NASDAQ$DDOG

Datadog Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a 25% year-over-year revenue growth and strong growth of larger customers.

Datadog announced its Q3 2023 financial results, reporting a 25% year-over-year revenue increase to $548 million. The company saw robust new logo bookings and a continued focus on solving customers' DevSecOps challenges. There was also strong growth in larger customers.

  • Revenue was $547.5 million, an increase of 25% year-over-year.
  • GAAP operating loss was $(4.2) million; GAAP operating margin was (1)%.
  • Non-GAAP operating income was $130.8 million; non-GAAP operating margin was 24%.
  • As of September 30, 2023, Datadog had about 3,130 customers with ARR of $100,000 or more, an increase of 20% year-over-year.

Headline financials

Total Revenue

$548M

Previous: $437M+25.4%
EPS (adj)

$0.45

Previous: $0.23+95.7%
Capital Expenditures

-$17.2M

Previous: -$25.2M+31.8%
Free Cash Flow

$5.44M

Previous: -$51.2M+110.6%
Net Income

$22.6M

Previous: -$26M+187.1%
Operating Income

-$4.23M

Previous: -$31.3M+86.5%
Gross Profit

$444M

Previous: $343M+29.5%
Cash & Equivalents

$261M

Previous: $295M-11.4%
Total Assets

$3.54B

Previous: $2.8B+26.7%
R&D Expense

$240M

No prior period
Stock-Based Comp

$123M

Previous: $101M+21.5%

Revenue & EPS history

Datadog · Revenue · Quarterly

$548M

Q3 2023+25.4%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Datadog is providing the following guidance: Revenue between $564 million and $568 million; Non-GAAP operating income between $129 million and $133 million; Non-GAAP net income per share between $0.42 and $0.44, assuming approximately 355 million weighted average diluted shares outstanding.

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 2023

Historical avgQ3 2023

+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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