NASDAQ$DDOG

Datadog Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Datadog reported strong Q4 2024 results with 25% revenue growth YoY, driven by an increase in high-value customers. However, GAAP net income declined due to higher operating expenses.

Headline financials

Total Revenue

$738M

Previous: $590M+25.1%
EPS (adj)

$0.49

Previous: $0.44+11.4%
Capital Expenditures

-$24.3M

Previous: -$18.9M-28.1%
Free Cash Flow

$241M

No prior period
Net Income

$45.6M

Previous: $54M-15.6%
Operating Income

$9.39M

Previous: $27.7M-66.1%
Gross Profit

$594M

Previous: $485M+22.5%
R&D Expense

$316M

Previous: $253M+24.9%

Revenue & EPS history

Datadog · Revenue · Quarterly

$738M

Q4 2024+25.1%vs Q4 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Datadog expects continued revenue growth in 2025, driven by strong enterprise adoption and product innovation. However, increasing costs and competition may pressure margins.

Tailwinds

  • Projected revenue growth of 18% YoY for FY 2025
  • Expanding product offerings in observability and security
  • Increasing customer adoption of AI-driven solutions
  • Continued investment in Kubernetes and cloud monitoring
  • Strong balance sheet with significant cash reserves

Headwinds

  • Expected continued pressure on GAAP profitability
  • Higher R&D and marketing costs affecting margins
  • Increasing competition in the observability market
  • Potential macroeconomic headwinds affecting IT spending
  • Convertible debt impact on financials

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 2024

Historical avgQ4 2024

+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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