Datadog (DDOG)

Yuka Broderick Head-Investor Relations
Olivier Pomel Co-Founder and Chief Executive Officer
David Obstler Chief Financial Officer
Sanjit Singh Morgan Stanley
Raimo Lenschow Barclays
Sterling Auty JPMorgan
Brad Reback Stifel
Tyler Radke Citi
Matt Swanson RBC
Brent Thill Jefferies
Michael Turtis KeyBanc
Kamil Mielczarek William Blair
Yun Kim Loop Capital Markets
Gregg Moskowitz Mizuho
Kash Rangan Goldman Sachs
Call transcript
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Welcome to the Q3 2021 Datadog Earnings Conference Call. My name is Adrianne, and I’ll be your operator for today’s call. At this time all participants are in a listen-only mode. [Operator Instructions] I’ll now turn the call over to Yuka Broderick, Head of Investor Relations. Yuka Broderick, you may begin.

Yuka Broderick

Adrianne. you, Thank thank third and in joining to us press Good XXXX you financial Datadog’s close. market quarter issued announced results, review release evening, after for which our we

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

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

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

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

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

Olivier Pomel

Thanks, Yuka, and for us joining thank you evening. this all

which broad-based We across are saw than expected QX, extremely segments. product existing robust customer customer We in as with growth new on was pleased well strength as across lines performance our customers strong with stronger sales. and

of give million, quarter. a Revenue These We quarter. of me quarter guidance above ARR. about range. the or our from our $XXX ago quick the in up an more, you the and $XXX,XXX Let the year was X,XXX with customers generated end XX% ARR ended of X,XXX summary increase of XX% customers high with year-over-year, of

And have free We on to business newer adopted The last very At quarter $XX year. retention of across this quarters positive QX. strong trends leverage about million. and flow with XX,XXX through cash net our customers, about which of is XX,XXX coming is model our continued from rate efficiency recent dollar-based from as be business products. growth from and was over in products. customers high increase customers Usage XXX% existing a usage their level, up continued

into record ARR billion QX. a by historical churn these some in low factors remains account, New and had we quarter rates. logos of added, ARR $X we crossed new closing all with in exceeding ARR in was Taking robust deals the with and and large milestone line

strategy Next, to in market. the resonate our platform continues

more up a products, As year using of the customers of XX% end ago. XX% are QX, or of from two

more major monitoring record products. its new that on which growth of accelerated and exceeded quarter. added or ARR are this year-over-year of amount quarter, finally strong our own logos our Synthetics, XX% remain quarter. from QX, two this But includes in in continuous our of up during in particular, the strikingly, third platform year. And last management that customers of Additionally, the XX% monitoring about infrastructure all growth Most using or products, in also log that million but Together ARR profiler, whole products and is the XX% more four APM $XXX growth quarter, the suite, mode. And user a hyper of now they ARR. landed saw which in with

Now, to product on let’s and move R&D.

continue or last a and announcements we pace. rapid User had QX, at product-related in to at teams innovate Conference. Our Dash, Annual week announcements many made We XX new

of Archives as the Management. Service for can Universal Vector product. and Pipelines, You announced Cost to Online source for releases visibility, we and CI for Apps network further summarize launched the support Monitoring Datadog device private funnel of Datadog open this Log availability nights official earnings two as Security. betas but Observability replay, briefly, review We well Management, monitoring, And we announced our Dash session analysis, press Cloud also Application description,

looking at Now a these of couple back announcements.

of for in with who Management increase anyone the involved data product behavior from will And get are teams. to product will and designers managers With expect product controlling Datadog. to implementations value Funnel flowing Datadog’s engineers, Analysis, engineering and Users applications. Cost the we them and user usefulness be managers understanding business can all from Replay expense Session we of organizations, and teams cloud useful personas. support finance benefit to not believe from Some understanding to and can Cloud interactions

complex data are We to support efforts advancing also with our customers our large-scale needs.

enrich Observability talk ago, Vector. Vector to developer the that of Vector, acquired collect, months Timber, observability Archives. transform product is automatically it of want an allows their users and open-source to and destination Online bit, I to we So, Pipelines choice. the Nine data a and route

and Pipelines as make early across accounts. possible decisions and Pipelines Observability of the customers from Datadog increased cloud send on-premise on to Vector data other and it its for before pipelines, data both and users Observability as Our ability capabilities enterprise-level value-based manage data any extends they product Vector to for seamlessly Datadog or let partner.

use customers the they their solve we and give manage direction. in deployments. for are more aiming historical investigations on control to step their we that gives archive, their also all looking storage them. growing to capabilities. being problem always or announced Online to And cloud of they how another how mention across extremely that more our availability over solution queries able for to online wanted August, storing into cost-effective complex and which execution of deep with logs This customers cost database query the run provides of monitoring, the is months and Archives are ways all in I general is always-on log-warehousing and an data XX of We online of performance databases. which visibility

in Finally, lets the net in problems developers developer for growing solve another issued in applications, in of solution time, workflows. as press is development this release evening, example announced debugging It into or product which push acquired whether live we a real our Ozcode, environments.

