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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 7, 2024

Datadog, Inc.
(Exact name of Registrant as Specified in Its Charter)
Delaware 001-39051 27-2825503
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
620 8th Avenue,
45th Floor 
New York,NY10018
(Address of Principal Executive Offices) (Zip Code)
(866) 329-4466
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Class A Common Stock, par value $0.00001 per shareDDOGThe Nasdaq Stock Market LLC
(Nasdaq Global Select Market)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



Item 2.02 Results of Operations and Financial Condition.
On November 7, 2024, Datadog, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information contained in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits

Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Datadog, Inc.
Date: November 7, 2024
By:/s/ David Obstler
David Obstler
Chief Financial Officer


Exhibit 99.1

Datadog Announces Third Quarter 2024 Financial Results

November 7, 2024

Third quarter revenue grew 26% year-over-year to $690 million
Robust growth of larger customers, with about 3,490 $100k+ ARR customers, up from about 3,130 a year ago
Announced general availability of Datadog Monitoring for Oracle Cloud Infrastructure
NEW YORK-- Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its third quarter ended September 30, 2024.
"Datadog executed well in the third quarter, with 26% year-over-year revenue growth. We continued to broaden our platform to help our customers observe, secure, and act on their mission-critical cloud applications," said Olivier Pomel, co-founder and CEO of Datadog.
Pomel added, "We are pleased to have been named a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms and the 2024 Gartner Magic Quadrant for Digital Experience Monitoring."
Third Quarter 2024 Financial Highlights:
•Revenue was $690 million, an increase of 26% year-over-year.
•GAAP operating income was $20 million; GAAP operating margin was 3%.
•Non-GAAP operating income was $173 million; non-GAAP operating margin was 25%.
•GAAP net income per diluted share was $0.14; non-GAAP net income per diluted share was $0.46.
•Operating cash flow was $229 million, with free cash flow of $204 million.
•Cash, cash equivalents, and marketable securities were $3.2 billion as of September 30, 2024.
Third Quarter & Recent Business Highlights:
•As of September 30, 2024, we had about 3,490 customers with ARR of $100,000 or more, an increase of 12% from about 3,130 as of September 30, 2023.
•Named a Leader in the 2024 Gartner Magic Quadrant for Digital Experience Monitoring. Datadog's DEM solution includes Synthetic Monitoring and Testing, Real User Monitoring (RUM), Product Analytics, Session Replay, and Error Tracking capabilities for browser and mobile applications.



•Released its State of Cloud Security 2024 report. The report found that long-lived credentials continue to be a major risk for organizations across all cloud providers.
•Announced the General Availability of Datadog Monitoring for Oracle Cloud Infrastructure, which provides visibility into Oracle Cloud Infrastructure, on-premises and other cloud environments.
•Named a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms. This is the fourth year in a row Gartner has positioned Datadog as a Leader in its Magic Quadrant.

Fourth Quarter and Full Year 2024 Outlook:
Based on information as of today, November 7, 2024, Datadog is providing the following guidance:
•Fourth Quarter 2024 Outlook:
◦Revenue between $709 million and $713 million.
◦Non-GAAP operating income between $163 million and $167 million.
◦Non-GAAP net income per share between $0.42 and $0.44, assuming approximately 361 million weighted average diluted shares outstanding.
•Full Year 2024 Outlook:
◦Revenue between $2.656 billion and $2.660 billion.
◦Non-GAAP operating income between $658 million and $662 million.
◦Non-GAAP net income per share between $1.75 and $1.77, assuming approximately 359 million weighted average diluted shares outstanding.
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. Accordingly, 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.
Conference Call Details:
•What: Datadog financial results for the third quarter of 2024 and outlook for the fourth quarter and the full year 2024
•When: November 7, 2024 at 8:00 A.M. Eastern Time (5:00 A.M. Pacific Time)
•Dial in: To access the call in the U.S., please register here. Callers are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.



•Webcast: https://investors.datadoghq.com (live and replay)
•Replay: A replay of the call will be archived on the investor relations website
About Datadog
Datadog is the observability and security platform for cloud applications. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for our customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior, and track key business metrics.
Forward-Looking Statements
This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Datadog’s strategy, product and platform capabilities, the growth in and ability to capitalize on long-term market opportunities including the pace and scope of cloud migration and digital transformation, gross margins and operating margins including with respect to sales and marketing, research and development expenses, net interest and other income, cash taxes, investments and capital expenditures, and Datadog’s future financial performance, including its outlook for the fourth quarter and the full year 2024 and related notes and assumptions. These forward-looking statements are based on Datadog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Datadog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to (1) our recent rapid growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our dependence on existing customers purchasing additional subscriptions and products from us and renewing their subscriptions; (5) our ability to attract new customers; (6) our ability to effectively develop and expand our sales and marketing capabilities; (7) risk of a security breach; (8) risk of interruptions or performance problems associated with our products and platform capabilities; (9) our ability to adapt and respond to rapidly changing technology or customer needs; (10) the competitive markets in which we participate; (11) risks associated with successfully managing our growth; and (12) general market, political, economic, and business conditions including concerns about reduced economic growth and associated decreases in information technology spending. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (SEC), including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 24, 2024. Additional information will



