Datadog Q3 revenue, EPS beat expectations on robust growth in larger customers
Overview
Datadog Q3 revenue grows 28% yr/yr to $886 mln, beating analyst expectations
Adjusted EPS for Q3 beats consensus, reflecting strong operational performance
Company reports 16% increase in $100k+ ARR customers, reaching 4,060
Outlook
Datadog projects Q4 2025 revenue between $912 mln and $916 mln
Company expects Q4 2025 non-GAAP net income per share between $0.54 and $0.56
Datadog forecasts full-year 2025 revenue between $3.386 bln and $3.390 bln
Result Drivers
LARGER CUSTOMERS - Datadog saw robust growth in larger customers, with $100k+ ARR customers increasing 16% to 4,060
AI AND SECURITY INNOVATION - Datadog's R&D team rapidly innovated in AI and security, launching new products like AI Observability and Security products, Bits AI Agents, and TOTO model
INTEGRATIONS MILESTONE - Datadog reached over 1,000 integrations on its platform, enhancing its leadership in observability
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $885.65 mln | $852.78 mln (37 Analysts) |
Q3 Adjusted EPS | Beat | $0.55 | $0.47 (38 Analysts) |
Q3 EPS | $0.10 | ||
Q3 Net Income | $33.89 mln | ||
Q3 Adjusted Operating Income | Beat | $207 mln | $179.35 mln (35 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 38 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Datadog Inc is $170.00, about 8.8% above its November 5 closing price of $154.98
The stock recently traded at 72 times the next 12-month earnings vs. a P/E of 71 three months ago
Press Release:
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