hard So, our can tell, we their were busy engineering their on we relentless to I focus teams as very for our customers. thank product And and in and work QX. want

to on marketing. and Now, sales moving

we and quarter. Our very teams productive, new go-to-market to X,XXX customers added be continue net this

wins. of our review QX let’s some So,

a largest contract upsell services ever multinational by over our we company. million First, had total financial value, and deal with $XX five-year

our including adoption adopting and led and has newer as them such and second success standardizing this of on to newer early customer phase as we nine with customer use is the history of of platform. Datadog, APM. to products began Synthetics of cloud our their Our This add migration the products, RUM the to products

e-commerce upsell seven-figure resulted during in pandemic, in several based of stability. sales began across implementation a competing disappointing missed a had and sites with saw their These customers improvement they use Datadog to they fashion retailer saw sales. the After outages in APM Datadog solution, immediate a Asia. we Next, chose increased global e-commerce after dramatically a and global

monitoring we had Next, in experienced in and they partnership but to a Platform. games spike now professional land a U.S.-based has Google no to to came returning back-end. experience as manage front-end the Cloud solution clients pandemic, With the and User experience. Synthetics, Monitoring nowhere and funds optimize to and APM, This Datadog with a Real six-figure a large single usage league, from along application a customer sports customer in monitoring for infrastructure therefore, had at which analyze are user with with

ad their a within using infrastructure Datadog time. a we and strict the very providers, Next, to seven-figure the customer full APM had are advertising motivated a our for SLAs of their evaluation adjust in began use this Fortune customers APM land division and conducting of After solutions and internal monitoring platform enterprise. expand real as budgets company This always-on of to with XX availability platform has rely on their company.

had equipment. we six-figure to Kubernetes with of and its Finally, plumbing This Service. had needed Azure and existing solution of visibility migrations large U.S. on Azure, complete limited migrate on-premise to a to from retail customer allowing infrastructure. the Datadog, a company Azure But to into land distributor deploy containers. this building health is and their efficiently With monitor to able them in effectively confidently APM ecosystem, legacy

want had you them more of teams generate from customers existing for to As successfully both Datadog. can once strong see, thank helping to execution. and go-to-market new value another I our quarter

on longer-term to moving our outlook. Now

between believe transformation and meeting, large it Relations is platforms problem break beat not watch helps our join presentation, week, our If meeting and to it investor our customers by everyone open-ended platform, you our for customers of in we’re are see that, over with over for the forces as summarize we opportunity our adjacent David? also the teams. help At turn we migration designed to of our time, customers would over just And our the teams. to down development, still that a made And To points. silos observability. security, next on us deployed we days solve we all years. in security long-term silos expansion platform, One Datadog of the section cloud while driving simplistic, in for not digital We still a managing opportunities be to In pure Visibility. solve breaking our differentiators our for to described CFO. call words, the growing and but CI started. with With us our other that markets inroad helps we like of simple our opportunities, building have to play and corporations Investor we the at have platform. getting to we making observability exponential in last we large we customer and you But well. website. of workflows general of developer believe much down security We is encourage to progress complexity availability I growth. cloud other have everywhere pain could And unified do used as several have I our out think a believe video between a part early the lot offers is problems of in broad the and our my in step

David Obstler

up strong logo million, Olivier. quarter-over-quarter. up had some showed Thanks, Revenue provide summary, strong, XX% we products growth. a trends the more strong. $XXX to year-over-year new also QX. were more and and In adopt broad-based and Customers generation was was very To Usage across context. continuing platform, XX%

was for and existing existing driven growth Usage expanded of our and above of customers’ products by retention XXX% growth quarter. products. strong, in of the XXth new customers QX, consecutive the adoption rate dollar-based was First, robust usage remained net very

expanded from their in and large customers have quite the customers quarters had new we QX. renewals last Our with usage significant several some rapidly,

all also strong quarter on saw we ARR accelerated a record including record QX. year-over-year regions growth compared our across all adds We adds, products. major a to geographical ARR of with of regions, And had basis in

also New logo results were strong.

Our execution enterprise had strongly ARR teams in year-over-year. up quarter, and new and commercial a this was logo crisp sales

Remember industries sizes. meaningful translate across generally We model, usage-based revenue into given our do that to logo broadly opportunities not immediately revenue. new continue see wins and customer

four or in with two of customers XX% platform products, and customers our line strategy And lastly, our or our are and historical now as we levels. more XX% using low remained are products. mentioned, resonate churn And continues Next, of more to with using customers.

