Datadog, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with total revenue reaching $2.68 billion, a 26% increase from $2.13 billion in 2023. The company achieved a net income of $183.7 million, compared to a profit of $48.6 million in the previous year, marking a notable turnaround from a net loss of $50.2 million in 2022. This improvement in profitability was attributed to a combination of increased revenue from existing customers and new customer acquisitions, with approximately 75% of the revenue growth stemming from existing clients.
The company’s operational metrics also reflected positive trends, with a customer base expanding to approximately 30,000 as of December 31, 2024, up from about 27,300 the previous year. Datadog's dollar-based net retention rate remained strong, reported in the high 110% range, indicating that existing customers are increasing their spending on the platform. The company also noted that around 50% of its customers were utilizing more than four products, showcasing the effectiveness of its land-and-expand business model.
Strategically, Datadog has continued to innovate and expand its product offerings, launching new features such as Event Management and LLM Observability in 2024. The company has also made significant investments in research and development, with expenses in this area rising to $1.15 billion, representing 43% of total revenue. This focus on innovation is critical as Datadog aims to maintain its competitive edge in the rapidly evolving observability and security market.
Geographically, Datadog's revenue from international markets accounted for approximately 30% of total revenue, indicating a solid presence outside North America. The company plans to further enhance its international footprint, particularly in the EMEA and APAC regions, as part of its growth strategy. As of December 31, 2024, Datadog employed around 6,500 individuals across 33 countries, with a significant portion of its workforce based outside the United States.
Looking ahead, Datadog expressed optimism about its growth trajectory, although it acknowledged potential risks associated with macroeconomic conditions that could impact IT spending. The company emphasized its commitment to expanding its customer base and product adoption while continuing to invest in technology and infrastructure to support its growth objectives.
About Datadog, Inc.
Datadog, Inc. is a leading observability and security platform for cloud applications, offering integrated solutions for infrastructure monitoring, application performance, log management, and security. With a focus on enabling digital transformation, Datadog targets a $81 billion IT Operations Management market. The company emphasizes collaboration among development and operations teams, continuously innovating with new products like Application Vulnerability Management and Workflow Automation to enhance user experience and operational efficiency.
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