Datadog reports solid growth in the third quarter of 2024 and expands its product range

Datadog celebrates a successful third quarter of 2024 with an impressive revenue of 690 million USD, reflecting a 26% increase compared to the previous year. The company also saw its customer base grow to approximately 29,200, up from 26,800 the previous year. Particularly noteworthy is the proportion of revenue from major clients, which accounted for 88% of annual recurring revenue. As part of its platform strategy expansion, 83% of customers now use two or more products, with 12% using eight or more products. Datadog continues to observe stable growth conditions in the areas of digital transformations and cloud migrations. There is especially robust development in infrastructure monitoring, APM suite, and log management. Furthermore, the increasing use of AI integrations is notable, with around 3,000 customers utilizing data for AI and machine learning. The company’s goal to better leverage market opportunities in cloud services is supported by the introduction of innovative products, including NSA monitoring (Network, Security, Application Monitoring). Additionally, Datadog Monitoring for Oracle Cloud Infrastructure has been introduced. Equally promising are new customer agreements, including a significant partnership with a major Indian e-commerce company and a large U.S. financial services provider, both of which rely on Datadog's powerful monitoring solutions. Datadog's financial strategy remains focused on growth investments, particularly in sales and marketing. With a free cash flow of 204 million USD and stable gross margins, the company appears well positioned to benefit from long-term trends.