Our mid-XXs and dollar-based remained in across gross is all retention our similar rate customer and products. unchanged the segments

recent compare up it year-over-year million, multiyear $XXX duration, in billings impacts $XXX were a were duration the an duration obligations, and we out RPO, And quarters, pro shorter-term The of XQ by QX no strong higher that driving year-over-year was the higher called was is year-over-year billings billing Note quarter. large in forma Remaining in increased contract several growth. driven XXXX billings terms. The of XXX% is this driven performance billings. sales or renewals with There last year. to year in year-over-year. last activity, million, with against was in XX% basis, duration but third in growing line easier year. Turning by up contract increase quarter on

As was basis about built we and a mix are more multiyear our XXX% annual. growth as Current commitments sales don’t from RPO on our towards towards shifted to away multiyear month-to-month year-over-year annually, deals team reminder, and a incentivize deals. semiannual – year-over-year

and continue is revenue better trends of RPO the can to a contracts. believe of indicator duration business billings fluctuate based the customer timing our relative those and revenue We as of invoicing to than on

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

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

Starting reconciliation a gross We earnings have non-GAAP our release. profit. in with to provided of GAAP financials

the increase in of the margin historical XX% compared efforts XX% to gross to in of Our XX%. to long compares gross gross in million, ago cloud in quarter. quarter. we last continued remain R&D QX. ago revenue million a costs, $XXX This of expense quarter drive in margin of year to margin expect gross a $XX performance. we the the typical In our XX% quarter profit margin was year XX% efficiencies XXs term, to Due mid-to our range, and the our gross was sequentially or high expect to in representing

in high XX% our growth to continue to in significantly including revenue marketing Sales $XX quarter. invest expense million engineering year-ago R&D, compared was headcount. We XX% and of or the in

frictionless efficiencies motion. land-and-expand strong see to continue our We with selling

continue events $XX to and relatively $XX X% was million quarter. in health depending XX% operating ago or G&A year increased compared for travel also we We in-person of in local was revenues year X% million compared QX, expense the $XX to or in quarter. and of or income X% going but forward travel margin a an operating plan few cost events ago on to had guidelines. Operating the million income

and million continue efficiencies. based diluted $X.XX growth front outstanding. $XX market we our opportunity revenue a the dynamic invest land-and-expand product We effort large or in strong on was Non-GAAP quarter per a to and weighted with coupled driving heavily business and is income innovation, But against us. average share see go-to-market the strong model frictionless model shares in net million XXX of

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

Now guidance these account for outlook are and quarter our our with about long-term opportunities, conservatism into the our work continue We and usual Taking hard fourth execute year opportunities. we to full XXXX. updating this optimistic highly to against applied, as we follows. the the for remain

to to income fourth million, in between in Non-GAAP and to the the is of expected For million shares non-GAAP per revenues at million, we income XXX share XX% year-over-year expected growth $X.XX net is $XX be to midpoint. $XXX diluted quarter, operating $XXX the be based million to which expect range and the range on be of per $XX share outstanding. $X.XX average million represents

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

QX, remained as strong guidance, use in we notes as Now quarter providing vacations when would assumptions. see while guidance. on the conservative more usual, end we typically usage employees winter of holidays. the the around that towards We note take slower activity growth fourth some business

our long-term model focus in-person invest related strategic our growth, events and Next, expenses and in travel going and forward. R&D for to the optimize to remains go-to-market assumes to greater aggressively

upon will employees. priority our remain depending local our we regulations health the However, highest of flexible protecting and is

approximately with federal this related to tax interest million securities provision our and taxpayer, QX tax the expense net international debt. be We quarter. that convertible expect our but we income, Regarding items expect $X.X on full of operating other and a very be interest we to provision $XXX,XXX not of cash summarize, non-GAAP of do the of to a which interest and year. below marketable in income now are QX million includes And for entities, pleased the income, approximately expect we to results $X and

our saw in products we in Our strong across and platform is performance resonating marketplace, the QX.

aggressively to available products database of monitoring launch we have our offer with continue XX the And now and invest We CI customers. in visibility, to R&D. generally

our Our execution manage with goals continues up digital And will against the strong. through their the questions. begin Q&A. to that, we our help cloud And for efforts and Operator, remain our ability go-to-market let’s call migration customers open expand. transformation to


comes Instructions] first Morgan from Thank And you. question Singh from Sanjit [Operator our Stanley.

is line Your open.

