Datadog, Inc.

Datadog, Inc.

DDOGInfrastructure

Datadog is a monitoring and analytics platform that provides unified observability across infrastructure, applications, logs, security, and user experience.

Key figures

Data as of Jun 2026 · Pills compare vs Mar 2026
ARR Multiple
22.7x
+1.8x
ARR
$4.5B
+11.4%
YoY Growth
35.6%
+3.5pp
Market Cap
$101.7B
+8.8%
Revenue (Q)
$1.1B
+11.4%
Gross Margin
78.6%
-0.6pp
Op. Margin
0.5%
-0.2pp
Rule of 40
36.1
+2.2
Magic Number
1.64
+0.83

Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data. Market cap & ARR multiple use the close of 13 Oct 2026; their pills compare vs the Jun 2026 quarter-end (20.8x).

Valuation by quarter

Current ARR Multiple: 20.8x

Calculated valuation

FRAMEWORK EST.
Valuation data is not available for this company.

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AI Replacement RiskMODERATE
26/ 100
LowModerateElevatedHigh

Estimated likelihood that general-purpose AI replaces this product.

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Why this rating

From the AI Risk Calculator model

Structural moats (regulation, integration depth, or proprietary data) make AI-only replacement unlikely in the near term.

What's driving the score
Data analyticsCategory baseline
mid base
Workflow complexity5/5
-12 risk
Data moat3/5
-1 risk
Integration depthHigh
-10 risk
SegmentEnterprise
-8 risk
IndustryOther
neutral
Own AI integration2/5
+1.6 risk

Company overview

Datadog is a monitoring and analytics platform that provides unified observability across infrastructure, applications, logs, security, and user experience. Olivier Pomel and Alexis Le-Quoc founded it in 2010 in New York City. They built it to solve the monitoring challenges that come with cloud-native, microservices-based architectures where traditional tools couldn't keep up.

The platform pulls everything together: infrastructure monitoring, application performance monitoring, distributed tracing, log management, real-user monitoring, synthetic monitoring, database monitoring, network monitoring, cloud cost management, and CI/CD visibility. All in one interface. This unified approach kills tool sprawl and lets engineering teams correlate metrics, traces, and logs in a single view. That dramatically reduces the time it takes to find and fix problems.

The Cloud Security Platform extends into security territory with posture management, workload security, application security, and SIEM capabilities. This convergence of observability and security, often called DevSecOps, positions Datadog to capture enterprise security budgets alongside its observability revenue.

Datadog primarily serves engineering, DevOps, and SRE teams running cloud-native infrastructure. It integrates with over 750 technologies including AWS, Azure, Google Cloud, Kubernetes, and Docker. The go-to-market mixes product-led growth, where developers adopt products and expand organically, with direct enterprise sales for bigger accounts.

Revenue is subscription-based, priced on usage like host count and log volume. Annual revenue runs about $4.0 billion with gross margins around 80%. Net revenue retention exceeds 115%. Over 83% of customers use two or more products, and over 49% use four or more. That's strong platform adoption.

Bits AI is the natural language assistant. It helps engineers investigate incidents, write queries, and generate dashboards through conversation. LLM Observability lets AI teams monitor their own model deployments, putting Datadog right at the intersection of AI infrastructure monitoring.

Acquisitions include Sqreen for application security, Hdiv Security for runtime protection, and Cloudcraft for cloud architecture visualization. With about 6,000 employees and a reputation for shipping products fast, Datadog has become the leading unified observability and security platform for cloud-native organizations.

Entity information

Industry7372: Services-Prepackaged Software
Fiscal YearDec 31
IncorporatedNevada
Phone(866) 329-4466
Address620 EIGHTH AVENUE, 45TH FLOOR, NEW YORK, NY, 10018
Mailing address620 EIGHTH AVENUE, 45TH FLOOR, NEW YORK, NY, 10018
EIN27-2825503
Entity typeoperating
SEC industry framework06 Technology

SaaS KPIs

Reported in at least 3 quarters

Total Customers

26 quarters
~33.4K
Q2 FY2026+0.6%

Free Cash Flow

23 quarters
$279.0M
Q2 FY2026-3.5%

Non-GAAP Operating Margin

22 quarters
23%
Q2 FY2026+1.0pp

Free Cash Flow Margin

17 quarters
25%
Q2 FY2026-4.0pp

Customers Using More Than One Product

16 quarters
~83%
Q1 FY2025+0.0pp

Customers with ARR of $100,000 or more

16 quarters
~4,720
Q2 FY2026+9.5%

Management outlook

Given with Q2 FY2026 results (Jun 2026)
ReportedGuidanceFY2025 (cumulative)

Guided revenue, FY2026$4.45B – $4.47B
Midpoint$4.46B
Growth vs FY2025+30.1%
Reported, Q1–Q2$2.128B
Implied Q3–Q4$2.322B – $2.342B
Third Quarter 2026
Non-GAAP operating income$260 million - $270 million
Non-GAAP net income per share$0.63 - $0.65
Full Year 2026
Non-GAAP operating income$1.01 billion - $1.03 billion
Non-GAAP net income per share$2.50 - $2.54

Quarterly financials

Left axis in $ (Revenue, Gross profit, Net income, S&M); right axis for ratios (Rule of 40, Magic number). Click a legend item to toggle it.

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