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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 13, 2025

Datadog, Inc.
(Exact name of Registrant as Specified in Its Charter)
Delaware 001-39051 27-2825503
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
620 8th Avenue,
45th Floor 
New York,NY10018
(Address of Principal Executive Offices) (Zip Code)
(866) 329-4466
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Class A Common Stock, par value $0.00001 per shareDDOGThe Nasdaq Stock Market LLC
(Nasdaq Global Select Market)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐




Item 2.02 Results of Operations and Financial Condition.
On February 13, 2025 Datadog, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information contained in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits

Exhibit No.Description
99.1
Press Release dated February 13, 2025
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Datadog, Inc.
Date: February 13, 2025
By:/s/ David Obstler
David Obstler
Chief Financial Officer


Exhibit 99.1

Datadog Announces Fourth Quarter and Fiscal Year 2024 Financial Results

February 13, 2025

Fourth quarter revenue grew 25% year-over-year to $738 million
Strong growth of larger customers, with 462 $1 million+ ARR customers, up from 396 a year ago
Launched On-Call for general availability


NEW YORK-- Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its fourth quarter and fiscal year ended December 31, 2024.
"We are pleased with our strong execution in fiscal year 2024, with 26% year-over-year revenue growth, $871 million in operating cash flow, and $775 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog. "During 2024, we delivered hundreds of new features and capabilities to help our customers as they migrate to the cloud and adopt new technologies like next-gen AI."
Pomel added, “Looking forward to 2025, we are excited about our plans to deliver more innovation and help our customers with their complex challenges in modern Observability, Cloud Security, Software Delivery, Cloud Service Management, and Product Analytics."
Fourth Quarter 2024 Financial Highlights:
•Revenue was $738 million, an increase of 25% year-over-year.
•GAAP operating income was $9 million; GAAP operating margin was 1%.
•Non-GAAP operating income was $179 million; non-GAAP operating margin was 24%.
•GAAP net income per diluted share was $0.13; non-GAAP net income per diluted share was $0.49.
•Operating cash flow was $265 million, with free cash flow of $241 million.
•Cash, cash equivalents and marketable securities were $4.2 billion as of December 31, 2024.
Fiscal Year 2024 Financial Highlights:
•Revenue was $2.68 billion, an increase of 26% year-over-year.
•GAAP operating income was $54 million; GAAP operating margin was 2%.



•Non-GAAP operating income was $674 million; non-GAAP operating margin was 25%.
•GAAP net income per diluted share was $0.52; non-GAAP net income per diluted share was $1.82.
•Operating cash flow was $871 million, with free cash flow of $775 million.
Fourth Quarter & Recent Business Highlights:
•As of December 31, 2024, we had 462 customers with ARR of $1 million or more, an increase of 17% from 396 as of December 31, 2023. As of December 31, 2024, we had about 3,610 customers with ARR of $100,000 or more, an increase of 13% from 3,190 as of December 31, 2023.
•Issued $1 billion aggregate principal amount of 0% Convertible Senior Notes due 2029 in a private placement. The notes will be general unsecured obligations of Datadog and will not bear regular interest and the principal amount of the notes will not accrete. The notes will mature on December 1, 2029, unless earlier converted, redeemed or repurchased.
•Announced a new modern approach to Cloud SIEM, which doesn't require dedicated staff or specialized teams to activate the solution. This approach makes it easy for teams to onboard, de-risk migrations and democratize security practices while disrupting traditional models, which can be costly and resource intensive.
•Expanded its Database Monitoring product to observe MongoDB databases. Datadog Database Monitoring supports the five most popular database types—MongoDB, Postgres, MySQL, SQL Server and Oracle.
•At AWS re:Invent, highlighted Datadog's continued investment in its Amazon Web Services (AWS) monitoring product portfolio, which covers all aspects of a customers' tech stack, including AI/ML applications as well as serverless and containerized environments.
•Announced the launch of Kubernetes Active Remediation, which builds on Datadog's automated troubleshooting capabilities to provide curated remediation guidance, best practices and end-to-end issue management for Kubernetes organizations.

First Quarter and Fiscal Year 2025 Outlook:
Based on information as of today, February 13, 2025, Datadog is providing the following guidance:
•First Quarter 2025 Outlook:
◦Revenue between $737 million and $741 million.
◦Non-GAAP operating income between $162 million and $166 million.



