Datadog (DDOG.US) Q4 revenue and profits exceeded expectations, with a 31% increase in million-dollar customers compared to last year.

Cloud monitoring and security platform Datadog (DDOG.US) released its fourth quarter and full-year financial report for 2025, with both revenue and profit exceeding market expectations, and also announced performance outlook for the first quarter and full year of 2026. In the fourth quarter, the company's revenue reached $953 million, a year-on-year increase of 29.1%, exceeding market expectations by $34.8 million. Non-GAAP earnings per share were $0.59, exceeding market expectations by $0.04. In terms of profitability, Non-GAAP operating income was $230 million, with a Non-GAAP operating profit margin of 24%. In terms of cash flow, operating cash flow was $327 million and free cash flow was $291 million. As of December 31, 2025, the total cash and securities amounted to $4.47 billion. The company saw objective customer growth. As of December 31, 2025, the number of customers with annual recurring revenue exceeding $1 million reached 603, a 31% increase from 462 in the same period in 2024. The number of customers with annual recurring revenue exceeding $100,000 was approximately 4,310, a 19% increase from 3,610 in the same period in 2024. Based on information as of February 10, 2026, the company provided performance outlook for the 2026 fiscal year. Revenue for the first quarter of 2026 is expected to be between $951 million and $961 million, with market consensus at $934.08 million. Non-GAAP operating income is expected to be between $195 million and $205 million. Non-GAAP earnings per share are expected to be between $0.49 and $0.51, with market consensus at $0.52. Full year revenue for 2026 is expected to be between $4.06 billion and $4.10 billion, with market consensus at $4.10 billion. Non-GAAP operating income is expected to be between $840 million and $880 million. Non-GAAP earnings per share are expected to be between $2.08 and $2.16, with market consensus at $2.34.