Sanjit Singh

theme questions taking often I Olivier. observability really a user much strong for in question of It’s kind the of quarter. And another we that conference. on the had XXXX you word coming higher-level the question off I more it product-related the Thank hear really, of more is and guess XXXX. for of in and congrats a

of different come IT? Or finding domains you the sort I’m because bringing you potentially bring or to kind it starting have refer domains, are from more to to plenty mining terms opportunities of on of potential solutions, the software analytics of you to different you’re process a those guys have other are obviously into think wondering to perspective? do in opportunity. of Datadog log observability from different in observability talking lot going of it’s I in we’re data pipeline When about aspects your perspective, domains. guys And your whether

Olivier Pomel

cases, are with know, believers roof. transformation, all breaking is we to more that personalized We the down we’re about strong going bring and digital application silos same more use the And business. run under the

to understand understand the And business, teams in. to has you which so more many gives can everything application, that happens that an if around you opportunity the you – bring

market do, new of productized term, some products us I for are interesting But mean haven’t to today. there’s step-by-step. we implementing it the and to things still long already all customers we’re see more that and I and some beta, Datadog to we of yes, use ones on cases our So in would we want have brought yes, do. we’re today, that still on taking can and focused say, we are much the do these

Sanjit Singh

that getting Understood. at behaviors the last And coming saw has the back the the off then last is expansion normal the of talking to summer, of sort been been even over usage the pandemic sort about some several trends I think theme in and line slowdown of cohort of we’ve sort higher that to end that of seen we usage of quarters, have the pre-pandemic – and the the with levels. and trends reverting than pre sort

going cohorts we sort of continuing year? are sense of you contracts? of the the last different what And end are in or the sort just have that are usage? than seeing different sort recovery off across longer-term you how just those – commonalities these what seeing of of it of the year, into changed? in end of As stand sort Is sort cohorts Or

Olivier Pomel

previous it between earlier, cloud main two you ingredient. we to underpinning that recent actually of There’s we success few resumed pace the trends many identified was. see the what you’ve quarters transformation the cohorts. the the the that migration digital in in past cohorts first that fact see in are has The differences That’s as the – where seen not and most

and that basically and reaching successful growth ingredient propping solve is for second our are newer customers. and The products are are scale up larger our larger problem we as our being a

really So the two success the you’ve is seen. combination things drives of those what

David Obstler

about have That’s been and already, client two-thirds, usage products. over And time. products of we of the new had increase pretty continue usage be about to adoption one-third consistent our

to So, we of continue path. adoption types see similar

Sanjit Singh

those in much congrats strong David, on of and Makes some and very helpful, QX. some light two very vectors. split shedding you between terms Thank the on sense the


next And Barclays. from Lenschow from our question comes Raimo

Your line is open.

Raimo Lenschow

i.e., And mentioned Hey of guys their you, thanks. the Olivier, much this they’re actually of how renewals of you like by we differentiates can large on what then? – kind those And think you you how of from Congrats as platform. smaller describe have from heavy much your quarter. is that users you estate you customers just monitored Datadog. getting me kind of obviously, would some like well. kind penetrated of are Can that saw

that drivers a the think thing? maturity what need just So to here that is are Or about? we

Olivier Pomel

little depends they’re we’ve obviously. I on think But for a customers, clear some the of on customers it’s bit the that very it Datadog. mentioned, standardizing

in five-year very substantially a for to this deal, Datadog. They’re us, on have transformation cloud what customer and the us. and this where that large which far know that mentioned, years they is cloud I basically they’re five is bring shows is still is in everything going. atypical But their they standardizing that into plan As somewhat those over enough a they

So customers and our right cloud are it. the started what’s migration, going recently. what’s a And years we far have we now, those large that’s But in to think – that more many the scale a larger enterprise large few behind happen their – of now. that cloud enough migration this see the customers representative that’s only of our from of from – Again, at of it’s

Raimo Lenschow

points like I Like material, much. XX this materiality, like a for at to that us points too a some billings but If swing, a swing would some pointed slightly David. not do could be you it bit? that year quantify you little able at help one Is like Like – XX is a were look last then there? year? think And out you you the growth, duration that you Yes. better

David Obstler

seven we last months some in said had duration was plus year sort we – down contraction we of COVID had or then billings generally What in when large the had, been minus in And on of duration now billings that sort before range in back eight months. happened into The we’re that contract duration. had into we to the in thing up same same sixes. seven the

multiyear duration, contract of number complemented we that said expanded this multiyear’s in maybe a and terms bit the quarter, the which Although in contracts, quarter. happened RPO the unique by of this was

Raimo Lenschow

Congrats. perfect. done. Okay, Well

Olivier Pomel



our And Goldman Sachs. from Rangan from next Kash as question comes

is line open. Your

Unidentified Analyst

various in is question the [indiscernible] one, The is, Kash. for for sitting reacceleration? this all have here, about the the is can we revenue there any most take but to of for acceleration of puzzle to terms talked Hi, that contributing way the factors you drove number have influential us pieces stack influential? rank please rank revenue What in them list You you been here? versus

Olivier Pomel

The before highly right? fully migration had pandemic, dependent control, the factors speed business mean something of number that’s this is around one. main we I to the are don’t environment the And on resumption and it that’s two one, cloud the that really us.

in call, is and factor decide the together our products we that $XXX log APM ARR. mentioned – second we’re products reached on the and more new million The success our of than

are fast. growing of hypergrowth very company. going we after only not also but also in but say are they very products revenue the fast, the quite coming that, And bit contribute So more they to have a up like they

the second factor. is this So

this a larger with we like demand successfully go teams, can we The third go-to-market the solving on is that, larger after opportunity. environment us all there the with actually being of problem, and that and factor scaled back the so

those growth, combine three. direct get That’s you how yes. generation all of So the