◦Non-GAAP net income per share between $0.41 and $0.43, assuming approximately 366 million weighted average diluted shares outstanding.
•Fiscal Year 2025 Outlook:
◦Revenue between $3.175 billion and $3.195 billion.
◦Non-GAAP operating income between $655 million and $675 million.
◦Non-GAAP net income per share between $1.65 and $1.70, assuming approximately 369 million weighted average diluted shares outstanding.
The dilutive effect of our 0.125% Convertible Senior Notes due 2025 and our 0% Convertible Senior Notes due 2029 using the if-converted method is reflected in our guidance for weighted average diluted shares outstanding for the first quarter 2025 and each of the four quarters for the fiscal year 2025. However, upon conversion or maturity of such convertible notes, we may choose to satisfy our obligations using cash, shares of our common stock or a combination of both.
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 fourth quarter and fiscal year 2024 and outlook for the first quarter and the fiscal year 2025
•When: February 13, 2025 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 first quarter and fiscal year 2025 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on November 8, 2024. Additional information will be made available in our Annual Report on Form 10-K for the year ended December 31, 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 and December 2024, Datadog issued $747.5 million of 0.125% convertible senior notes due 2025 and $1.0 billion of 0% convertible senior notes due 2029, respectively. 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 and number of customers with ARR of $1 million or more are 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
December 31,		Year Ended
December 31,
2024202320242023
Revenue$737,727 589,649 $2,684,275 $2,128,359 
Cost of revenue (1)(2)(3)
144,178 104,829 515,531 409,908 
Gross profit593,549 484,820 2,168,744 1,718,451 
Operating expenses:
Research and development (1)(3)
316,314 253,250 1,152,703 962,447 
Sales and marketing (1)(2)(3)
207,947 159,980 756,605 609,276 
General and administrative (1)(3)
59,896 43,848 205,152 180,192 
Total operating expenses584,157 457,078 2,114,460 1,751,915 
Operating income (loss)9,392 27,742 54,284 (33,464)
Other income:
Interest expense (4)
(2,643)(1,292)(7,068)(6,302)
Interest income and other income, net47,077 30,817 156,724 100,001 
Other income, net44,434 29,525 149,656 93,699 
Income before provision for income taxes53,826 57,267 203,940 60,235 
Provision for income taxes8,232 3,274 20,194 11,667 
Net income$45,594 53,993 $183,746 $48,568 
Net income per share - basic$0.13 $0.16 $0.55 $0.15 
Net income per share - diluted$0.13 $0.15 $0.52 $0.14 
Weighted average shares used in calculating net income per share:
Basic340,320 328,895 336,172 324,033 
Diluted360,940 352,907 358,636 350,292 
(1) Includes stock-based compensation expense as follows:
Cost of revenue$8,052 $5,126 $26,221 $17,578 
Research and development97,276 83,489 363,301 313,096 
Sales and marketing33,598 26,880 122,079 101,937 
General and administrative19,535 12,626 58,735 49,689 
Total$158,461 $128,121 $570,336 $482,300 
(2) Includes amortization of acquired intangibles as follows:
Cost of revenue$1,104 $1,987 $5,642 $8,041 
Sales and marketing207208825825
Total$1,311 $2,195 $6,467 $8,866 
(3) Includes employer payroll taxes on employee stock transactions as follows:
Cost of revenue$68 $88 $446 $364 
Research and development7,410 6,236 31,134 21,449 
Sales and marketing873 909 4,694 5,917 
General and administrative1,653 1,361 6,852 4,811 
Total$10,004 $8,594 $43,126 $32,541 
(4) Includes amortization of issuance costs as follows:
Interest expense$1,089 $849 $3,761 $3,388 
Total$1,089 $849 $3,761 $3,388 




Datadog, Inc.
Condensed Consolidated Balance Sheets
(In thousands; unaudited)

