NASDAQ$DDOG

Datadog Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Third quarter revenue grew 61% year-over-year with strong adoption of products and robust opportunities with new customers.

Datadog announced financial results for its third quarter ended September 30, 2022. Third quarter revenue grew 61% year-over-year to $437 million. There was strong growth of larger customers, with about 2,600 $100k+ ARR customers, up from about 1,800 a year ago.

  • Revenue was $436.5 million, an increase of 61% year-over-year.
  • GAAP operating loss was $(31.3) million; GAAP operating margin was (7)%.
  • Non-GAAP operating income was $74.8 million; non-GAAP operating margin was 17%.
  • As of September 30, 2022, Datadog had about 2,600 customers with ARR of $100,000 or more, an increase of 44% from about 1,800 as of September 30, 2021.

Headline financials

Total Revenue

$437M

Previous: $271M+61.3%
EPS (adj)

$0.23

Previous: $0.13+76.9%
Capital Expenditures

-$25.2M

Previous: -$7.55M-233.8%
Free Cash Flow

-$51.2M

Previous: -$13M-292.7%
Net Income

-$26M

Previous: -$5.48M-373.8%
Operating Income

-$31.3M

Previous: -$4.9M-540.3%
Gross Profit

$343M

Previous: $207M+65.5%
Cash & Equivalents

$295M

Previous: $287M+2.7%
Total Assets

$2.8B

Previous: $2.19B+27.5%
Stock-Based Comp

$101M

Previous: $44M+130.4%

Revenue & EPS history

Datadog · Revenue · Quarterly

$437M

Q3 2022+61.3%vs Q3 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Datadog is providing the following guidance: Revenue between $445 million and $449 million and Non-GAAP net income per share between $0.18 and $0.20, assuming approximately 347 million weighted average diluted shares outstanding.

Tailwinds

  • Revenue between $445 million and $449 million.
  • Non-GAAP operating income between $56 million and $60 million.
  • Non-GAAP net income per share between $0.18 and $0.20.
  • Approximately 347 million weighted average diluted shares outstanding.
  • Revenue between $1.650 billion and $1.654 billion for full year 2022.

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 Q3 2022

Historical avgQ3 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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