“We are very pleased with our first quarter performance, in which we delivered 87% year-over-year revenue growth,” said Olivier Pomel, co-founder and CEO of Datadog . “We continue to deliver innovation to our customers, including the recent launch of our Security Monitoring product, as well as surpassing over 400 supported integrations.”
Pomel added, “In response to the COVID-19 pandemic, we are focused on ensuring the safety of our employees, continuing to best serve our customers, and investing in our platform. This crisis has demonstrated the need to be digital-first and agile, has underscored the importance of observability into cloud environments, and reaffirmed the long-term opportunity for Datadog .”
First Quarter 2020 Financial Highlights:
• Revenue was $131.2 million, an increase of 87% year-over-year.
• GAAP operating income was $3.8 million; GAAP operating margin was 2.9%.
• Non-GAAP operating income was $16.1 million; non-GAAP operating margin was 12.3%.
• GAAP net income per diluted share was $0.02; non-GAAP net income per diluted share was $0.06.
• Operating cash flow was $24.3 million, with free cash flow of $19.3 million.
• Cash, cash equivalents, restricted cash, and marketable securities were $798.5 million as of March 31, 2020.
Second Quarter and Full Year 2020 Outlook:
Based on information as of today, May 11, 2020, Datadog is providing the following guidance for the second quarter and full year 2020:
• Second Quarter 2020 Outlook:
• Revenue between $134 million and $136 million.
• Non-GAAP operating (loss) income between $(1) million and $1 million.
• Non-GAAP net income per share between $0.00 and $0.01, assuming approximately 329 million weighted average diluted shares outstanding.
• Full Year 2020 Outlook:
• Revenue between $555 million and $565 million.
• Non-GAAP operating income between $0 and $10 million.
• Non-GAAP net income per share between $0.02 and $0.06, assuming approximately 330 million weighted average shares outstanding.
Datadog has not reconciled its expectations as to non-GAAP operating (loss) 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.