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, Nov. 7, 2024 /PRNewswire/ -- 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,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
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 profit
|
|
552,260
|
|
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
expenses
|
|
531,982
|
|
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, net
|
|
37,432
|
|
29,833
|
|
109,647
|
|
69,184
|
|
Other income,
net
|
|
35,858
|
|
28,530
|
|
105,222
|
|
64,174
|
|
Income before provision
for income taxes
|
|
56,136
|
|
24,300
|
|
150,114
|
|
2,968
|
|
Provision for income
taxes
|
|
4,439
|
|
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:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
337,562
|
|
325,557
|
|
334,779
|
|
322,395
|
|
Diluted
|
|
357,635
|
|
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
development
|
|
90,507
|
|
79,174
|
|
266,025
|
|
229,607
|
|
Sales and
marketing
|
|
30,749
|
|
26,159
|
|
88,481
|
|
75,057
|
|
General and
administrative
|
|
14,685
|
|
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
marketing
|
|
208
|
|
208
|
|
618
|
|
617
|
|
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
development
|
|
6,316
|
|
5,260
|
|
23,724
|
|
15,213
|
|
Sales and
marketing
|
|
1,060
|
|
2,980
|
|
3,821
|
|
5,008
|
|
General and
administrative
|
|
1,621
|
|
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
securities
|
|
2,861,536
|
|
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, current
|
|
52,225
|
|
44,938
|
|
Prepaid expenses and
other current assets
|
|
51,191
|
|
41,022
|
|
Total current
assets
|
|
3,789,434
|
|
3,178,137
|
|
Property and
equipment, net
|
|
215,810
|
|
171,872
|
|
Operating lease
assets
|
|
168,610
|
|
126,562
|
|
Goodwill
|
|
352,870
|
|
352,694
|
|
Intangible assets,
net
|
|
4,424
|
|
9,617
|
|
Deferred contract
costs, non-current
|
|
79,996
|
|
73,728
|
|
Other
assets
|
|
20,327
|
|
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 liabilities
|
|
120,234
|
|
127,631
|
|
Operating lease
liabilities, current
|
|
27,342
|
|
21,974
|
|
Convertible senior
notes, net, current
|
|
744,858
|
|
—
|
|
Deferred revenue,
current
|
|
795,824
|
|
765,735
|
|
Total current
liabilities
|
|
1,780,263
|
|
1,003,052
|
|
Operating lease
liabilities, non-current
|
|
197,044
|
|
138,128
|
|
Convertible senior
notes, net, non-current
|
|
—
|
|
742,235
|
|
Deferred revenue,
non-current
|
|
18,404
|
|
21,210
|
|
Other
liabilities
|
|
6,615
|
|
6,093
|
|
Total
liabilities
|
|
2,002,326
|
|
1,910,718
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
Common
stock
|
|
3
|
|
3
|
|
Additional paid-in
capital
|
|
2,632,085
|
|
2,181,267
|
|
Accumulated other
comprehensive income (loss)
|
|
12,603
|
|
(2,218)
|
|
Accumulated
deficit
|
|
(15,546)
|
|
(153,698)
|
|
Total stockholders'
equity
|
|
2,629,145
|
|
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,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
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
amortization
|
|
13,892
|
|
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 costs
|
|
912
|
|
848
|
|
2,672
|
|
2,539
|
|
Amortization of
deferred contract costs
|
|
13,474
|
|
10,227
|
|
37,768
|
|
28,223
|
|
Stock-based
compensation, net of amounts capitalized
|
|
142,190
|
|
123,114
|
|
411,875
|
|
354,179
|
|
Non-cash lease
expense
|
|
6,670
|
|
7,136
|
|
20,261
|
|
19,332
|
|
Allowance for credit
losses on accounts receivable
|
|
3,800
|
|
2,786
|
|
10,374
|
|
9,097
|
|
