Datadog (DDOG)

A.J. Ljubich Director, IR
Olivier Pomel Co-Founder and CEO
David Obstler CFO
Mark Rende Morgan Stanley
Chris Merwin Goldman Sachs
Sterling Auty JP Morgan
Brad Zelnick Credit Suisse
Mohit Gogia Barclays
Matt Swanson RBC Capital Markets
George Iwanyc Oppenheimer
Bhavan Suri William Blair
Joey Marincek JMP Securities
Brad Rebeck Stifel
Michael Turits KeyBanc
Gregg Moskowitz Mizuho
Yun Kim Loop Capital Markets
Call transcript
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Ladies and gentlemen, thank you for standing by and welcome to the Q4 2020 Datadog Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Thank you. I’d now like to turn the call over to your speaker today Mr. A.J. Ljubich. ahead. go Please

A.J. Ljubich

issued Good today [Keena]. XXXX thank for press you results today. of Thank review afternoon Datadog’s us release our in to we full-year the fourth joining close which market you, announced and after quarter financial and

David the and Datadog’s me and on Pomel, Co-Founder today call Joining CFO. Olivier are Datadog’s CEO; Obstler,

as trends usage reflect not from will of customers indications intended a well intend, date. differ words from These only expectations. cause results statements continue, the performance; The today could on risks and future including During actual benefits these Private related the Harbor and forward-looking and of of under the market are this expectations. be statements business our to impact views will, the our our our in COVID-XX to quarter and you anticipate, that expressions variety materially potential forward-looking similar Safe estimate, Act Reform full-year partnerships products, we call, or of Litigation to and the our securities statements industry benefit to similar are of Securities go-to-market; will made and laws investments of to are as opportunity and provisions future our trends. as expect, subsequent for statements outlook any to to make from the for our R&D of of financial of as our our and statements strategy, capitalize platform; XXXX, identify pandemic related to These including pursuant subject federal our XXXX and fourth uncertainties ability that our ability

Form actual filed that XX, for other the XXXX. period on the September discussion SEC a affect to ended refer quarterly on with quarterly our our please material of For report the XX, November important results, XXXX XX-Q and factors risks could

from for XX-K on that XXXX time-to-time the December in the be and with XX, our made file Form information annual and available will other may period SEC. Additional reports report filings ended we

the are Our Non-GAAP this be that, Please discussed reconciliation call Relations call you tables of release of in our the Relations Investor measures for which over GAAP find section the conference can comparable time. on limited I’d the will earnings A turn to SEC also to filings most the this made with be measures refer for to like website available of the measure. available a replay on to financial website. our there of will directly on With a call. these financial Investor our portion Olivier.

Olivier Pomel

for you, and Thank today. all A.J. thank us you joining

QX very again once pleased with high and COVID. in growth efficiencies. Despite by our at are the We unique which scale presented challenges performance showed demonstrated

velocity a a products continued high introduce XXXX at rapid We efficiencies. to new and top in at demonstrate rate stronger product line growth

and R&D We ended the handled with team employees both years with our are growth teams. increase in particular, year-over-year We year others The way XX% go-to-market the globally. challenges. high have the X,XXX our well as the unprecedented very as proud of of pandemic

be communities significant safe year on they One high maintaining the remotely as our we engagement of and to was at employees been citizens productivity. our employee have our of productive face strategic and to and onboard for hire good keep to hiring decisions Throughout pandemic and of the have interview, beginning able the worked keep to and we challenges.

transformation customers. on racial COVID to as maintained QX relief, to focus not proud Last to awarded have and grants our we the of as while individually ability social be source the including well cloud very QX charities growing employees have justice in year, value In to them nearly $X lot this an face to and has least our and our but execute challenges to accelerate learned our focused to a market them as well both we are and prove year, support the and donate to as digital of a words, will pandemic exceptional opportunity. of time. million our a relentless to very challenges We migration businesses efforts. certainly of believe to been over allow we in on it this large other delivering And we confirmation

million, to but of our and of the summarize high XX% review year-over-year was revenue range. onto QX the at guidance above quarter, high increased Now a end level a $XXX

more, with XX% doubled XX also X,XXX three of of we up little ended $X last generate ended year ARR just year customers We almost ARR. XXX,XXX years XX the These last customers and XX ARR We the more two an year a customers with or more over had with a of million than the year. XXX from an with or ago. times

quarter customers strong about another have ads quarter X,XXX year, added in added QX. from X,XXX in We the XX,XXX it XX,XXX customers we making up we about about which after of the means last

be We of $XX to also continued million. flow with free cash capital efficient

our usage your was product. in adopted customers over and dollar-based net as retention on past rate quarters XXX% As increased their

and full-year of generated $XX million margin above free a revenue of the cash year. year-over-year, we was $XXX the from the high of million, increase end For our or flow XX% the which XX% guidance was

against was Now very QX sales Execution strong outstanding detail. particularly performance, with to backdrop. macro the more in review

logo board of a strong significantly added was year’s sales was record Very record channel last new New as number. ARR commercial that and the as generation new across above including enterprise was very well performance robust from number strong, existing logo of million of to both increased Gross their QXs for all continue Datadog customers customers. to line as in and consumption trend. customers and growth of broadly cross-selling logo pre-COVID existing new customers user grow of sizes a was with plus dollar

and with consistent low very remains historical pre-pandemic churn Lastly, rates.

