I finally got around to listening & reading to the calls from last week (I read the transcript while listening to the call). I posted this on Twitter but wanted to put here too for those not on Twitter (@FinallyFoolin). It’ll be easier when Twitter FINALLY allows long-form tweets!! Definitely way more better that tweet threads.
Finished the $DDOG call this morning. My thoughts. Next Q likely to come in mid to upper 40% YoY range. Lots of talk about no issues with NEW customers and record pipeline but EXPAND is slowed, especially with discretionary companies fully in the cloud (food delivery)
This is sort of the opposite of my thoughts from yesterday that larger UPSELL companies will do better. So now we have evidence of both sides of that ($NET being the opposite). haha.
Further slowing and indicating more slowing. Decent chance of a slightly larger beat next Q as they’re being extra conservative and October has been better (as it usually is).
Its interesting to me that they say this about new customers when the trends are clearly smaller (see graph). Also, stated they see macro events earlier than most and NOT seeing further deterioration out of Q3 than they saw out of Q2.
In discussions of the QoQ and guided QoQ… Olivier stated:
“But in turn, it might give us an easier compare for the future.”
FF Interpretation: Once macro improves, we should expect re-acceleration from current growth rates
“we burned only $30 million from inception to taking the company public. We generated a lot more cash since then”
I LOVE LOVE LOVE this!!
“We train our sales team to land as many new logos and new products as possible. And it’s better for them to do 10 smaller ones than 1 larger one. As those 10 smaller ones will each be as big as the 1 large one in the end.”
Overall, I’m happy with DDOG and they are a lower allocation than they were due to me selling some last month. Might up slightly before too long but DEFINITELY not selling out.