Saul, why are you so confident in DDOG?
Hi Bear,
Well they grew revenue at 85% last quarter. Their gross margins rose 300 basis points from 75% to 78%. Their adjusted operating income was positive $7.0 million, giving them an adjusted operating margin of positive 6%, improved from negative 7% the year before. Their adjusted net margin was positive 9% up from negative 7%. Their operating cash flow was $17 million, and free cash flow was $11 million. Their customers over $100,000 were at 858, up 89% from 453 a year-ago. Customers over $1 million were at 50, up 72% from 29 a year-ago. They added about 1,000 new customers in Q4, which was a record and almost twice the number they added a year ago. About 60% of their customers are now using two or more of their products, up from 25% a year ago. Their net retention rate continues over 130%. Calculated billings were up 77%. Their average ARR of their enterprise customers was about $230,000, up from $160,000 a year ago. And average ARR of our mid-market customers was about $170,000, up from $110,000… … ETC.
I’d guess that there have been very few companies that have EVER had a quarter like that at a run rate approaching half a billion dollars. And they were cash flow positive and profitable too!
They finished by saying, We believe we are at the very early stages of a multi-billion dollar market opportunity and we feel very good about our ability to build a large and successful company.
And if you put all that together, that’s why I have confidence in Datadog.
Best,
Saul