Datadog, Inc - Monitoring and Analytics Platform for Developers and IT Operations Teams.
DDOG - Reported Q1 2022 on May 5:
Current Data Points:
Range: 78.51 - 199.68
About 45% Below its High
Market Cap: $34.3B (give or take)
YTD Momentum: -33%
- First quarter revenue grew 83% year-over-year to $363 million: ATTA BOY!
Note: Revenue Beat was a health +7.5%.
EPS Normalized Actual $0.24 (Beat by $0.13): ATTA BOY!
Strong growth of larger customers, with about 2,250 $100k+ ARR customers, up from 1,406 a year ago: ATTA BOY!
We had about 19,800 customers, up from about 15,200 in the year ago quarter. We ended the quarter with about 2,250 customers with ARR of $100,000 or more, up from 1,406 in the year ago quarter. These customers generated about 85% of our ARR: ATTA BOY!
We are seeing strong efficiencies in our business model with free cash flow of $130 million and free cash flow margin of 36%: ATTA BOY!
And our dollar-based net retention rate continued to be over 130%: ATTA BOY!
As of the end of Q1, 81% of customers were using 2 or more products, up from 75% a year ago. 35% of customers were using 4 or more products, up from 25% a year ago. And 12% of our customers were using 6 or more products, up from 4% last year: ATTA BOY!
Billings were $444 million – $445 million, up 103% year-over-year: ATTA BOY!
Remaining performance obligations, or RPO, was $858 million, up 85% year-over-year, and contract duration was similar to the year ago quarter: ATTA BOY!
Gross profit in the quarter was $292 million, representing a gross margin of 80%. This compares to a gross margin of 80% in the last quarter and 77% in the year ago quarter: ATTA BOY!
Operating income was $84 million or a 23% operating margin compared to operating income of $20 million or a 10% margin in the year ago quarter: ATTA BOY!
After taking into consideration capital expenditures and capitalized software, free cash flow was $130 million with a free cash flow margin of 36%: ATTA BOY!
Guidance: ATTA BOY!
With the usual conservatism applied, our outlook is as follows: For the second quarter, we expect revenue to be in the range of $376 million to $380 million, which represents 62% growth year-over-year at the midpoint. Non-GAAP operating income is expected to be in the range of $49 million to $53 million, and non-GAAP net income per share is expected to be in the range of $0.13 to $0.15 per share on an approximately 347 million weighted average diluted shares outstanding.
For the full fiscal year 2022, we expect revenue to be in the range of $1.6 billion to $1.62 billion, which represents 56% year-over-year growth at the midpoint. Non-GAAP operating income is expected to be in the range of $240 million to $260 million and non-GAAP net income per share is expected to be in the range of $0.70 to $0.77 per share on an approximate 349 million weighted average diluted shares.
Now some notes on our guidance. First, when providing guidance, as usual, we use more conservative assumptions than historical performance.
Note on Guidance: Translation of guidance weasel words: Given our usual BEAT performance on Revenue Growth we are going to cream those numbers.
Market Reaction to Report: Stock sold off from the $111 range to the $87 range but only due to the Bear - Rallied some on Friday but still below report date price: OH POOP!
DDOG ER SCORE: ATTA BOYS 13/OH POOPS 1
LIST and RANKINGS Assignment: NICE #2
All the Best,