strategy continues win resonate platform the in our and market. Next to

year. from the QX, using two of last As is products, or XX% of end which of XX% are customers more up

is another quarter XX% or have we approximately ago. of which with two new are a branded products. logos using in XX% more up which year customers only of Additionally, And more or XX% products, four from

the uptake product, thousands and has customers of our of amount are time. each traction, We of or RUM very short which newest with hundreds in of which a happy including NPM, platform Security

a digital our product Overall, they as very reminder, customers to and strategic and both a expand our staff customers. time. before our adoption time status our frictionless our our our a for customers execution, challenging partner integrated at small leading are newer a to a to single as in expand by strong is As to And over first speaks land selection enables scale ability land adopted adoption operations. product value and prioritize our the key often proposition to model greater from platform

and onto two announced product Today, Now R&D. we acquisitions.

as causes based or security complex in-app that First, application known to respond issues between is to we by detect, Application WAF RASP enables application to Sqreen, of web a acquire lines dev, also solve, an today. Runtime companies because firewall block and to ops hundreds Security application layer announced level attacks. security of application and and used team. already responsibility provides platform are and Self-Protection in SaaS enterprises the security Sqreen’s agreement technology

Synthetics. we result, for customers APM combination will our believe a powerful As or be a using this

data and announced vendor-agnostic, tools data and on-premise Vector high-performance of also destination the collect, signals sources the Vector, pipeline. and and in With environment, data and we observability transform other of acquisition a can across Timber to their enrich Next, cloud the multiple route can Technologies, both logs customers of developers and choice. this

for speak technology I providing of broader everyone our us for this entry platform. is that teams our the expect companies their Datadog in points We observability to both break further to down to we saying to quest our extremely to customers of control excited silos. empower data, are while join at

launched general allows new other we new had in and including Cloud users also investigate delivered availability of QX. our a as brand or collaborate new without declare monitoring integration, across our root We leaving Beyond analysis products, case acquisitions features to enhanced the which Profiler. Snyk new more Incident of with the And capabilities we Datadog. Continuous Oracle and and incidents, developments than Snowflake, number such vulnerability XX Management,

nine been available cloud-native one to the filing our is XXXX platform as back, of most exit context, integration products. an platform step observability and had put integrated have complete we we and ago years able that To Now only taking cases. because build four in these with a product extensible we various just generally to

to we’re getting that XXXX, feel started. just forward Looking we continue to

architectures. First, is alone we our doubling cloud down are a very platform is growing market out and building This on a for to re-platforming core opportunity quickly with large observability.

aggressively early more still and products. this both the in are are as SKUs the as functionality adding well new transition We mature to

envision we down with of we launch a we similar first just in a security and planned way ops started in Second, getting the working large between tech a and XXXX. silos our very with runway long opportunity what development product dev product between to dev, We and consider security seen in have ops. are

investing are the we and Third, in ecosystem. platform

addition of building In with major we up cloud the partnerships all strategic Datadog to now the vendors. have marketplace,

For which example, quarter, should in be with and market last we expansion in the our announced GCP partnerships Azure of XXXX. the

new introducing in instances regions also as Cloud. Go cloud are We such

and as XXXX, we reach goal for cases to where can to believe Our current customers solve value. they be beyond gain friction time customers use beyond And adoption lower is may to our more are think regions two do platform. and distribution vendors and across there lower we of in to we longer-term our

sales and marketing. the Let’s move to on

earlier, quarter. of very I sales mentioned the productivity and pleased strong I’m very QX our go-to-market As was continued with a teams

quarter. our So some let’s wins of discuss in the

First, let’s about a has COVID digital way the talk transformation. accelerated bit

companies beneficiaries number more a a the upsales well seven-figure consumer games negatively quarter, in the with two by well company. a and impacted the COVID overlap are as These a video heavily airlines upsales As strategic key a though companies pandemic, that Datadog of a [founded] separate even industries travel also that a a we is including businesses surprisingly digital platform technology expected increases upsales company. their a to in most as e-commerce as the seven-figure deals scaling rapidly company from Perhaps operations. event in device six-figure notable in partner with such demonstrate as had global negatively in AR we company, investing physical saw line are were and as that impacted large

our some for let’s quarter. wins into other key Now dive the of

Both separate have view First, seven-figure teams Datadog both I’ll struggling teams. the both lands highlight giving and and been into with insurance companies, of to dozens in ops tools an company. with are a silos retailer two dev consolidating XXX and Fortune single notable

integration seven-figure Asia, with a previous enabled key [ATM] infrastructure of partner approach This adopted differentiator Tracing solutions our had Datadog company in land to Limits a was a the without and and we platform sampling new a suffer streaming platform are due to data. by Next, compliance they full data our program. sports from as which was spots lack

yet Next, and its another there from company could this had we and so more be based from products to SaaS time build deliver in it India. This yourself a company moves a free seven-figure land us innovation. approach engineers

Lastly, would offerings. legacy new to replace marketplace deals network the we case consulting management note now nearly million had to was monitoring expansion using that developed a direct our of from partner I products getting to solution upsale physical a devices. also with brand This a first network visibility In is company very into Office $X benefit large XXX. this this firm. integration the one and point a

