Datadog Q2 revenue beats on large customer growth, AI adoption
Datadog Q2 revenue beats on large customer growth, AI adoption
Overview
US observability platform's Q2 revenue rose 36% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat consensus
Company saw strong growth in $100k+ ARR customers and launched new AI-powered products
Outlook
Datadog sees Q3 revenue between $1.135 bln and $1.145 bln
Company expects Q3 non-GAAP net income per share between $0.63 and $0.65
Datadog forecasts full-year 2026 revenue between $4.45 bln and $4.47 bln
Result Drivers
LARGER CUSTOMER GROWTH - Co said robust growth in $100k+ ARR customers contributed to Q2 results
AI DEPLOYMENT - Co said customers are building and deploying with AI, using Datadog to observe, secure, and act on AI-enabled solutions, per CEO Olivier Pomel
PRODUCT INNOVATION - Co launched more than 100 new capabilities, including fully autonomous Bits AI and AI Guard, to help customers manage AI and security complexity
Company press release: ID:nGNX4kFYJ8
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.12 bln | $1.08 bln (41 Analysts) |
Q2 Adjusted EPS | Beat | $0.65 | $0.59 (40 Analysts) |
Q2 EPS |
| $0.12 |
|
Q2 Net Income |
| $44.56 mln |
|
Q2 Adjusted Operating Income | Beat | $257 mln | $233.01 mln (38 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 46 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Datadog Inc is $284.50, about 0.5% above its August 5 closing price of $283.17
The stock recently traded at 104 times the next 12-month earnings vs. a P/E of 57 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)