NASDAQ$DDOG

Datadog Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Datadog's second quarter results were announced, showcasing strong revenue growth and profitability.

Datadog announced strong second quarter results with a 74% year-over-year revenue increase to $406 million. The company saw growth in larger customers and launched the Observability Pipelines product.

  • Revenue was $406.1 million, an increase of 74% year-over-year.
  • GAAP operating loss was $(3.1) million; GAAP operating margin was (1)%.
  • Non-GAAP operating income was $84.7 million; non-GAAP operating margin was 21%.
  • As of June 30, 2022, Datadog had about 2,420 customers with ARR of $100,000 or more, an increase of 54% year over year.

Headline financials

Total Revenue

$406M

Previous: $234M+73.9%
EPS (adj)

$0.24

Previous: $0.09+166.7%
Capital Expenditures

-$15.5M

Previous: -$4.23M-266.7%
Free Cash Flow

-$20.4M

Previous: -$13.6M-50.0%
Net Income

-$4.88M

Previous: -$9.36M+47.9%
Operating Income

-$3.14M

Previous: -$9.89M+68.2%
Gross Profit

$324M

Previous: $176M+83.7%
Cash & Equivalents

$239M

Previous: $247M-3.5%
Total Assets

$2.65B

Previous: $2.08B+27.8%
Stock-Based Comp

$82.4M

Previous: $34.5M+138.7%

Revenue & EPS history

Datadog · Revenue · Quarterly

$406M

Q2 2022+73.9%vs Q2 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Datadog is providing the following guidance: Third Quarter 2022 revenue is expected to be between $410 million and $414 million. Full year 2022 revenue is expected to be between $1.61 billion and $1.63 billion.

Tailwinds

  • Third Quarter 2022 Revenue between $410 million and $414 million.
  • Third Quarter 2022 Non-GAAP operating income between $51 million and $55 million.
  • Third Quarter 2022 Non-GAAP net income per share between $0.15 and $0.17, assuming approximately 347 million weighted average diluted shares outstanding.
  • Full Year 2022 Revenue between $1.61 billion and $1.63 billion.
  • Full Year 2022 Non-GAAP operating income between $255 million and $275 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+4.3%

Avg return

Earnings day

+5.1%

Avg return

5 days after

+5.0%

Avg return

30 days after

59%

19 / 32 earnings

Positive

+33.1%

Q1 2020

Best reaction

-20.2%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%+38.1%+62.9%
Q4 2025+13.7%+9.8%+11.5%
Q3 2025+23.1%+27.7%-2.3%
Q2 2025-4.0%-5.6%-0.2%
Q1 2025+0.3%+2.1%+15.2%
Q4 2024-8.2%-11.8%-31.3%
Q3 2024-3.0%-3.8%+31.4%
Q2 2024+3.9%+5.9%-0.8%
Q1 2024-7.6%-6.3%-13.7%
Q4 2023+1.0%-3.8%-9.0%
Q3 2023+25.7%+30.3%+44.6%
Q2 2023-18.4%-15.9%-9.0%
Q1 2023+16.3%+20.9%+50.0%
Q4 2022-9.8%-11.5%-22.7%
Q3 2022-5.5%-5.4%+0.3%
Q2 2022+0.8%-2.4%-13.8%
Q1 2022-7.6%-17.4%-11.4%
Q4 2021+7.7%+8.7%-18.3%
Q3 2021+14.0%+20.7%+0.9%
Q2 2021+14.8%+9.0%+20.1%
Q1 2021+0.7%+2.4%+15.3%
Q4 2020-2.3%-6.9%-28.2%
Q3 2020-8.5%-9.6%+7.0%
Q2 2019+0.5%+7.9%+8.9%
Q2 2020-20.2%-19.8%-15.6%
Q1 2019+25.7%+20.6%+36.6%
Q1 2020+33.1%+29.8%+51.3%
Q4 2017-2.3%+0.4%-23.7%
Q4 2019-6.0%-5.9%-29.5%
Q3 2018+20.3%+17.2%+12.8%
Q4 2018+20.3%+17.2%+12.8%
Q3 2019+19.8%+21.1%+6.5%
Q2 2018
Q1 2018

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