The and must are is massive developers business to Businesses and and migration performance. driven be early are success our never market whose that before. outlook, by so first still stages - it clear far is like productivity Now have that moving trends our drivers to digital strategic its engineers have ability collaborate employees truly gotten key of only platform in us the stronger. driven to on cloud

near-term that While believe our a And sustain to for Obstler. Financial increasingly the With we over we continue both opportunity. execute volatility possibility environment, call that, ability there to in David near-term turn over David? our confident in to can our the and like by macro to strong is growth long-term Officer, would more are time. Chief caused the in we I

David Obstler

Thanks Olivier. Yes.

top quarter year-over-year XX% the up a bottom backdrop. $XXX.X fourth line million, difficult results mentioned, amid Revenue was and year-ago comp. As strong we delivered macro challenging against

churn New strong, norms. very more was to context. and strong than better logo usage historical traction platform generation provide were in trends some solid, continued To line was to be

new records very ago. displaying new were logos ARR a and First number results Both were of strong strong. logo versus new for growth year Datadog the logo

based from net was wins existing XXth given both customers Growth enterprise and dollar that New our business our contributions across came for regions into based commercial sales and retention quarter. XXX% our and robust usage generally not model, revenue of the immediately new Remember remained do translate channels. consecutive revenue. logo above

continued and of existing usage pressures. detail. experienced last adoption their meaningfully little We which a migration of go are level and in even Growth To platform long-term showed face growth trends in more cloud with was the existing of macro in the our year. the into broadly the better customers, line with of of customers than QX pleased

a line impact lap pressured though we with experienced was usage As metrics, in and growth that our year-over-year quarters have approximately reminder, pressure QX two until revenue and growth was meaningfully that even retention now will pre-pandemic levels, including we net that compare. of

a products ago. fourth using saw platform or two customers using or our over products, of strategy XX% our we year quarter, now four XX% XX% strength from customers Next of continued in the more more with only our up and of

two products, that products closing the come plus in Given that number. customers now share from overall lands using of more or two-plus believe on of XX% we our is

in importance solution This our challenging even churn slightly better customers levels. demonstrates our historical times. during of to was than line Lastly, to the

gross largely dollar-based retention Our low to the rate mid has unchanged in XXs. remained

commits multi-year to $XXX billings retention forma approximately billings in obligations timing It growth. contract were larger the important RPO and $X net of that Now million million, million, strong growth. of performance $XXX.X our as was we XX% our was for note was and with fourth and XX% which and similar for extended force pro multi-year After year-over-year. year-over-year. incentivize commitments to given billings, sales RPO last Both mid-XXs annual up high revenue multi-year in growth adjusting by Current up year’s year-over-year, were annually quarter, those quarter billings deals Remaining the driven commits. in not as built or well a the duration XX% to billings billings do few growth is strong rate. in line strong turning

contracts and reminder, customer RPO signing incorporates versus billings based usage. of and fluctuate while invoicing a the on the customer As can revenue timing of revenue

let’s review income statement in the Now detail. more

As all are metrics a reminder, otherwise unless noted non-GAAP.

decrease GAAP non-GAAP margin representing innovation. and last and our XX% our to a This in We financials earnings compares was slight gross margin sequentially from minor have of in a of created quarter a gross year-ago profit is million, margin the investments XX% period. reconciliation quarter gross Gross in of to to platform The due provided inefficiencies the in XX%. products $XXX.X release. in

range gross margins to R&D development geographies. As the cloud to quarter of newer within we and a fluctuate compared the as well XX% reminder, acceptable prioritize $XX.X innovation data year-ago product our in expense centers quarter our million an as may XX% or as in was quarter. build-out revenues of

of in approximately our to XXX headcount, continued of R&D including have net XXXX. growth invest over added engineering high We significantly which the course we heads R&D,

make was Similar substantial pace talent XX% quarter and year-ago and to has have trade growth in and We in shows or attract another to COVID. able execute Sales marketing million outpaced This of revenue been during no the but that we compared $XX.X period. hiring or the investments marketing, XX% in-person to expense to of on onboarding investment. was continue revenues events. R&D of sales and marketing

in While we the $XX.X X% with the quarter $X.X X% or compared growth or based Headcount income redeployed advertising million on and operating net marketing than of it G&A slightly approximately continued million outstanding. events, events average the one-for-one was lower XXX other of weighted have margin The year-ago period. a reduction year-over-year and expense due of a quarter. were the growth year-ago COVID the million drivers entertainment operating budget was revenue facilities $XX.X leverage. the Non-GAAP shares to X% an ratio. generating lead or and and was operating was $XX.X much successfully on in diluted revenues, in overhead in the in was travel with not quarter to share to the income million income in a line XX% in $X.XX primary activities, margin million per

sheet was flow, million in free consider operations and from cash balance margin a for cash securities. cash was taking $X.X with capitalized $XX.X flow the million marketable we flow $XX.X X%. equivalents, capital the to and of quarter. billion and After expenditures in the ended restricted into Cash software, Turning cash, quarter cash

cash full $XX.X margin. was free For or the year XX% flow million

Now to turning the outlook.

of first quarter full-year For and the XXXX. the

mentioned, opportunity. Olivier and the believe we against well growth As deliver large that addressing we for are we can a as high executing very foreseeable market future are Greenfield

to some out continues look COVID uncertainty. we As present to XXXX,

we pressure hand, the that will pandemic and near-term cloud the one accelerate the once On migration digital subsides. believe transformation

