Datadog Q4 revenue beats expectations on customer base expansion

Overview

• AI-powered observability platform's Q4 revenue grew 29%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company launched new AI and observability products, expanded AWS collaboration

Outlook

• Company expects Q1 2026 revenue between $951 mln and $961 mln

• Datadog forecasts FY 2026 revenue between $4.06 bln and $4.10 bln

• Company anticipates FY 2026 non-GAAP operating income between $840 mln and $880 mln

Result Drivers

• LARGER CUSTOMERS - Datadog reported a 31% increase in customers with ARR of $1 million or more, contributing to revenue growth

• NEW PRODUCT LAUNCHES - Launched Bits AI SRE Agent, Storage Management, Feature Flags, and Data Observability, enhancing product offerings

• AWS COLLABORATION - Expanded collaboration with AWS, introducing new capabilities in AI, observability, and security

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 42 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Datadog Inc is $190.00, about 66.7% above its February 9 closing price of $114.01

• The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 76 three months ago

Press Release: ID:nGNX3WSbGR

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