December 31,
2024		December 31,
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$1,246,983 $330,339 
Marketable securities2,942,076 2,252,559 
Accounts receivable, net of allowance for credit losses of $16,302 and $12,096 as of December 31, 2024 and 2023, respectively
598,919 509,279 
Deferred contract costs, current56,095 44,938 
Prepaid expenses and other current assets67,042 41,022 
Total current assets4,911,115 3,178,137 
Property and equipment, net226,970 171,872 
Operating lease assets172,512 126,562 
Goodwill360,381 352,694 
Intangible assets, net3,711 9,617 
Deferred contract costs, non-current86,573 73,728 
Other assets24,077 23,462 
TOTAL ASSETS$5,785,339 $3,936,072 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable$107,731 $87,712 
Accrued expenses and other current liabilities127,136 127,631 
Operating lease liabilities, current31,970 21,974 
Convertible senior notes, net, current634,023 — 
Deferred revenue, current961,853 765,735 
Total current liabilities1,862,713 1,003,052 
Operating lease liabilities, non-current196,905 138,128 
Convertible senior notes, net, non-current979,282 742,235 
Deferred revenue, non-current22,693 21,210 
Other liabilities9,383 6,093 
Total liabilities3,070,976 1,910,718 
STOCKHOLDERS' EQUITY:
Common stock3 3 
Additional paid-in capital2,689,013 2,181,267 
Accumulated other comprehensive loss(4,701)(2,218)
Retained earnings (accumulated deficit)30,048 (153,698)
Total stockholders’ equity2,714,363 2,025,354 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$5,785,339 $3,936,072 












Datadog, Inc.
Condensed Consolidated Statements of Cash Flow
(In thousands; unaudited)

Three Months Ended
December 31,		Year Ended
December 31,
2024202320242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$45,594 $53,993 $183,746 $48,568 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization15,706 12,031 54,933 44,465 
Accretion of discounts on marketable securities(12,393)(15,365)(51,932)(41,621)
Amortization of issuance costs1,089 849 3,761 3,388 
Net loss on conversion inducement and capped call settlement599 — 599 — 
Amortization of deferred contract costs14,279 10,984 52,047 39,207 
Stock-based compensation, net of amounts capitalized158,461 128,121 570,336 482,300 
Non-cash lease expense7,002 7,050 27,263 26,382 
Allowance for credit losses on accounts receivable4,473 2,836 14,847 11,933 
Loss on disposal of property and equipment1,308 287 1,660 706 
Changes in operating assets and liabilities:
Accounts receivable, net(116,327)(111,467)(104,485)(121,661)
Deferred contract costs(24,725)(26,869)(76,048)(69,481)
Prepaid expenses and other current assets(16,581)(3,194)(26,654)(13,508)
Other assets(4,639)(225)(1,003)1,018 
Accounts payable17,034 505 25,610 57,773 
Accrued expenses and other liabilities4,083 27,753 (1,626)(40,489)
Deferred revenue170,265 132,937 197,549 230,974 
Net cash provided by operating activities265,228 220,226 870,603 659,954 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities(507,309)(546,156)(2,653,242)(2,558,013)
Maturities of marketable securities428,445 396,582 2,018,832 1,864,557 
Proceeds from sale of marketable securities233 602 201 36,995 
Purchases of property and equipment(7,761)(10,395)(34,719)(27,586)
Capitalized software development costs(16,495)(8,541)(60,781)(34,820)
Cash paid for acquisition of businesses; net of cash acquired(6,477)(6,129)(7,131)(12,498)
Net cash used in investing activities(109,364)(174,037)(736,840)(731,365)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options2,243 3,505 7,444 20,909 
Proceeds for issuance of common stock under the employee stock purchase plan21,179 17,384 43,686 37,370 
Proceeds from issuance of 2029 Convertible Senior Notes, net of issuance costs978,881 — 978,881 — 
Proceeds from settlement of capped calls related to 2025 Convertible Senior Notes54,725 — 54,725 — 
Purchase of capped calls related to 2029 Convertible Senior Notes(100,900)— (100,900)— 
Repayments of 2025 Convertible Senior Notes(196,704)— (196,753)— 
Net cash provided by financing activities759,424 20,889 787,083 58,279 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(5,723)1,952 (4,202)1,183 
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH909,565 69,030 916,644 (11,949)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period337,418 261,309 330,339 342,288 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period$1,246,983 $330,339 $1,246,983 $330,339 
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$1,246,983 $330,339 $1,246,983 $330,339 
Total cash and cash equivalents$1,246,983 $330,339 $1,246,983 $330,339 




Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)

