Datadog Exceeds Q4 Revenue and Profit Expectations, Reports 31% Growth in Million-Dollar Clients

Stock News02-10 21:12

Cloud monitoring and security platform Datadog (DDOG.US) announced its financial results for the fourth quarter and full year of 2025, reporting revenue and profit that surpassed market expectations. The company also provided its financial outlook for the first quarter and full year of fiscal 2026. Fourth-quarter revenue reached $953 million, a 29.1% increase year-over-year, exceeding market expectations by $34.8 million. Non-GAAP earnings per share were $0.59, beating the consensus estimate by $0.04. In terms of profitability, the Non-GAAP operating income was $230 million, representing a Non-GAAP operating margin of 24%. Operating cash flow for the quarter was $327 million, with free cash flow of $291 million. The company's total cash and marketable securities amounted to $4.47 billion as of December 31, 2025.

Datadog demonstrated significant growth in its key customer metrics. As of December 31, 2025, the number of customers with an annual recurring revenue exceeding $1 million reached 603, a 31% increase compared to 462 customers in the same period of 2024. The number of customers with an annual recurring revenue over $100,000 was approximately 4,310, a 19% increase from 3,610 customers a year earlier.

Based on information available as of February 10, 2026, the company issued its financial guidance for fiscal 2026. For the first quarter, revenue is projected to be between $951 million and $961 million, compared to a market consensus estimate of $934.08 million. Non-GAAP operating income is expected to range from $195 million to $205 million. Non-GAAP earnings per share are forecast to be between $0.49 and $0.51, while the market consensus was $0.52 per share. For the full 2026 fiscal year, revenue is anticipated to be in the range of $4.06 billion to $4.10 billion, against a consensus expectation of $4.10 billion. Non-GAAP operating income is projected between $840 million and $880 million. Non-GAAP earnings per share are expected to be between $2.08 and $2.16, compared to the market consensus of $2.34.

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