.86%Positive
The earnings call presents a strong financial performance with 25% revenue growth and a 33% free cash flow margin, despite a slight decrease in gross margin. The Q&A section highlights stable growth in AI native customers and strong demand for new products. Despite conservative guidance, the company's strategic investments and customer expansion indicate optimism. The issuance of convertible notes and repurchase could be seen as neutral to slightly negative, but overall, the company's growth prospects and market position suggest a positive stock price movement in the near term.
