A good overview of the Datadog business model and what makes them special.
Most of the content has been discussed on this board (revenue growth, DBNRR, ARR and gross margin)
My takeaways from the podcast beyond the above:
- the pace of new products is at a pace that competitors have not been able to keep up with.
- Because of the land and expand model, the new products are immediately making a significant contribution to the overall revenue
- the decrease in S&M expenses over the last two years due to the developer community they have developed that has enabled them to spend funds on R&D
The below two specifically stood out
- Their approach to M&A: they buy a company and stop selling their acquired company’s product when they have fully integrated the product into their ecosystem. Having been part of a company that made many acquisitions (where the acquired products were sold immediately to existing customers without fully integrating them) - this takes real commitment from the leadership because the ROI is delayed but it’s the right way because customers trust the product more over time.
- Their long term roadmap includes expanding observability (their end to end monitoring ) beyond the tech stack into non tech users