XXXX high we the which of year-over-year initiating quarter, to and path to remains of approximately first be growth range following to be guidance with of we income combination, expected net million $XX weighted uncertainty. range $X.XX are shares. Taking a $XXX is continued be to XXX the per Beginning per normalization million revenue $XXX the on represents based which However, the at of the timing million, million, operating includes expect growth. in midpoint. $X.XX XX% is share Non-GAAP expected in income diluted average the to in and share to $X non-GAAP million

is of million to growth XXX For on full-year be and $XX the expected per million, in shares. the expected income Non-GAAP was to million range to $XXX non-GAAP $X.XX in of million, operating range average the approximately which to is to be expected $XX based the XX% income of share range share weighted the in million revenue to net per $XXX diluted at midpoint. $X.XX represents year-over-year be

the of current assumptions in guidance. as on are reflect guidance payment, logo on well as the notes macro growth customers existing new of some Embedded prudent some Now which the at uncertainties.

XXXX. Therefore, continue aggressive in investments investing for focus R&D strategic throughout remains on long-term we’re our to growth. and go-to-market both optimize to planning Next,

throughout we on While confident to XXXX, to in not we business Rather over the profitability. are the been XXXX clearly be profitable term. of are are plan and sizable company be optimizing a and profitable long our in efficiencies ability evident we have near-term focused our materially

and half return a Additionally, travel model in of office and events the resumption second the year. assumes of our a to in-person the

We believe in prudent that have our on limited it’s outlook. to but presently visibility these topics, incorporate

no Timber guidance. closed has and Next, two acquisitions, of our the has to Technologies impact

stock. transaction We mix the of screen, approximately a to of XX% also in acquire cash million, which announced a deferred is total $XXX and for agreement cost of

to in but impact screen expect subject guidance, XXXX expect not and both have close deal closure. Screen We our to income upon regulatory we it an included in QX in is to guidance approvals. including closing revenue customary our to conditions, immaterial operating

Now below operating income.

We expect income interest approximately securities, interest million of which $X.X marketable net and other income, our on is the quarterly convertible. our of including the less cash non-GAAP expense

and expect be taxpayer tax international have next in approximately to be a QX full-year. we million related expect provision to our entity for $XXX,XXX Next, don’t and tax but $X a year, provision the that to federal

Lastly, notes which our of there should and for we be on debt. XXXX-XX accounting now accounted non-cash Therefore as no non-GAAP will wholly discount. as expenses debt Xst to changes convertible the related debt a GAAP have for sheet. be to other January early-adopted as forward, convertible going longer ASC is our balance component the our aligned more

strong, strong with new requires and newer product X.X EPS consume count taken all results including million pleased an forecast Datadog and of And innovation. underlying are account products. we continue was More now has both the Execution sales this guidance. into to our terms usage results in To to been for importantly, additional continued our Customers quarter. our included. very to more cross-selling summarize, the be in the share convert standard as shares of shares considers the

importance only pandemic. us Our business even XXXX our the continued into the and and very heightened to excited we’re confidence for greater sorry. ahead, challenges solutions the of continuing of will be in Therefore by throughout are year reinvest heading the give long-term execution our XXXX

Q&A. much with I’m open investors questions. for our AJ, that, today we his is Finally, Operator, as And sure at us Datadog. begin the have. as call to thank earnings with like let’s we our his call would will have now last having contributions appreciated we who


First Morgan Stanley. Instructions] from do we [Operator Sanjit have Singh question

now You are live.

Mark Rende

Hi, this congrats taking Rende is Thanks strong on questions Sanjit. for and and continued growth on for here. the Mark my results

as get get the seems of turned kind that of into of be my the you in next of easier, another want seeing us and like year on just of growth headwinds we line an and comp way combination for impacts. around, growth top of I update quarter be I growth to an thinking it? we saw the those products the result quickly back expansion It like to about work easier expect become last largely and guess comps we two from First, should Azure lower expecting with should trends summer. acceleration is, kind half through you're partnerships those have is appropriate ramping the and the to an to question

David Obstler

we about, guidance that QX through account half providing guidance revenue all I as next year, on are in the that think that a expect a in The the the QX in we into of and beta second our headwind year, talked we’ve next the through to right. of rev, terms year. not while of comp we but quarterly taking drag headwinds created given in the growth are do you upsides potential create of

Mark Rende

of does kind so a now a integrate you need is functionality? core really and customers Can Datadog this the acquisitions helpful. screen, understand the observability across versus two Datadog. it on this so it purchase, you're the and maybe the really is building out to And in what's know, timber what Datadog then helpful. does functionality? with standalone work platform? us for pipeline I side my Got bringing kind platform on being How the with just you the guess Datadog data quite announced, much, platform? need better and what is, core of Thanks And with And the insecurity then help an in observability why how timber on at security on screen portfolio question