Unidentified Analyst

motion in hyperscalers a growth? can what as well, important Thank signed contributing go-to-market deeper become you. comment the you you can How You taking Thank – GCP And those of important others. on our Azure you? to extent please partnerships that they to and of year, questions. with terms how as relationship follow-up, last you. for Thank for be

Olivier Pomel

with see – we’ve done number what a say we no deals. drastic of So from it’s before. seen that the hyperscalers change there’s continuation of what It’s in before. a would I we’ve

I place, think areas, the in I to a are think they cases. in But terms bit more but more capacity they from would used capacity say I they put in and than we deliberate in They’re forward. for online, growth don’t before partnerships all are like little have be set little part some these bit are. now defined not we partnerships a maybe we’re – model not to upside of any are specific our they some going of them – where attached

think they’re investing are we we but they the do, main not part So what of we We keep go-to-market. partnerships. in way those

Unidentified Analyst

so it. much. Thanks Got


next your Sterling from JPMorgan. And question from comes Auty

Sterling Auty

Yes. Thanks. Hi guys. in of that that products? growth their growth is in in I’m more how characterize growth existing saw just customer of terms you hosts much adopting of and quarter. the Datadog you from coming your expansion Can the curious number cloud versus

David Obstler


products come we that size time. two-thirds that’s bought. their come similar of already had the about that use from to the think And their I has our – customer said And products, comparing of one-third consistent growth. quarters, about of of and today that’s they has adoption previous the previous pretty over of versus the expansion from new been year comes from

splits. that how that’s So

Olivier Pomel

how how roughly to At you see and the back growing, going them. providers know of the the, are we’re compared you cloud

an you additional getting we’re gives the growth of idea from additional sales but it coverage, the of capacity product around our the lift – So basically suite. also

Sterling Auty

one sales. capacity to Understood. efforts sales And you then you to one quick where hire, your are continue growth? and fuel the to on Can characterize on

Olivier Pomel

we have last doing capacity quarter. than quarter we’re much next – more Well, less than so and

we’re investing So heavily. still

the and also We’re but the of pathing we and in of growing career in team. so investing those only the all also enablement retention, we’re training most can go-to-market hiring make the teams. not the And our of

from where big investing. quarters previous no no there’s there we change So again, – keep

Sterling Auty

Got it. Thank you.


Brad comes Reback Stifel. from next from your And question

open. is line Your

Brad Reback

Oli, networking the much. deal very much potential thanks that quarter, is have Great, in services that upside the large there? that even like with Or how influence pipelines massive and it products on-prem you newer on that client? financial signed decision longer-term on

Olivier Pomel

workloads that client, in not into bit of they’re their along that without the client migration. would a getting environments end. specific cloud their cloud detail, With in a And into a I is, moving too say, further it’s much much. Because lot

a that with our this For is time a of call, us now. we’re some something this deal, is of other bit right that quite and mentioning on not big spending this customers they’re on

you us hear – about further probably would it So say. will calls, it in I

Brad Reback

That’s Thanks very great. much.


question next from from the Citi. Radke comes And Tyler

if Your phone. your on line mute, is Tyler, please unmute open. you’re

Tyler Radke

hear now? Hi, there. you me Can



Tyler Radke

Sorry been larger a I high the I’m to Or And obviously know that of of called at demand you specific the a you kind strength enterprise? the simply some I product this on number mainly force you you’ve maturity organically? this about investment? just lands. is about driven saw sales that. kind out the point think X-figure think more you’re where do wanted of including growing And at of set curious, seeing I by just go-to-market talk is a lands. level, the this

Olivier Pomel

strength what the It’s it solves customer that So – easy in product a very of and well it’s everything, obviously, bit so fractions. problem the to problem right? rest the really is we adopt on not

deliberate so with we’ve just don’t you at about at company still So the also that’s That’s go-to-market new. as customers. you product time fast to have whole there. your that is be built But growing customers, the these that a the you go-to-market and team teams, stop it’s not the what way very grow

of the growth. have lot a drive data You already

You also way ones. go out to your new of acquire

new teams customers. that we’re also go-to-market the And reward focus we’re we teams to make way on and the the teams landing for so always tweaking sure the

become growing we of keep it of success that that comes make when product tweaking over our to victims within the yes, So organically don’t we sure customers. to time

Tyler Radke

a the Yes. just influencing security And making lot Dash, To really obviously, product with these application that these map road And consideration what follow-up around I’m at just important products. see larger curious, map deals? you talked an of road security is on customers that. these is about extent kind where they product a going? of commitments, your

Olivier Pomel

starts and DevOps more more, early It up but of security. convergence for coming in and it’s conversations still the

what data. the But roof we a of bring they sustainability. talk second customers, it’s they security with They Like is same have step. most of with as five when a observatory start start a today. to conversation. still alignment strategic So They under start you customers want the part with today, security year about then And cloud. actually with for our the

Tyler Radke

Thank you.


