- Datadog, Inc (NASDAQ:DDOG) reported first-quarter FY22 revenue growth of 83% year-on-year to $363 million, beating the consensus of $337.8 million.
- As of March 31, Datadog had 2,250 customers with an ARR of $100,000 or more, increasing 60% Y/Y.
- The non-GAAP gross margin expanded 300 bps to 80%. The non-GAAP operating margin expanded by 1,300 bps to 23%.
- Non-GAAP EPS of $0.24 beat the consensus of $0.11.
- Datadog held cash and equivalents of $1.7 billion and generated $147.4 million in operating cash flow and $129.9 million in free cash flow.
- CEO Olivier Pomel said, "We continue to see customers of all sizes and in all industries progressing along their digital transformation and cloud migration journeys."
- Outlook: Datadog sees Q2 FY22 revenue of $376 million - $380 million, above the consensus of $361.6 million. It sees non-GAAP EPS of $0.13 - $0.15 above the consensus of $0.12.
- Datadog raised FY22 revenue outlook from $1.51 billion - $1.53 billion to $1.60 billion - $1.62 billion above the consensus of $1.53 billion. It increased non-GAAP EPS guidance from $0.45 - $0.51 to $0.70 - $0.77, above the consensus of $0.52.
- Acquisition: Datadog agreed to acquire Hdiv Security, a leading security-testing software provider, for undisclosed terms.
- "Combining security and observability provides Datadog customers unique insights into sensitive services that are vulnerable or under attack," said Pierre Betouin, VP of Product, Cloud Security Platform at Datadog.
- DDOG shares are trading lower with the broader market, which is down due to a 50 bps Fed rate hike.
- Price Action: DDOG shares traded lower by 7.98% at $109.41 on the last check Thursday.