David Obstler


questions the take on I'll M&A. So

then is the is the that our security, on we can application really present. heart security of the the is we focus one interesting APM conflict, already the, I the application and detection most clear would ops there. its strength what's on security basically really is directly. that in and side, areas the between responsibility to is area application the And the cutting of say So inject is where show and where particular deployed And can the security think in application. And protection one is that we because already and screen Dell

think So that make is this lot using be we, product are to a way a will code the we of APM, same sense customers basically. to our going that's and,

other these that, and maybe maybe that's own to an to is but us, all example, got data sure and those sources Korean network and for So of keep lugs sources many controls in-house. they in for that then be kinds their them timber example. that able really places, for do our decide data, over archive, in also example, aggregate And them, to legacy observability they system, those Make also which filter can from log of on particular, so data like produce management thing to over other see and systems, of they hear of but want interesting they that a environment. varies, is to that's want vector, sororities, they privacy things number and to it PII again have to to before I've data for, leaves right customers product the different what's rock we have a we to one

make customers, send us of them. do allow need in that the in is this end would easier is all we a fully satisfy for the and control to sure So to they're to make it customers data data, relevant think us jobs diversity from to that lot

Mark Rende

Great. Thank you.


from Merwin from Chris Sachs. line Goldman question Next of the comes

are You now live.

Chris Merwin

Thanks question. my much Okay. wanted I for about new taking lands. so to ask

I products. out more two those lands that of think XX% with are you called or

So a more you're us thanks? your recently you of the where sense strongest seeing infrastructure, with can sweet traction beyond give rest of the

Olivier Pomel

down are and mature authentic pretty in and and getting in go most the so neck synthetics, introduction are security. It's other that rum, go then step we step of behind the logs you then the, you one to terms and APM of down to are the order and first, of much that ones that one a go products, all then and NPM you dash the to down

lot so that's way later, I have with see a to more because all through a success We you've that get a think which think we're And see products the aggressively order, also so we're a question the by acquisitions. public platform more much interesting but growth us might we And pretty planning team there invest are these approach. is we for curve, space building which hiring. and we and cover, the lot to these why is proceeding we

Chris Merwin

up, revenue up guide the high mid-XXs, look a is was mean, Great. you billings, but was grow Thank then at you. on if in XX. And XX for in just I I portfolio to follow CRPO the the basis, think we RPO, said it up XX%

‘XX for Thanks. factor billings think and strong we usage, to realized revenue going really growth us to but I So for about can if in how aren't you feelings reconcile guide exiting help ‘XX? the with the saw

Olivier Pomel

strong a logo. think new Thanks. had Yes, we I

had, our also billings of extension mentioned of the and clients. we We contracts from duration as

performance, which billing and performance. mentioned, were strong the the to billings. variabilities within due in in quarter, So the strong back But of then because new contributed quarters one cause factors as that can those well everyone did we sales linearity we that duration some to try of of of revenue extension RPO as sort the have to look at the growth the which get the and the to ARR we

Chris Merwin

Understood. Thank you.


Morgan. one from Auty on is Sterling Next JP line

live. now are You

Sterling Auty

properly do and products the influence can coming decision your you adequately have? that the the security And that's Wanted driving revisit about when whap think curious guys. a to ops security and dev adoption, adoption. or you of out need opportunity Thanks. penetrate the we so-so that Yes. buying enough topic there to I'm what Rasp of security been Salesforce that dedicated organization push area. security again Hi newer Salesforce a is kind is is areas traditionally the usually existing

Olivier Pomel

answer So know the we to short don't yet. that is

the it. and sing we all, really it's typically application murky to right? APM the yet, not is from it The companies close product, But spitting by when yet. which is a involved who we the you try pass last is an is actually security and we're with have of not or problem are manages to hypothetical the person do deploying not of the is to deal frictionlessly So and First it in in avenues companies the you person Datadog, the way an starting wants opens friction lowered we the with to going high those is product, that there the the think sold friction product, we deploying so the server application, it who new to managers the products. it. a can deploy Or up deploy that authority low has

how officially to open on to if the translate we side, Now market it. we we're go-to sale, don't yet we need know

Sterling Auty

you products, you what All And mentioned is one then just curve. customers? land new you about products getting newer use you maybe four are three or for cases, than of would right. seeing follow-up the kind Great. those by plus what in log the in your are in particular two be say expansion maturity especially the areas curious the driving of areas adoptions into But quarters the I'm APM, ago, of saw, let's and

Olivier Pomel

more lot, for products their our different, the those and customers they a that and more activities, then like various APM of So customer, grow going right? with curve so and and they and business and they keep start small adoption the they way. products to the units love and usually still expanding more on expand are So

say still those adopted growth lot had in we customers. product, XX% of customers is be of have So updated there to even when a the

Sterling Auty

Got you. it. Thank


Next Brad Credit from one the queue Zelnick Suisse. on is

You are now live.

Brad Zelnick

platforms, it that to offering, on able to year. we crazy cooperation data your so about and am a platform. to you on you strong question should sure. amongst feed much data my rolling My a thinking think case, and right timber. Thank congrats way? express observability observability is if how that And to to about in Great. it any Yes, to be into will, create idea the I on timber not or be that end potentially for is agnostic then vector of an Oli, pipeline question

Olivier Pomel

for these who right. data various be places, do it's you're from actually have be mean, they interesting it we for so to makes deacon all to value sources, think We a it like cater and most I there. it, him of actually to sees the perspective send devalue will important our for the I you to open the, that from to integrity the - the customers right? that that's some could better, most And sense send So the customers to easily to want have if part mix any all us it mean, it but to with No, sense. to send makes use Casey's experience important is that have. flexibility

that limits of customers consume this data to as they fly to they Another a with the an without way or destination In that can login source want or add the prospects. see another back want flexibility some end. filter reaches the and extension to you into on

Brad Zelnick

it. of and the this has entire ability And the think hiring Thank level sales should on portfolio, maybe a we David, David. significantly? Sure. year to expanded ramp which up how quite about for Got the reps you.