And from Hedberg your question RBC. from next Matt comes

Matt Swanson

your cycle? do maybe differentiated debugging could the Yes. could more Thanks. that production. from Ozcode. that actual that’s And Matt DevOps there? of automated the for you beginning a on the my you you in Swanson This into go management congratulations product? Could just as I well specifically, Is as of bit the little And new of you kind said product? know part Or on life what is it Hedberg. technology incident merged actually quarter acquisition into adding, Matt the get stages is Because you’re

Olivier Pomel


breakpoint the actually and way So it’s a are place laptop and code is where things it what the can – you doing the like your use in stack the that in it’s code and that. meaning same in is see debugger debugging and the like stands a on variables the

You see in technology environment. do that that production you lets

the in actually ID, going in time. you tell is your and to moment that the at you current code that on – production breakpoint going So the can code in at what’s you can

the update code. to have don’t You

have don’t to software. shift You

that are as is technology, something to do And that well. used environment. it’s doing production So development developers in in lets you this

also us. to internally. It’s work something interesting some that very we’ve it’s corresponds doing been to So

live So which the acquisition. there’s technology, is that things us to interesting. very are debugging three about Ozcode interesting One is

this newer our would newer by quite And bit. first – it’s in engineering And interesting third market. Israel. team that a our and I the a that’s is thing focuses that which on .NET, us specializes the to invest that do customers. very quite grow capability say be And is enterprise we is that is team innovations large underserved is intend going to to is many to in that Second then of often interesting

Matt Swanson

That’s we really helpful. DevSecOps. other that and companies. thinking I we’re I feel about a One from level, more like when it’s thing, term from hearing a higher more more more think guess,

to try that the spend be a who to breaking power, see trying most vendors. there budgets build power? those certain between kind you wins the consolidating has down deciding across So companies to gravity to core have three to is going – I way most those mean, security as three do kind you think areas. need area establishing more guys more I’m developers that at of of? you consolidation? you and the X think of about sections. Is there the of down silos Is as to those the be just think What Do core

Olivier Pomel

Yes. many more Well, three are other there there’s massive. things I any role. than think is that have been developers One

everything populous the So else. have salary mass being and most they the and by virtue largest power of

quite you serving yield a So of bit in developers. get

the three the massive space. pure-play friction The applications. is a for all the instrumenting third is vendors thing of And is on think security in I terms that we logs. to compared that thing is strong that volumes amount And data second massive of have advantage for

Matt Swanson

Fantastic. you. Thank


your And to comes Brent from Thill question Jefferies. next

Your line is open.

Brent Thill

numbers the you themes new that in the I that there numbers, accelerating. also Is the in striking you results haven’t all that seen. of maybe the this would the underpinning call and there we numbers you to account are quarter? seeing any overall strength obviously anything kind what common David, see was to guess, you’re is that can’t

David Obstler

– the a increase, are I we quarters, began acceleration product of product more cross-sell clients. adopted the to number a getting the of showed things there, and the it’s number at accelerate time, caused be the continue which as products our to usage as same adopted of by around and combination gets products and to strong, lands strong cloud think success of of use other then of over the budgets and migration, which a suite

year’s across all regions from time last So the the geographically and type at the of caused of results. strength the acceleration combination all post-COVID same those of

Brent Thill

migrations, one Are is maybe cloud continue come? a or your just it yet even to multi-cloud still we you to to And about things of strategy. that dual-cloud Olivier, hear the for that is help Or business? strategy as to relates starting seeing

Olivier Pomel

We it. definitely see

to initially, start that have to multi-cloud very they’re going Our though they clear weight the They customers going fact on often more are be another. multi-cloud. even are in one than cloud

to third frequent a in major their always X% the goal or be on-prem it’s they cloud to whether start the make have XX% private have But in customers – the they of to other. of pick for X% and cloud volume So the maybe two migration when be the investment choose road, down a further other able to or their to, cloud. further in would option is that even one on

hear mentioned our more So the like some getting making there. definitely much the further ones customers. that see our a and as And decisions multi-cloud plan – of this is today, see we from we we call more along of customers on we’ve all we pretty see that them

Brent Thill

Thank you.


