Datadog Q2 Earnings Call Highlights

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Datadog (NASDAQ:DDOG) reported second-quarter gross of $1.12 billion, up 36% from a twelvemonth earlier and supra the precocious extremity of its guidance range, arsenic maturation accelerated crossed some AI-focused and non-AI customers.

Co-founder and Chief Executive Officer Olivier Pomel said gross maturation among non-AI customers reached the precocious 20% scope twelvemonth implicit year, compared with the mid-20% scope successful the anterior 4th and 18% successful the year-ago period. He said the institution sees broader adoption of AI driving unreality usage, modernization efforts and request for its observability, information and analytics platform.

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"Our wide basal of customers, from the astir nimble startups to the largest and astir established enterprises, are each adopting AI," Pomel said.

Customer Growth and Financial Results

Datadog ended the 4th with astir 33,400 customers, compared with astir 31,400 a twelvemonth earlier. Customers with yearly recurring gross of astatine slightest $100,000 totaled astir 4,720, up from astir 3,850 a twelvemonth ago, and accounted for astir 91% of ARR.

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The institution reported $1.18 cardinal successful billings, up 38% twelvemonth implicit year, portion remaining show obligations roseate 43% to $3.47 billion. Current RPO accrued astir 40%.

Non-GAAP gross nett was $892 million, representing a 79.6% gross margin, compared with 80.2% successful the preceding 4th and 80.9% a twelvemonth earlier. Non-GAAP operating income was $257 million, oregon a 23% margin, versus a 22% borderline successful the anterior 4th and 20% a twelvemonth ago.