2024-07-09 03:43:02 ET
Summary
- Datadog delivered a beat and raise quarter, which did impress me, although the market was expecting a larger raise.
- The company is seeing a growing platform adoption with an increase in customers using multiple products.
- Datadog is winning new deals and expanding with existing customers, demonstrating the strength of the land-and-expand model.
- Next-generation AI customers now constitute 3.5% of total ARR.
- In terms of the optimization that Datadog is seeing, the company is seeing the optimization activity reduce in intensity, although some customers continue to be cost-conscious.
Datadog ( DDOG ) continues to impress me with the first quarter earnings results.
While the stock has retreated since its recent highs, I think that Datadog is starting to look interesting as a beneficiary to an accelerated migration to the cloud as a result of growing adoption of AI.
I have written extensively about Datadog on Seeking Alpha, which can be found here , and continue to be optimistic and confident in the company's future prospects.
For those who are new to the company, Datadog is a monitoring service for cloud-based infrastructure and applications, providing visibility into servers, apps, tools, and services through its platform, which offers dashboarding, visualization, and alerting....
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Datadog: Patience Is Required