NASDAQ$DDOG

Datadog Inc · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

Datadog reported Q2 2025 revenue of $827M with net income of $2.6M and diluted EPS of $0.01.

Revenue grew 28% to $826.8 million in the quarter ended June 30, 2025. GAAP net income was $2.6 million as higher R&D and sales investments offset gross profit growth; diluted EPS was $0.01. The company cited platform adoption across observability, security, and AI monitoring workloads.

  • Q2 revenue $827M (+28% YoY).
  • GAAP net income $2.6M; diluted EPS $0.01.
  • Operating spend rose with product and go-to-market investment.
  • Subscription revenue mix supports recurring growth.

Headline financials

Total Revenue

$827M

Previous: $645M+28.1%
EPS (adj)

$0.01

Previous: $0.12-91.7%
Capital Expenditures

-$23.9M

Previous: -$18.6M-28.7%
Free Cash Flow

-$21.3M

Previous: $25.3M-184.2%
Net Income

$2.65M

Previous: $43.8M-94.0%
Operating Income

-$35.5M

Previous: $12.6M-381.3%
Gross Profit

$661M

Previous: $522M+26.6%
Cash & Equivalents

$489M

Previous: $411M+19.0%
Total Assets

$5.82B

Previous: $4.41B+32.0%

Revenue & EPS history

Datadog · Revenue · Quarterly

$827M

Q2 2025+28.1%vs Q2 2024
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Technology outlook emphasizes platform adoption, R&D investment, and operating leverage.

Tailwinds

  • Cloud and security workloads support durable demand.
  • Recurring revenue mix underpins visibility.

Headwinds

  • IT budget scrutiny may elongate sales cycles.
  • Heavy investment can pressure near-term GAAP profitability.

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 2025

Historical avgQ2 2025

+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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