David Obstler

as as been slightly successful of and our we've year revenues. year plans ramping well this last higher, sales ahead for Yes,

do we the again about, talked we did It year. it's been both as in So have the last within And the talked involves teams we what geographies. we've And geographies we've do it we where next plants and believe about it new into again. successful. we've it - expanding involves building as out been year can XXs,

Brad Zelnick

you Great. guys. Thank

David Obstler



Mohit on is one Gogia the Next Barclays. from line

You live. are now

Mohit Gogia

on Thanks my in as strong and quarter very well. taking a all congrats question for all

Mendix first only last question announced is you deals that week. So my

give So wondering sounds substitutability It can this us more if I platform. some am its you is color there. Mendix standardizing Datadog as on like

which the six I also is replaced the the were existing or that release that like mentioned guys you five think customer convenience, tools using.

land will your maybe there, there, stuff and there the go you're be already the or or some but if So you helpful. into more can like color very on any from customer expanded of dynamics

Olivier Pomel

more product the anything to typical - don’t this platform the release, call the platform with actually the the has not can of where has a be is - press - in motion of much expansion most mentioned customers that, the rest which across but products speak been the not given expanding it’s one mentioned was have for what landing of provide, the it’s didn't I but of the I set. the to we as have value because and happening of across can I publicly, sure of prepared then smaller think interestingly Yes, But the am we color, I in I prepare notes.

a it’s motion. typical So of type

Mohit Gogia

Understood. question David. My for follow-up is

terms followed another ARR quarter in up I QX. the of So - so David record new in Right. QX think in you here strong

the look if QX. billings just puts coming or be So very together off-third mean, ARR seems but nicely like in at things and to if we dip and obviously to other a I I it takes understand RPO, slight

guidance? question how know I but about already was I… like, think asked, we So should this the if

David Obstler


Mohit Gogia

can next say like If fiscal quarters compared that of ARR really I us year two and reconcile to this of to sort you guidance, that? help strong what

David Obstler

the as there’s it’s from time, are the positives and very typical take but we uncertainty last approach a guidance in said it, to we a towards lots given to of might COVID continue world and approach of Yeah, what we a proud enterprises. happen conservative and

we conservative less usage quarters we our to when said, of company. As continue and logos, a remain to as new bowel the and client both seen prudent have world in guidance in a terms growth we of public as we’ve provide but

Olivier Pomel

when various before I world noisier pandemic various were they that’s at economical layers track the will the than is, and those the the metrics say the of and basically pandemic. we thing the still because way particular the they our internally - we One And pull our usage economy. impacts are through look in metrics of

And was of is, before, be year the changed and people’s last much what we drop there at TPP example that takes from because week tell to behaviors or I activity, of in the off. bit different cautious everyone is there, want the a have could a year if an so it - week year, pretty it little a the next

that. off turn year, more many This was at hadn’t taken time And like people off I year their and everybody any pronounced, environments it off some and that companies because during things think took time the that time. development

a fast want economy can little happen. to the we the bit We’ve we in be future. careful what change that changes So the as predict about learned numbers in QX to

Mohit Gogia

Okay. Very advice. helpful. you. Good Thank


question from Hedberg Capital Markets. Next from RBC comes Matt

live. now are You

Matt Swanson

that well year. Olivier multi-product strengthened know Greenfield Matt has a great. Matt. the I than And your actually on and and more Swanson about more more time is into when we cycle? talk Yeah, more adoption adopting talk of this in those to trended the more does of is the to strategy a rather but of This and go-to-market upsales? well Thanks. your being affecting leading you customers start throughout solutions, how we for displacement sale kind as lot opportunity cycles displacement,

Olivier Pomel

which still, we’re lot I as case the in before. were building by what Greenfield be doing is in to going is products foreseeable We’re why growing I say salesforce. - future, a would the more for and think investing we just it’s of as today And the

Greenfield of possible. we as as market So these much can capture

Matt Swanson

security a opportunity, observability any on And like It environment. that’s then following knowing renewed of you just sunburst, maybe elevated a some for their on there concerns happening even but could kind seen security. focus newer is you’ve touch helpful. what’s and know be might in feels changes outside I of Yeah, around enterprises

Olivier Pomel

it’s Well, a opportunity both challenging right. Yeah.

whole was world where they has were running, with supply chain, what their which I is themselves software the good. happening asked think

I we that some say product but some monitoring for think it and we that want would device their opportunities network is that short-term new, network customers in reason. interest I because that see to some, replace see opportunity, do opens monitoring our some minor fairly

a longer-term, what what’s growing think your definitely applications your is chain, we’re problem doing, security. and supply understanding investing that why understanding in that’s there’s understanding running, I

I think opportunity there. there’s going to be a long-term

short-term prices but in on the the And happen some going there, with to in their is network the longer-term. applications. many replacement was and can – the So real opportunity basically

Matt Swanson

right. you. All Thank


question comes from & Andrews Next Jack Needham from Company.

live. now are You

Unidentified Analyst

in your ramp and expected type you Microsoft to should time for Colin from we Can contribution leverage? is some provide relationship color how with Jack. compared This How about given Azure progressing be logo XXXX? is emotion code new a Microsoft on partnership organic thinking with

Olivier Pomel

still still in preview. library, It’s in not

to year, that expecting have it, be we in So customers these we don’t control limited of and have the fully live but we’re it. the half to access some first

and impact. that. to before before going us would hard partnership we with will be to We do don’t from there’s back - What in happens. our want - at them is say a it though, I Microsoft the to this I in So pipeline to customers two us. going with with already that again in is got it’s tell integration look or billings existing that be we positive tell, fact expect better move and have confidence already three and extend helping out

few very a to positively that. seen last really we’ve So steps

I we’re the we satisfied say with So pretty would already are, impact.

