Datadog Inc (DDOG, Financial), the monitoring and security platform for cloud applications, announced its financial results for the third quarter ended September 30, 2023, on November 7, 2023. The company reported a 25% year-over-year revenue growth, reaching $548 million. This growth was driven by robust new logo bookings and a strong increase in larger customers, with about 3,130 $100k+ ARR customers, up from about 2,600 a year ago.
Financial Highlights
The company's GAAP operating loss was $(4.2) million, with a GAAP operating margin of (1)%. On the other hand, non-GAAP operating income was $130.8 million, with a non-GAAP operating margin of 24%. The GAAP net income per diluted share was $0.06, while the non-GAAP net income per diluted share was $0.45. Operating cash flow was $152.8 million, with free cash flow of $138.2 million. As of September 30, 2023, the company's cash, cash equivalents, and marketable securities were $2.3 billion.
Business Highlights
As of September 30, 2023, Datadog Inc (DDOG, Financial) had about 3,130 customers with ARR of $100,000 or more, an increase of 20% from about 2,600 as of September 30, 2022. The company also released its fifth annual container report, which found that serverless containers continue to rise in popularity. The report showed that 46% of container organizations now run serverless containers, up from 31% two years ago.
Outlook for Q4 and Full Year 2023
Based on the information available as of November 7, 2023, Datadog Inc (DDOG, Financial) provided the following guidance: For the fourth quarter of 2023, the company expects revenue between $564 million and $568 million, non-GAAP operating income between $129 million and $133 million, and non-GAAP net income per share between $0.42 and $0.44. For the full year 2023, the company anticipates revenue between $2.103 billion and $2.107 billion, non-GAAP operating income between $453 million and $457 million, and non-GAAP net income per share between $1.52 and $1.54.
Explore the complete 8-K earnings release (here) from Datadog Inc for further details.
