Datadog reported strong revenue growth driven by an increase in large customers and new product launches. The company demonstrated robust operating cash flow and free cash flow, alongside continued investment in innovation and product development.
Fourth quarter revenue grew 29% year-over-year to $953 million.
positiveFiscal year 2025 revenue increased 28% year-over-year to $3.43 billion.
positiveNumber of customers with ARR of $1 million or more increased 31% to 603.
positiveOperating cash flow for FY2025 was $1,050 million, and free cash flow was $915 million.
positiveLaunched new products including Bits AI SRE Agent, Storage Management, Feature Flags, and Data Observability.
positiveGAAP operating margin for Q4 FY2025 was 1%, down from 2% in the prior year quarter.
attentionGAAP operating margin for FY2025 was -1%, a decrease from 2% in FY2024.
negativeNon-GAAP operating margin for Q4 FY2025 was 24%, down from 24% in the prior year quarter, indicating flat performance.
attentionNon-GAAP operating margin for FY2025 was 22%, down from 25% in FY2024.
attentionQ1 2026 revenue guidance is between $951 million and $961 million, representing a slight sequential decrease from Q4 2025 revenue of $953 million.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| revenue | 951 to $961 million | Q1 2026 | — | — |
| non-GAAP operating income | 195 to $25 million | Q1 2026 | — | — |
| non-GAAP net income per share | 49 to 51 cents | Q1 2026 | — | — |
| revenue | 4.06 to 4.10 billion | FY2026 | — | — |
| non-GAAP operating income | 840 to $880 million | FY2026 | — | — |
| non-GAAP net income per share | $2.08 to $2.16 | FY2026 | — | — |
Pleased with strong execution in fiscal year 2025, with 28% year-over-year revenue growth, $1,050 million in operating cash flow, and $915 million in free cash flow.
Delivered over 400 new features and capabilities in 2025 to help customers migrate to the cloud and deploy next-gen AI.
Excited about plans for 2026 to deliver more AI-powered innovation and help customers with complex challenges.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.