Unidentified Analyst

use using behavior, you’re my gains cycles quickly? That’s of derive more your seeing that helpful. about of you sales customers solutions the and in terms ease cohort marketplace value can talk any or can these changes given some your you. of from platform in from Thank And from adopt to customers

Olivier Pomel

democratize telling we So right. you,

do that a to of the attorney, still and it’s the needs of offering bit some quite in there would terms So - the say. have I we happen breadth But

Unidentified Analyst

Not clear anymore.

Olivier Pomel

on mute. might I


Unidentified Analyst



Olivier Pomel

All right.

Let we me And that haven’t I is be only written marketplace, again. that is additive would new like it some adopting fairly try marketplace. out the platform applications interesting. saying software we the are which the very, still and customers to see that completing very their with do the platform but

meaningful. it’s fairly marketplace And some these of actually

Again to this say just to be a So of see recruit is this and of sign. of to an platform. lot work would on building partners lot a I is encouraging lots done,

early have but we early, signs fairly still on. very So very good some validating

Unidentified Analyst

Appreciate the you. color. Thank


the Next Iwanyc from is queue on line George Oppenheimer.

You are now allowed.

George Iwanyc

Thank taking my question. you for

customers the any of seeing the landscape? up tools of on and competitive number multi-product look So you strong adoption. consolidation at Are at following of of kind Olivier the broad your just overall a kind

Olivier Pomel

jump their that Yeah, want tools between right. have don’t examples so have separate we of teams. are considering Because want teams tools. between they definitely, to don’t They few customers we on the to mentioned us, a

So we that. definitely see

the source boring but in that’s petition say same then situation terms of in change to had the a to the noticeable seen not and dominant some large is have lot before it’s we’re us, motion. occasionally, up any competitive Greenfield, is landscape, something I where as much that would most of yourself. opportunity year, before have In it open we the pretty bit the switched a the that already was to going from to a customers in haven’t And past lends of

George Iwanyc

All at extending flatten the When you’re contract maybe out when year? you you expect to thank bit. that guidance, duration about then David, either or start your the to looking do And a you. right, talked in later

David Obstler

any We particular think with that in been and ascetic the There talked that can quarter as up. about that hasn’t change be that strategy. with, contracts come we

Our strategy the to get and dominant mainly to to annual That’s commits still billing is go-to-market. demand. offer upfront on way

but want duration. really they variability some our billing, want arrangement, sort we clients of is are a the haven't So term what certain where terms changed in or in happens longer multi-year of we a assumptions

George Iwanyc

you. Thank


Blair. line Suri the on from is one Bhavan Next William

live. now are You

Bhavan Suri

the was to quick guys. touch my And echo guess, I I things I'll on Synthetics. congrats. And that a just quarter. want here of for question couple solid a Thanks

charging started You for Synthetics.

bring you've that ‘XX, was attach get QX to to talked attractions, seeing maybe has not up expectations, trending we wrong. business love the how color. relative a call, because your I think - growth specifically, I'm just that's rates assume doing? do to how the been correct you what it me didn't in much it's if bit but I'd all hear about in little

Olivier Pomel

very it's going well. Yes,

aligned that the of quarter, when success talked talked And as four about last product and tremendous strong we were we the set of together. size dollars the we think after growth type tens customer, growth, early to terms size millions of initiated. been is of Synthetics logs number had and having APM sort in really of we in was they infrastructure its about very it's and adoption, the products multiple were I

to continued the platform. reception part strong we're So of overall see as very

David Obstler

will go as very, network introduced to Synthetics, your I you monitoring occur both said, very good if and growth look, were said, very which after Yes, adoption curve. we're we is have run, a similar and and

to have little I friction in So we we The both have of between from differ so think have in but applicability all data far any depth good would curves don't our so and bit that. levels about levels about the different products, have heavily overall, those of they feel a maps to might and say, products. because we we platform,

Bhavan Suri

from know. the you you've me, don't other think I but to X given usually Good wrong, metric And one Absolutely. a maybe disclose then one you and million this customer better count the in you in previous seven quarters. a through might've I'd love saw driven to year. if which And flush understand a December, how jump budget that deals? of trended figure

David Obstler

year some Yes, color. we delivering said be a that that providing once and we would

year. end the it's So the of

think in year. growth that we we a I saw steady told As you, of

the effect think was in either land of new with it difficult commensurate throughout our QX our more rest improved the type or of evolution the expand mimic business logo in of from where sort the I year and expansion. that around

Bhavan Suri

appreciate I Thanks helpful. super That's guys. taking you. Got question. really my you