And our next from question Turtis comes to KeyBanc. Michael

line Your open. is

Michael Turtis

force. the Hi just questions want guys. overlapping I sales to ask two about

how think Tom the the buying hand, force, development may primary at this business a and but different the buyers On with addressing I centers and Dash, how you about between single bit talked have and also, security, one to reps sales are probably, and force. products. is sales sell more the transition And force now have frequently for users. time from that product many sales in the sold essentially a really one so evolving That’s tough

Olivier Pomel


specialization. we of the a sales do the specializing in past still not have security, call, little discussed might to still We’ve bit think force. we’re little bit we a today, – So we with

need yet. drastic testing to but we few just the felt haven’t do anything things, We’re a

have be that, today, to a the has with those of adoption do frictionless. various well it sales of the the products lot carry of For tends our And products. to the the works quite to same rest that force products, fact

land products once. all And so we don’t the at need to

bank to every to land is do and of back come over time. few. sale get there heavy then going lift little adopting time a them they not more customers we from as a single more as need bit nudge if values more start had to the our as And and we but Datadog, We’re to a big

specialization, So today, yet. no

over it yet likelihood some likely with it there. haven’t is all done in think to happen time we I of but anything security, –

Michael Turtis

you as see that? Or an in product, monitoring force I turnover I starting sales do but accommodate with adapting been product you more you sense. your this force portfolio? a that essentially to said, And traditional sales are mean the was that’s diverse, to sales same find force much that is – Is that selling wider observability the to in always

Olivier Pomel

The force Yes. adapting. is sales

mostly the And bit his been a working when. target what of Adam it’s bringing think with on Blitzer similar I at previous product of sales the scene that the problems actually to the to is experience what his talk know force the force, has enable on, things working one they company. to us basically we’re who sales to so to behind and about structures

Michael Turtis

Olivier. Thanks,


from Mielczarek question Blair. next from your Kamil And William comes

Your line is open.

Kamil Mielczarek

quarter. about and It’s for the thanks deal across to question taking the on congrats adds ARR amazing hear record Hi, my and record platform. the great the

relatively changes given especially scale can any pricing? largest over customers years? how about and your two you in pushback past around of the on given Datadog, competitors by higher on cost? standardize data particular As your levels of conversations the made modules you’re pricing changed growth have some – and where the And Are there the talk rapid maybe seeing rapid

Olivier Pomel

pushback that customers’ explode for most item thing Well, you’ve is which data going that Overall, one just the to to are is which the customer. the than biggest correctly usually much there’s faster revenues are is module I the one up. mean, for the go to be volumes – that happens identified, going

to be keep. need so number meant these in different we solve need And with differentiate from to announced perspective can Dash these control things target were so them technical able are help to of a they to they to a more way what they our give or last of – week that. we’ve to at problems actually, A customers

time pipeline be of archive is of address to one about to that. as of observability live for logs them. more talked I’ve another one there’s a them. And The So going

any customers. control our make from have a product new innovating ways give to more didn’t perspective but changes, to to we these we pricing of are So and problems solving

Kamil Mielczarek

product It’s cadence broader on investments the the I there. changed there’s accelerate about up over this about product year? Thank the lot R&D to pre-pandemic opportunity And you know well XXXX of the fruits a R&D how anything the And expense lot future innovation, of Dash, makes detail on elevated up And your has past give spend? above year-to-date, It to XX% we to following great versus is introductions? around of but of these think should the growth. of decision level see targeted level us more a the you. drive of spend sense. of the levels can the Datadog with numerous announcements than more

Olivier Pomel

more very and fast as the we so the retention problems products growth confident that that on happens lends problems, could very And a going we’re recruiting as to and we Well, to we’re solving on high our It bigger platform engineering those side. itself side. can sustain successful. making

when those them we to of quite bit go a fast the scaling get as engineering engineers in when I’ve as important products there’s can. you the lead new when time time hire now a and between So you because a It’s scaling teams fast predictor now side. on output like years time good the mentioned of calls is the hand. other from two on maybe other we’re hiring

started. So we’re we That’s doing why should get it.

Kamil Mielczarek

That’s great. you. again. Congrats, Thank

Olivier Pomel

Thank you.


from Kim Loop from Yun Capital comes And our question next Markets.

is line Your open.

Yun Kim

by for them you’re on the bigger faster Congrats all couple you. all me. Oli, nearest of well magnitude. But or than Great. already as growing of Thank a quarter soli competitors your near-term than

trend the enterprise your deal led to standardization largest about in talked history. that company’s You

than seeing So there just into with rather organization? trend more And a enterprise are seeing you selling more and more large that of are displacement opportunities? Greenfield as out more standardization result, large you simply and deals

Olivier Pomel

big replace of But was of displacement environment still we’re is still it’s And that role – that a or But is happens, it of when that’s has because unsuccessful the to of cloud to the bulk and When bulk definitely environment, the of into more valid right? today, their of legacy cloud going to standardization that what used adoption would other we maturity to the of of the part our We on shop something new the product, depends I think – come, a side the there some happens, deployments that. than of place. behind, on lot that’s in would is growth occasional our going replacement cloud of again, on tools. still business into rationalization still part our the net say standardization with to what left takes And small the is a migration I do. typically going play it in the the the So come. it’s – we be is years the customers’ side previous say.

