NASDAQ$DDOG

Datadog Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Datadog's fourth quarter results demonstrated continued high growth at scale.

Datadog reported strong Q4 2020 results with revenue increasing by 56% year-over-year and the company generated positive free cash flow. They also announced the acquisitions of Sqreen and Timber Technologies.

  • Revenue was $177.5 million, an increase of 56% year-over-year.
  • GAAP operating loss was ($8.9) million; GAAP operating margin was (5%).
  • Non-GAAP operating income was $18.1 million; non-GAAP operating margin was 10%.
  • As of December 31, 2020, Datadog had 97 customers with ARR of $1 million or more, an increase of 94% year-over-year.

Headline financials

Total Revenue

$178M

Previous: $114M+56.2%
EPS (adj)

$0.06

Previous: $0.03+100.0%
Capital Expenditures

$1.08M

Previous: $3.5M-69.2%
Free Cash Flow

$16.7M

Previous: $13.9M+19.6%
Net Income

-$16.2M

Previous: $891K-1913.7%
Operating Income

-$8.94M

Previous: -$2.27M-294.4%
Gross Profit

$137M

Previous: $87.9M+55.5%
Cash & Equivalents

$225M

Previous: $597M-62.3%
Total Assets

$1.89B

Previous: $1.04B+82.1%
Stock-Based Comp

$24.8M

Previous: $9.02M+174.6%

Revenue & EPS history

Datadog · Revenue · Quarterly

$178M

Q4 2020+56.2%vs Q4 2019
Beat estimate in 7 of 9 quarters(78%)
ActualEstimate

Forward guidance

Datadog is providing the following guidance based on information as of February 11, 2021:

Tailwinds

  • First Quarter 2021 Revenue between $185 million and $187 million.
  • First Quarter 2021 Non-GAAP operating income between $8.0 million and $10.0 million.
  • First Quarter 2021 Non-GAAP net income per share between $0.02 and $0.03, assuming approximately 345 million weighted average diluted shares outstanding.
  • Full Year 2021 Revenue between $825 million and $835 million.
  • Full Year 2021 Non-GAAP operating income between $35 and $45 million.

Headwinds

  • Datadog has not reconciled its expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans.
  • Reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog’s results computed in accordance with GAAP.
  • Our recent rapid growth may not be indicative of our future growth.
  • Our history of operating losses.
  • Our limited operating history.

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 Q4 2020

Historical avgQ4 2020

+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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