be made available in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and other filings and reports that we may file from time to time with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.
About Non-GAAP Financial Measures
Datadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, free cash flow and free cash flow margin. Datadog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Datadog’s financial performance. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Datadog’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Datadog’s reported financial results.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Datadog defines non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) employer payroll taxes on employee stock transactions; (4) amortization of issuance costs; and (5) an



assumed provision for income taxes based on our long-term projected tax rate. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in Datadog's geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate. Datadog defines free cash flow as net cash provided by operating activities, minus capital expenditures and minus capitalized software development costs, if any. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.
Management believes these non-GAAP financial measures are useful to investors and others in assessing Datadog’s operating performance due to the following factors:
Stock-based compensation. Datadog utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.
Amortization of acquired intangibles. Datadog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.
Employer payroll taxes on employee stock transactions. Datadog excludes employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of Datadog’s common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of Datadog’s business.
Amortization of issuance costs. In June 2020, Datadog issued $747.5 million of convertible senior notes due 2025, which bear interest at an annual fixed rate of 0.125%. Debt issuance costs, which reduce the carrying value of the convertible debt instrument, are amortized as interest expense over the term. The expense for the amortization of debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.
Additionally, Datadog’s management believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. Free cash flow represents net cash provided by operating activities, reduced by capital expenditures and capitalized software development costs, if any. The reduction of capital expenditures and amounts capitalized for software development facilitates comparisons of Datadog's liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of our liquidity.



Operating Metrics
Datadog’s number of customers with ARR of $100,000 or more is based on the ARR of each customer, as of the last month of the quarter.
We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. Users of our free trials or tier are not included in our customer count. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.
We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts, additional usage, usage from subscriptions for a committed contractual amount of usage that is delivered as used, and monthly subscriptions. ARR and MRR should be viewed independently of revenue, and do not represent our revenue under GAAP on a monthly or annualized basis, as they are operating metrics that can be impacted by contract start and end dates and renewal rates. ARR and MRR are not intended to be replacements or forecasts of revenue.




Datadog, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data; unaudited)

Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Revenue$690,016 $547,536 $1,946,548 $1,538,710 
Cost of revenue (1)(2)(3)
137,756 103,319 371,353 305,079 
Gross profit552,260 444,217 1,575,195 1,233,631 
Operating expenses:
Research and development (1)(3)
291,802 240,225 836,389 709,197 
Sales and marketing (1)(2)(3)
187,772 156,870 548,658 449,296 
General and administrative (1)(3)
52,408 51,352 145,256 136,344 
Total operating expenses531,982 448,447 1,530,303 1,294,837 
Operating income (loss)20,278 (4,230)44,892 (61,206)
Other income:
Interest expense (4)
(1,574)(1,303)(4,425)(5,010)
Interest income and other income, net37,432 29,833 109,647 69,184 
Other income, net35,858 28,530 105,222 64,174 
Income before provision for income taxes56,136 24,300 150,114 2,968 
Provision for income taxes4,439 1,670 11,962 8,393 
Net income (loss)$51,697 $22,630 $138,152 $(5,425)
Net income (loss) per share - basic$0.15 $0.07 $0.41 $(0.02)
Net income (loss) per share - diluted$0.14 $0.06 $0.39 $(0.02)
Weighted average shares used in calculating net income (loss) per share:
Basic337,562 325,557 334,779 322,395 
Diluted357,635 351,309 357,331 322,395 
(1) Includes stock-based compensation expense as follows:
Cost of revenue$6,249 $4,570 $18,169 $12,452 
Research and development90,507 79,174 266,025 229,607 
Sales and marketing30,749 26,159 88,481 75,057 
General and administrative14,685 13,211 39,200 37,063 
Total$142,190 $123,114 $411,875 $354,179 
(2) Includes amortization of acquired intangibles as follows:
Cost of revenue$1,230 $1,974 $4,538 $6,054 
Sales and marketing208 208 618617
Total$1,438 $2,182 $5,156 $6,671 
(3) Includes employer payroll taxes on employee stock transactions as follows:
Cost of revenue$118 $107 $378 $276 
Research and development6,316 5,260 23,724 15,213 
Sales and marketing1,060 2,980 3,821 5,008 
General and administrative1,621 1,342 5,199 3,450 
Total$9,115 $9,689 $33,122 $23,947 
(4) Includes amortization of issuance costs as follows:
Interest expense$912 $848 $2,672 $2,539 
Total$912 $848 $2,672 $2,539 