David Obstler

welcome. You're


the do Pat Walravens For JMP have we Securities. question next from

live. now are You

Joey Marincek

Thank for you. Pat. of changed I how Joey all I'm is customers, to I was them? wanted going those these larger just dig This last has on that Marincek customers. off at Thank you're you. question, wondering, conversations your in just larger maybe approaching

David Obstler

The conversation hasn't really changed much.

getting products, happened cloud. broadly, the are are our deeper which is is more more into deeper those and themselves us what continuity, adopting that I in more and think they're the of and they customers deploying past, and has and which more

So are XX with that but number of leave to cloud. large a million a of it's I and pushing Basically arbitrary, would continue customers end move to more above customers customers customers we below large there, they And number there's and it, have or think, platform to new nothing the up up. right different product you customers or more a the to speak plus million between boundaries keep we it. of continue

Joey Marincek

Thank you so much.


Rebeck on the Brad Next line one Stifel. from is

now You are live.

Brad Rebeck

of platform being as focus. talked traditionally very you've about much. you Oli, Thank key, the a frictionless the adoption

new how get versus environment difficult areas, front? as maintain efforts you build to out of some to that type may on it So deeper is that up sales include taking frictionless more into problems continue important Thanks.

Olivier Pomel

Well, And we there we're do - both, we far can to with okay lot the strengths. full very frictionless problems way. in our a But is completely like we covering a can still play to of solve right? we're can from also spectrum -

we variety different that and like products. friction being as sales. we're will So still not I customers. in done more from it's the need one very a are but far And security, have today the deployments, we bit kinds would especially frictionless summary, that with that of maybe say fully And of possible penetrated

is all of runway there for very long So a that.

Brad Rebeck

Great. Thanks very much.


KeyBanc. from the one on Next will Michael line Turits be

You live. are now

Michael Turits

Oli. Hi, and David

One of extensive change that very changing made structurally or your has from of structure. pricing Are kinds impact you any their some any any to you seeing make in pressure competitors to press? way changes the

Olivier Pomel

though. seen haven't We there any developments

- look so things, so and the I customers far. anything change haven't think the that to but boring it's said, we to seen in as possible far where, way ugly services and want it's is I landscape competitive consume to

Michael Turits

this quick a corner? that just from Can billings housekeeping, for talked quantify about some duration you boost David And extension. getting you

David Obstler

and contracts both in Both months. that a billing couple were

to So sort X both had of XX. them been of XX, in

the out that of in customers. the market way be a cetera. expect we the extended going et our to to again, we want interacting both caution year, of they any went and with but real everybody may so that the changes of And at we're couple bill related don't end sort And months,

Michael Turits

invoicing roughly? on is And what now, average duration the been what has

David Obstler

the duration we're they than a both on eight expanded, been contact one quarter, in based of longer and again, pausing months to the range I'm conclusions that, That everybody. has been has six sort range. And couple drawing not but

So months and a couple it was invoicing duration. of this it up to has eight been six on quarter


Moskowitz on one the Gregg is from Next Mizuho. queue

live. now are You

Gregg Moskowitz

Hi Okay. you. guys. Thank

that your removed now thoughts quarter we're the to what get usage So now you're a were it's was In the that the that on materially words, you probably approximately see from about trends that at cloud do QX, just great and spike levels. good to another pre-COVID back And curious this again is some another quarter quarter? to I for shock event exogenous given in move would optimization or likelihood we other need in tail any think usage similar of reoccurring to long around type point.

Olivier Pomel

I So the - in going pandemic. to happen rest the don't is vaccines to the have what of even

defer I'll that. So on

from schedule, the to the time. In of that, because they what they same on cycles terms all got our whether customers from would not the time-to-time of know. I at happen a be now, I optimization don't set work I they to optimize don't think same little But it'll again, because we there. the numbers as we early expectation same continue a be right pre-pandemic. with noisier the the than our prudent won't And we'll said, want bit way.

Gregg Moskowitz

any size And this then Okay. average Thanks new customers? of deal Oli. changes across quarter David existing just or to either

David Obstler

Broadly more of that. some did have the have We an we range increase of logos. new some, speaking,

QX. we they in performance new of increase with as over and And we steady logo us part with So time, that a part spend talked average our was of of have about grow land as our customers the the expand.

Gregg Moskowitz

you. right. All Thank


Yun Next from question Markets. of line Kim from Loop comes Capital

live. You are now

Yun Kim

Thank you.

collaboration Are impact driving was winds And an earlier and waiting… is that security question seeing solar between ops? you of there that on So, dragging summers. Oli, somewhat ops dev the events closer what's of a and

Olivier Pomel

I'm sorry.

off. cut got I you think

David Obstler

We the next. will take

Olivier Pomel

end and Maybe we David call the Yes, here. operator

David Obstler

are So ending we call. the

for in very everyone. quarter performance and with So like yes, as Again, the thank I'd the you as reset pleased setup. the the fourth full-year. well to performance We're

I closing execution, One than people. cloud been high before, year our hard difficult As we and to and ever remember most more the their employees has work are what that's we proving is for is critical truly thing to is I word, to be move a a thank to our a am that and as essential. very customers output important of to proud for want

I to and years to in their to excited XXXX Datadog So are come. easier continue and life make

you all. thank So


today’s Ladies conference this concludes call. and gentleman

You disconnect. now may