Loss on disposal of
property and equipment
|
|
9
|
|
(2)
|
|
352
|
|
419
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
42,428
|
|
(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
assets
|
|
1,465
|
|
(998)
|
|
3,636
|
|
1,243
|
|
Accounts
payable
|
|
(22,994)
|
|
32,371
|
|
8,576
|
|
57,268
|
|
Accrued expenses and
other liabilities
|
|
10,147
|
|
(24,153)
|
|
(5,709)
|
|
(68,242)
|
|
Deferred
revenue
|
|
(1,382)
|
|
58,998
|
|
27,284
|
|
98,037
|
|
Net cash provided by
operating activities
|
|
228,681
|
|
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 securities
|
|
624,402
|
|
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 options
|
|
1,257
|
|
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 activities
|
|
1,233
|
|
9,870
|
|
27,659
|
|
37,390
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
3,098
|
|
(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 period
|
|
410,963
|
|
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,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Reconciliation of
gross profit and gross margin
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
552,260
|
|
$
444,217
|
|
$
1,575,195
|
|
$
1,233,631
|
|
Plus: Stock-based
compensation expense
|
|
6,249
|
|
4,570
|
|
18,169
|
|
12,452
|
|
Plus: Amortization of
acquired intangibles
|
|
1,230
|
|
1,974
|
|
4,538
|
|
6,054
|
|
Plus: Employer payroll
taxes on employee stock transactions
|
|
118
|
|
107
|
|
378
|
|
276
|
|
Non-GAAP gross
profit
|
|
$
559,857
|
|
$
450,868
|
|
$
1,598,280
|
|
$
1,252,413
|
|
GAAP gross
margin
|
|
80 %
|
|
81 %
|
|
81 %
|
|
80 %
|
|
Non-GAAP gross
margin
|
|
81 %
|
|
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 expense
|
|
142,190
|
|
123,114
|
|
411,875
|
|
354,179
|
|
Plus: Amortization of
acquired intangibles
|
|
1,438
|
|
2,182
|
|
5,156
|
|
6,671
|
|
Plus: Employer payroll
taxes on employee stock transactions
|
|
9,115
|
|
9,689
|
|
33,122
|
|
23,947
|
|
Non-GAAP operating
income
|
|
$
173,021
|
|
$
130,755
|
|
$
495,045
|
|
$
323,591
|
|
GAAP operating
margin
|
|
3 %
|
|
(1) %
|
|
2 %
|
|
(4) %
|
|
Non-GAAP operating
margin
|
|
25 %
|
|
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,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Reconciliation of
net income (loss)
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
51,697
|
|
$
22,630
|
|
$
138,152
|
|
$
(5,425)
|
|
Plus: Stock-based
compensation expense
|
|
142,190
|
|
123,114
|
|
411,875
|
|
354,179
|
|
Plus: Amortization of
acquired intangibles
|
|
1,438
|
|
2,182
|
|
5,156
|
|
6,671
|
|
Plus: Employer payroll
taxes on employee stock transactions
|
|
9,115
|
|
9,689
|
|
33,122
|
|
23,947
|
|
Plus: Amortization of
issuance costs
|
|
912
|
|
848
|
|
2,672
|
|
2,539
|
|
Non-GAAP net income
before non-GAAP tax adjustments
|
|
$
205,352
|
|
$
158,463
|
|
$
590,977
|
|
$
381,911
|
|
Income tax effects and
adjustments (1)
|
|
39,617
|
|
31,958
|
|
114,655
|
|
73,571
|
|
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:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
337,562
|
|
325,557
|
|
334,779
|
|
322,395
|
|
Diluted
|
|
357,635
|
|
351,309
|
|
357,331
|
|
348,846
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
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
margin
|
|
30 %
|
|
25 %
|
|
27 %
|
|
26 %
|
Contact Information
Yuka
Broderick
Datadog Investor Relations
IR@datadoghq.com
Dan Haggerty
Datadog Public Relations
Press@datadoghq.com
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SOURCE Datadog, Inc.