The earnings call for Datadog Q1 2025 presented a strong start to the year with significant revenue growth, customer expansion, and successful product launches, notably in AI integration and product adoption. The company also made strategic acquisitions to strengthen its portfolio. However, there were some areas of concern, including a decline in gross margin and potential volatility in AI cohort revenue. Despite these challenges, the highlights suggest a robust performance and positive outlook.

Company Guidance -

Q2 2025

During the Q1 2025 earnings call, Datadog provided guidance for the second quarter and the full fiscal year 2025. For Q2 2025, Datadog expects revenue to range between $787 million and $791 million, representing a year-over-year growth of 22% to 23%. The non-GAAP operating income is projected to be between $148 million and $152 million, implying a 19% operating margin. Furthermore, the non-GAAP net income per share is anticipated to be $0.40 to $0.42 based on approximately 361 million weighted average diluted shares outstanding. For the full fiscal year 2025, revenue is expected to be between $3.215 billion and $3.235 billion, indicating a growth rate of 20% to 21%. The non-GAAP operating income is projected to range from $625 million to $645 million, reflecting an operating margin of 19% to 20%. The non-GAAP net income per share is forecasted to be between $1.67 and $1.71, based on an estimated 362 million weighted average diluted shares outstanding. The guidance incorporates considerations of cloud cost efficiencies and the impact of recent acquisitions, while maintaining a focus on long-term growth opportunities.

Strong Revenue Growth

Datadog reported Q1 2025 revenue of $762 million, marking a 25% year-over-year increase and exceeding the high end of their guidance range.

Customer Expansion

Datadog ended Q1 with approximately 30,500 customers, up from about 28,000 a year ago, and 3,770 customers with an ARR of $100,000 or more, up from 3,340 a year ago.

Increase in Product Adoption

83% of customers were using two or more products, up from 82%; 51% were using four or more products, up from 47%; 28% were using six or more products, up from 23%; and 13% were using eight or more products, up from 10% a year ago.

Successful Product Launches

Flex Logs exceeded $50 million in ARR, achieving this milestone in six quarters. Database Monitoring is also approaching $50 million ARR, growing 60% year-over-year.

Strong Bookings and Retention

Bookings for new logos increased by over 70% year-over-year, with 11 deals of $10 million TCV or more. Gross revenue retention remained stable in the mid to high-90s.

AI Integration Growth

More than 4,000 customers used one or more Datadog AI integrations, doubling year-over-year.

Strategic Acquisitions

Acquired Eppo and Metaplane to enhance product analytics and data observability capabilities.

Datadog (DDOG) Earnings, Revenues Date & History

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DDOG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 07, 2025	2025 (Q2)	0.41 / -	0.43	―	―	―
May 06, 2025	2025 (Q1)	0.43 / 0.46	0.44	4.55% (+0.02)	―
Feb 13, 2025	2024 (Q4)	0.43 / 0.49	0.44	11.36% (+0.05)	―
Nov 07, 2024	2024 (Q3)	0.40 / 0.46	0.45	2.22% (+0.01)	―
Aug 08, 2024	2024 (Q2)	0.37 / 0.43	0.36	19.44% (+0.07)	―
May 07, 2024	2024 (Q1)	0.35 / 0.44	0.28	57.14% (+0.16)	―
Feb 13, 2024	2023 (Q4)	0.43 / 0.44	0.26	69.23% (+0.18)	―
Nov 07, 2023	2023 (Q3)	0.34 / 0.45	0.23	95.65% (+0.22)	―
Aug 08, 2023	2023 (Q2)	0.29 / 0.36	0.24	50.00% (+0.12)	―
May 04, 2023	2023 (Q1)	0.24 / 0.28	0.24	16.67% (+0.04)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

DDOG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 06, 2025	$105.70	$106.06	+0.34%
Feb 13, 2025	$148.09	$135.89	-8.24%
Nov 07, 2024	$128.35	$129.79	+1.12%
Aug 08, 2024	$108.04	$114.06	+5.57%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.