NASDAQ$DDOG

Datadog Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Datadog's Q4 2023 financial results were announced, showcasing revenue growth and customer expansion.

Datadog reported a 26% year-over-year increase in revenue for Q4 2023, reaching $589.6 million. The company also saw strong growth in larger customers, with a 25% increase in customers with ARR of $1 million or more.

  • Revenue increased by 26% year-over-year, reaching $589.6 million.
  • GAAP operating income was $27.7 million, representing a 5% operating margin.
  • The company had 396 customers with ARR of $1 million or more, a 25% increase year-over-year.
  • Operating cash flow was $220.2 million, with free cash flow of $201.3 million.

Headline financials

Total Revenue

$590M

Previous: $469M+25.6%
EPS (adj)

$0.44

Previous: $0.26+69.2%
Capital Expenditures

-$18.9M

Previous: $10.1M-288.3%
Net Income

$54M

Previous: -$29M+286.0%
Operating Income

$27.7M

Previous: -$34.6M+180.1%
Gross Profit

$485M

Previous: $373M+30.0%
R&D Expense

$253M

No prior period
Stock-Based Comp

$128M

Previous: $113M+13.9%

Revenue & EPS history

Datadog · Revenue · Quarterly

$590M

Q4 2023+25.6%vs Q4 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Datadog provided guidance for Q1 2024 and fiscal year 2024. For Q1 2024, Datadog expects revenue between $587 million and $591 million, non-GAAP operating income between $128 million and $132 million, and non-GAAP net income per share between $0.33 and $0.35. For fiscal year 2024, Datadog expects revenue between $2.555 billion and $2.575 billion, non-GAAP operating income between $535 million and $555 million, and non-GAAP net income per share between $1.38 and $1.44.

Tailwinds

  • Revenue between $587 million and $591 million for Q1 2024.
  • Non-GAAP operating income between $128 million and $132 million for Q1 2024.
  • Non-GAAP net income per share between $0.33 and $0.35 for Q1 2024.
  • Revenue between $2.555 billion and $2.575 billion for fiscal year 2024.
  • Non-GAAP operating income between $535 million and $555 million for fiscal year 2024.

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 2023

Historical avgQ4 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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