Yun Kim

some like, So just product, they of of many have the organization your of observability have your parts having seeing products your other may instance, you are the customers, the existing well. your of for with customers a for competitive of vendors mixed along products some as

one needs So just platform. the time before on standardize of customer it’s to a matter

Olivier Pomel


have example So They’re Their what the other like displace we to have we’re a on-prem to It’s going Splunk going things. for land Elastic going have enterprise, in large a there day the into the – is see from to given. [indiscernible] as start – we’re not older cloud somewhere well. a world. and to going and we in is BMCs that to collection of one. are They’re environment. ATMs. of older and any to a going time But environments on-prem have They’re monitors infrastructure going

we’re to products those mass and customers critical the We’re environment solution starts are going in displace a cloud, going standardizing. as be that to reach in going be to the and this

cloud that migration So doing the like are we along we their customers that see, years one few far from are are that think ago. today what – but started we ones a who in the and

is this low the years be So come. to we going in think to

Yun Kim

And quick just a cash dynamics. is question increasing. you. contract link flow Obviously, on David, Thank your

number see of cash towards more weighted the deals. or and expect going forward? more the – less be more flow to year maybe of seasonality greater getting half Do more you large more You’re second

David Obstler

through annual said years, we’ve multi gone I We go think events. don’t billing No. had that – collecting the script even some we’ve company the we still We more in most. – financing for though there’s at

the So really change talked we about, in long-term is little, dynamics. billing very there as

at see of I cash of of in and end duration a go end the tend seasonality. dynamics either in through much to the the year too the flow we sales longer our wouldn’t then But sales cash seasonality change we contracts In the of see – terms little collect quarter. cycle first or of when bit flow, the year from

Yun Kim

Okay, so much. great. Thank you


And our next question from comes from Moskowitz Mizuho. Gregg

Your line is open.

Gregg Moskowitz

on go-to-market. you. to Olivier, Thank Okay. follow-up security the just

to for force is, product I’m readiness components channel of sales been and security monitoring today? security Your are your some base of a newer. GJ installed you while, now platform whereas cloud how assess your what your [ph] your the to security would the sell much of other has But wondering

Olivier Pomel

customers. customers by developing a making that’s That’s they customers it with applicable broader we – land design, product Today, that it’s first. really of being set when still adopted it by And don’t and we a at keep keep – our right? already it, we to is as we let that

are soon getting though we’re starting full of we’ll the – the VX to platform. security where have point our We cloud

I Once we’re missing that still we’ve side done a component. general think haven’t that, for look in we little that, some accelerating the availability we application I the discussing maybe earlier doing and bit specialization security been this of have go-to-market the call, think of we yet. into the but

Gregg Moskowitz

Okay, perfect. Thank you.


Sachs. next the from question Goldman Rangan comes from Kash And

Kash Rangan

here. two my Thank for so today. it’s you colleague suppose for one and I much taking with along a me deal

some changes, you contracts to embolden way having these that last Datadog. a separate channel if in pursuit go-to-market also, I in signing at look of Thank and demonstrated in year portfolio, as much. Any believe. clearly sales XXXX, new a added apply so And curious at calendar see had are you or that mega mega enterprise deals. you that pursue you’ve of look enhancements as you enable you’re look five you to is the change tweaks a us I’m a including the As the at effort you’ve of week, customers products and XXXX. to to to look contracts demos go-to-market specific pointedly

Just six was started the friends or doing definitely if and see fruitful. years you wondering five, back it so, opportunity. Salesforce some of like at our same I’m kind

Olivier Pomel


different we’re over definitely that business and – definitely we them So something all, so points to that’s of are some of becoming on like people going time. with I standardize mean, we do their customers the relationship around, yes, I I – are than are mean mean, a see us we first they platforms differently one big just of – team using. their

see we of large So a And that’s customers. see. change the number across we our

as and of smaller, folks the mean, that folks very we terms that ways are actively them. every that segmentation grow want and we structuring we’re the logos after that pursuing new are very do of going little biggest we we’ll that own might for them. not going that they And have internally looking we’ll when I internally going seek. after need be more But customers, more they different And the them reaching deals We those this commit is in so have – have growth something larger to as do their planning when own large folks some deals. we on purposes. of today not growth bit for a Now after – of need want we are have customers to the their organizations, teams do focus that, one. customers. deal, segmentation our our still When we those But for

product grows we’ve and very with our is throughout Our and well year the customers. that product our product sticky, then seen our very

there’s long-term large, on in end for very our point pushing So very no deals.

Kash Rangan

Thank Congratulations. Wonderful. you, Olivier.

Olivier Pomel

I think these call. we’ll the on think good words, close I And

with want to this for to – the thank you us I for So call. all sticking

is the their and which We’re team the all performance thanks Datadog quarter, Datadog’s hard all obviously and work. at to this happy very with worldwide

a want everyone quarter. well see to very, for thank we’ll done. you you. I so next And very congratulate all against Thank and everyone, And job


this participating. concludes Thank for you, Thank and ladies today’s conference. you gentlemen,

You may now disconnect.