Datadog, Inc.
Condensed Consolidated Balance Sheets
(In thousands; unaudited)

September 30,
2024		December 31,
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$337,418 $330,339 
Marketable securities2,861,536 2,252,559 
Accounts receivable, net of allowance for credit losses of $14,310 and $12,096 as of September 30, 2024 and December 31, 2023, respectively
487,064 509,279 
Deferred contract costs, current52,225 44,938 
Prepaid expenses and other current assets51,191 41,022 
Total current assets3,789,434 3,178,137 
Property and equipment, net215,810 171,872 
Operating lease assets168,610 126,562 
Goodwill352,870 352,694 
Intangible assets, net4,424 9,617 
Deferred contract costs, non-current79,996 73,728 
Other assets20,327 23,462 
TOTAL ASSETS$4,631,471 $3,936,072 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable$92,005 $87,712 
Accrued expenses and other current liabilities120,234 127,631 
Operating lease liabilities, current27,342 21,974 
Convertible senior notes, net, current
744,858 — 
Deferred revenue, current795,824 765,735 
Total current liabilities1,780,263 1,003,052 
Operating lease liabilities, non-current197,044 138,128 
Convertible senior notes, net, non-current
— 742,235 
Deferred revenue, non-current18,404 21,210 
Other liabilities6,615 6,093 
Total liabilities2,002,326 1,910,718 
STOCKHOLDERS' EQUITY:
Common stock3 3 
Additional paid-in capital2,632,085 2,181,267 
Accumulated other comprehensive income (loss)
12,603 (2,218)
Accumulated deficit(15,546)(153,698)
Total stockholders’ equity2,629,145 2,025,354 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$4,631,471 $3,936,072 












Datadog, Inc.
Condensed Consolidated Statements of Cash Flow
(In thousands; unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$51,697 $22,630 $138,152 $(5,425)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization13,892 11,609 39,227 32,434 
(Accretion) amortization of (discounts) premiums on marketable securities(12,844)(12,965)(39,539)(26,256)
Amortization of issuance costs912 848 2,672 2,539 
Amortization of deferred contract costs13,474 10,227 37,768 28,223 
Stock-based compensation, net of amounts capitalized142,190 123,114 411,875 354,179 
Non-cash lease expense6,670 7,136 20,261 19,332 
Allowance for credit losses on accounts receivable3,800 2,786 10,374 9,097 
Loss on disposal of property and equipment9 (2)352 419 
Changes in operating assets and liabilities:
Accounts receivable, net42,428 (70,333)11,842 (10,194)
Deferred contract costs(19,153)(14,994)(51,323)(42,612)
Prepaid expenses and other current assets(1,630)6,509 (10,073)(10,314)
Other assets1,465 (998)3,636 1,243 
Accounts payable(22,994)32,371 8,576 57,268 
Accrued expenses and other liabilities10,147 (24,153)(5,709)(68,242)
Deferred revenue(1,382)58,998 27,284 98,037 
Net cash provided by operating activities228,681 152,783 605,375 439,728 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities(905,632)(621,523)(2,145,933)(2,011,857)
Maturities of marketable securities624,402 449,658 1,590,387 1,467,975 
Proceeds from sale of marketable securities(40)(240)(32)36,393 
Purchases of property and equipment(8,385)(6,113)(26,958)(17,191)
Capitalized software development costs(16,692)(8,481)(44,286)(26,279)
Cash paid for acquisition of businesses; net of cash acquired(210)(4,344)(654)(6,369)
Net cash used in investing activities(306,557)(191,043)(627,476)(557,328)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options1,257 9,870 5,201 17,404 
Proceeds for issuance of common stock under the employee stock purchase plan— — 22,507 19,986 
Repayments of convertible senior notes(24)— (49)— 
Net cash provided by financing activities1,233 9,870 27,659 37,390 
Effect of exchange rate changes on cash, cash equivalents and restricted cash3,098 (1,605)1,521 (769)
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(73,545)(29,995)7,079 (80,979)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period410,963 291,304 330,339 342,288 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period$337,418 $261,309 $337,418 $261,309 
RECONCILIATION OF CASH AND CASH EQUIVALENTS WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE:
Cash and cash equivalents$337,418 $261,309 $337,418 $261,309 
Total cash and cash equivalents
$337,418 $261,309 $337,418 $261,309 




Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Reconciliation of gross profit and gross margin
GAAP gross profit$552,260$444,217$1,575,195$1,233,631
Plus: Stock-based compensation expense6,2494,57018,16912,452
Plus: Amortization of acquired intangibles1,2301,9744,5386,054
Plus: Employer payroll taxes on employee stock transactions118107378276
Non-GAAP gross profit$559,857$450,868$1,598,280$1,252,413
GAAP gross margin80%81%81%80%
Non-GAAP gross margin81%82%82%81%
Reconciliation of operating expenses
GAAP research and development$291,802$240,225$836,389$709,197
Less: Stock-based compensation expense(90,507)(79,174)(266,025)(229,607)
Less: Employer payroll taxes on employee stock transactions(6,316)(5,260)(23,724)(15,213)
Non-GAAP research and development$194,979$155,791$546,640$464,377
GAAP sales and marketing$187,772$156,870$548,658$449,296
Less: Stock-based compensation expense(30,749)(26,159)(88,481)(75,057)
Less: Amortization of acquired intangibles(208)(208)(618)(617)
Less: Employer payroll taxes on employee stock transactions(1,060)(2,980)(3,821)(5,008)
Non-GAAP sales and marketing$155,755$127,523$455,738$368,614
GAAP general and administrative$52,408$51,352$145,256$136,344
Less: Stock-based compensation expense(14,685)(13,211)(39,200)(37,063)
Less: Employer payroll taxes on employee stock transactions(1,621)(1,342)(5,199)(3,450)
Non-GAAP general and administrative$36,102$36,799$100,857$95,831
Reconciliation of operating income (loss) and operating margin
GAAP operating income (loss)$20,278$(4,230)$44,892$(61,206)
Plus: Stock-based compensation expense142,190123,114411,875354,179
Plus: Amortization of acquired intangibles1,4382,1825,1566,671
Plus: Employer payroll taxes on employee stock transactions9,1159,68933,12223,947
Non-GAAP operating income$173,021$130,755$495,045$323,591
GAAP operating margin3%(1)%2%(4)%
Non-GAAP operating margin25%24%25%21%





Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Reconciliation of net income (loss)
GAAP net income (loss)$51,697$22,630$138,152$(5,425)
Plus: Stock-based compensation expense142,190123,114411,875354,179
Plus: Amortization of acquired intangibles1,4382,1825,1566,671
Plus: Employer payroll taxes on employee stock transactions9,1159,68933,12223,947
Plus: Amortization of issuance costs9128482,6722,539
Non-GAAP net income before non-GAAP tax adjustments$205,352$158,463$590,977$381,911
Income tax effects and adjustments (1)
39,61731,958114,65573,571
Non-GAAP net income after non-GAAP tax adjustments
$165,735$126,505$476,322$308,340
Net income per share before non-GAAP tax adjustments - basic$0.61$0.49$1.77$1.18
Net income per share before non-GAAP tax adjustments - diluted$0.57$0.45$1.65$1.09
Net income per share after non-GAAP tax adjustments - basic
$0.49$0.39$1.42$0.96
Net income per share after non-GAAP tax adjustments - diluted
$0.46$0.36$1.33$0.88
Shares used in non-GAAP net income per share calculations:
Basic337,562325,557334,779322,395
Diluted357,635351,309357,331348,846
1)Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our long-term projected tax rate of 21%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.




Datadog, Inc.
Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow
(In thousands; unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Net cash provided by operating activities$228,681$152,783$605,375$439,728
Less: Purchases of property and equipment(8,385)(6,113)(26,958)(17,191)
Less: Capitalized software development costs(16,692)(8,481)(44,286)(26,279)
Free cash flow$203,604$138,189$534,131$396,258
Free cash flow margin30%25%27%26%


Contact Information
Yuka Broderick
Datadog Investor Relations
IR@datadoghq.com

Dan Haggerty
Datadog Public Relations
Press@datadoghq.com

Datadog is a registered trademark of Datadog, Inc.
All product and company names herein may be trademarks of their registered owners.

v3.24.3
Cover
Nov. 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 07, 2024
Entity Registrant Name Datadog, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-39051
Entity Tax Identification Number 27-2825503
Entity Address, Address Line One 620 8th Avenue,
Entity Address, Address Line Two 45th Floor
Entity Address, City or Town New York,
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10018
City Area Code 866
Local Phone Number 329-4466
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, par value $0.00001 per share
Trading Symbol DDOG
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001561550
Amendment Flag false
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