Three Months Ended
December 31,		Year Ended
December 31,
2024202320242023
Reconciliation of gross profit and gross margin
GAAP gross profit$593,549$484,820$2,168,744$1,718,451
Plus: Stock-based compensation expense8,0525,12626,22117,578
Plus: Amortization of acquired intangibles1,1041,9875,6428,041
Plus: Employer payroll taxes on employee stock transactions6888446364
Non-GAAP gross profit$602,773$492,021$2,201,053$1,744,434
GAAP gross margin80%82%81%81%
Non-GAAP gross margin82%83%82%82%
Reconciliation of operating expenses
GAAP research and development$316,314$253,250$1,152,703$962,447
Less: Stock-based compensation expense(97,276)(83,489)(363,301)(313,096)
Less: Employer payroll taxes on employee stock transactions(7,410)(6,236)(31,134)(21,449)
Non-GAAP research and development$211,628$163,525$758,268$627,902
GAAP sales and marketing$207,947$159,980$756,605$609,276
Less: Stock-based compensation expense(33,598)(26,880)(122,079)(101,937)
Less: Amortization of acquired intangibles(207)(208)(825)(825)
Less: Employer payroll taxes on employee stock transactions(873)(909)(4,694)(5,917)
Non-GAAP sales and marketing$173,269$131,983$629,007$500,597
GAAP general and administrative$59,896$43,848$205,152$180,192
Less: Stock-based compensation expense(19,535)(12,626)(58,735)(49,689)
Less: Employer payroll taxes on employee stock transactions(1,653)(1,361)(6,852)(4,811)
Non-GAAP general and administrative$38,708$29,861$139,565$125,692
Reconciliation of operating income (loss) and operating margin
GAAP operating income (loss)$9,392$27,742$54,284$(33,464)
Plus: Stock-based compensation expense158,461128,121570,336482,300
Plus: Amortization of acquired intangibles1,3112,1956,4678,866
Plus: Employer payroll taxes on employee stock transactions10,0048,59443,12632,541
Non-GAAP operating income$179,168$166,652$674,213$490,243
GAAP operating margin1%5%2%(2)%
Non-GAAP operating margin24%28%25%23%













Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)

Three Months Ended
December 31,		Year Ended
December 31,
2024202320242023
Reconciliation of net income
GAAP net income$45,594$53,993$183,746$48,568
Plus: Stock-based compensation expense158,461128,121570,336482,300
Plus: Amortization of acquired intangibles1,3112,1956,4678,866
Plus: Employer payroll taxes on employee stock transactions10,0048,59443,12632,541
Plus: Amortization of issuance costs1,0898493,7613,388
Non-GAAP net income before non-GAAP tax adjustments$216,459$193,752$807,436$575,663
Income tax effects and adjustments(1)
38,95338,101153,608111,672
Non-GAAP net income after non-GAAP tax adjustments$177,506$155,651$653,828$463,991
Net income per share before non-GAAP tax adjustments - basic$0.64$0.59$2.40$1.78
Net income per share before non-GAAP tax adjustments - diluted$0.60$0.55$2.25$1.64
Net income per share after non-GAAP tax adjustments - basic$0.52$0.47$1.94$1.43
Net income per share after non-GAAP tax adjustments - diluted$0.49$0.44$1.82$1.32
Shares used in non-GAAP net income per share calculations:
Basic340,320328,895336,172324,033
Diluted360,940352,907358,636350,292
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
December 31,		Year Ended
December 31,
2024202320242023
Net cash provided by operating activities$265,228 $220,226 $870,603 $659,954 
Less: Purchases of property and equipment(7,761)(10,395)(34,719)(27,586)
Less: Capitalized software development costs(16,495)(8,541)(60,781)(34,820)
Free cash flow$240,972 $201,290 $775,103 $597,548 
Free cash flow margin33 %34 %29 %28 %


Contact Information
Yuka Broderick
Datadog Investor Relations
IR@datadoghq.com

Dan Haggerty
Datadog Public Relations
Press@datadoghq.com

Datadog is a registered trademark of Datadog, Inc.
All product and company names herein may be trademarks of their registered owners.

v3.25.0.1
Cover
Feb. 13, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 13, 2025
Entity Registrant Name Datadog, Inc.
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 27-2825503
Entity File Number 001-39051
Entity Address, Postal Zip Code 10018
City Area Code 866
Local Phone Number 329-4466
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, par value $0.00001 per share
Trading Symbol DDOG
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001561550
Amendment Flag false
Entity Address, Address Line One 620 8th Avenue,
Entity Address, Address Line Two 45th Floor
Entity Address, State or Province NY
Entity Address, City or Town New York,
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