Slide 1: Investor Presentation
DATADOG Investor Presentation May 2025
Slide 2: Safe harbor
Safe harbor This presentation and the accompanying oral presentation have been prepared by Datadog, Inc. (“Datadog” or the “company”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or repr
Slide 3: Datadog is the observability and security platform for cloud applications
Datadog is the observability and security platform for cloud applications
Slide 4: Evolving technology paradigms create rising complexity
Evolving technology paradigms create rising complexity Diversity of technologies in use Scale in number of computing units Frequency of release Number of people involved 4
Slide 5: Datadog breaks down silos
Datadog breaks down silos Unified platform Deployed everywhere, Breaking used by down silos everyone Simple but not simplistic 5
Slide 6: Datadog solves complexity (integrations)
> = @mongoDB Datadog solves ~ oi an complexity propel o bed oe Fi d k ry Couchbase iOWdOC! rooxout@ Dh 7 OE, A stom = Ca ede MySQL: = pz a: eros “@ x Jenkins lastiesearch i @ moogeD2. ee tS loudTial is S split Sion ORACLE ONewRelic QQ chatwork docker ‘erlak - GO @reutrone a" MarkLogic >sshCoudHeath
Slide 7: Our history of innovation
Our history of innovation One product One platform Product Analytics Used by everyone Eitad Service Deployed everywhere Management Software Delivery Cloud Security Digital Experience Monitoring Founded Datadog to break down silos Log Management Application Performance Monitoring Infrastructure Monit
Slide 8: Enabling rapid innovation
Enabling rapid innovation ae Tracking Kubernetes Security Posture Management Event Management Bits Al for Incident Management Error Tracking for Logs Case Management Composition _ Analysis CSM Agentless Application en Security Data Streams Threat Mgmt. Monitoring Code Security Watchdog Resource Cata
Slide 9: Datadog Platform
Datadog Platform Infrastructure Applications Digital Logs Cloud Security Software Cloud Service Experience Delivery Management Infrastructure Application Synthetics Log Management Cloud Security CI Visibility On-Call Monitoring Performance Management Mobile App Testing Observability Test Optimizatio
Slide 10: Long-term growth drivers are still in early stages
Long-term growth drivers are still in early stages Cloud spend continues to grow rapidly Cloud Spend Cloud Spend as % of Global IT Spend Gartner Forecast: Public Cloud Services, Worldwide - 2010-2016, 4Q12 Update; 2011-2017, 4Q13 Update; 2012-2018, 4Q14 Update; 2013-2019, 4Q15 Update; 2014-2020, 4Q1
Slide 11: Secular tailwind of digital transformation and cloud migration
Secular tailwind of digital transformation and cloud migration Gartner Public Cloud Services Market, 2020-2028E The Cloud market is a ~$600B 20% CAGR market today, growing at a 20% CAGR through 2028 11 Gartner Forecast: Public Cloud Services, Worldwide - 2020-2026, 4Q22 Update; 2021-2027, 4Q23 Updat
Slide 12: Large and growing Observability TAM
Large and growing Observability TAM Gartner IT Operations Market, 2020-2028E 11% CAGR Our Observability market is ~$53B today, growing at a 11% CAGR through 2028 12 Gartner Forecast: Enterprise Infrastructure Software, Worldwide - 2020-2026, 4Q22 Update; 2021-2027, 4Q23 Update; 2022-2028, 4Q24 Updat
Slide 13: Cloud Security TAM opportunity
Cloud Security TAM opportunity Datadog Cloud Security market, 2020-2028E Our Cloud Security market is 16% CAGR ~$26B today, growing at a 16% CAGR through 2028 Gartner Forecast: Information Security and Risk Management, Worldwide - 2020-2026, 4Q22 Update; 2021-2027, 4Q23 Update; 2022-2028, 4Q24 Updat
Slide 14: Datadog named a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms
INDUSTRY RECOGNITION Datadog named a Leader in the 2024 Gartner® Magic Quadrant™ for Observability Platforms This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request
Slide 15: Datadog named a Leader in the 2024 Gartner Magic Quadrant for Digital Experience Monitoring
INDUSTRY RECOGNITION Datadog named a Leader in the 2024 Gartner® Magic Quadrant™ for Digital Experience Monitoring This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon r
Slide 16: Datadog named a Leader in The Forrester Wave: AIOps Platforms, Q2 2025
INDUSTRY RECOGNITION Datadog named a Leader in The Forrester Wave™: AIOps Platforms, Q2 2025 Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the
Slide 17: Datadog scales across ~30,500 global customers
Datadog scales across ~30,500 global customers Customers who are transforming Customers who are born in cloud Trillions of data points per/hr 17
Slide 18: Financial overview
Financial overview
Slide 19: Datadog today
Datadog today (1) FINANCIAL CUSTOMERS 24 PRODUCTS IN AN INTEGRATED DATA PLATFORM Observability Security ● Infra Monitoring ● Network Monitoring ● Cloud Security ● Cloud SIEM $2.83B +26% ~30,500 ● Application Performance ● Database Monitoring Monitoring ● Data Observability Management ● Code Security
Slide 20: Our growth drivers
Our growth drivers 1 Secular tailwind of digital transformation and cloud migration 2 Increased penetration of cloud and next-gen DevOps customers 3 Expanding products / use cases for customers 4 Adding new markets beyond observability 20
Slide 21: Rapid revenue growth
Rapid revenue growth Annual revenue Quarterly revenue $M’s Guided (1) $M’s Guided (1) 3,215-3,235 787-791 40% CAGR (1) Guided revenues are forward-looking statements as of May 6, 2025. See Safe Harbor for important information about these assumptions and forward-looking statements. 21
Slide 22: Strong customer growth
Strong customer growth Total customers 22
Slide 23: Strong customer growth
Strong customer growth # of customers with ARR $1M+ # of customers with ARR $100K+ % of total ARR 78% 83% 85% 86% 88% 87% 88% See our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 for the definition of ARR. 23
Slide 24: Platform strategy is resonating with customers
Platform strategy is resonating with customers % of customers using % of customers using % of customers using % of customers using 2+ products 4+ products 6+ products 8+ products 24
Slide 25: Strong retention and upsell
Strong retention and upsell Mid-high High- 90%s 110%s Dollar-based Dollar-based gross retention rate net retention rate As of March 31, 2025. See Appendix for more information regarding gross retention rate and net retention rate. 25
Slide 26: Financial summary
Financial summary FY20 FY21 FY22 FY23 FY24 TTM (Mar-25) Revenue $ 603M $1,029M $1,675M $2,128M $2,684M $2,835M % Y/Y growth 66% 70% 63% 27% 26% 26% Gross margin(1) 79% 78% 80% 82% 82% 80% Research & development 29% 30% 30% 30% 28% 29% margin(1) Sales & marketing margin(1) 31% 25% 25% 24% 23% 23% Gen
Slide 27: Financial outlook (as of May 6, 2025)
Financial outlook (as of May 6, 2025) (1) 2Q25 FY25 Revenue $787-791M $3,215-3,235M Non-GAAP operating income (2) $148-152M $625-645M Non-GAAP EPS (2) $0.40-0.42 $1.67-1.71 Weighted average diluted shares Approx. 361M Approx. 362M (1) Financial outlook are forward-looking statements. See Safe Harbor
Slide 28: Long-term margin goal
Long-term margin goal Non-GAAP % (1) 2019 2020 2021 2022 2023 2024 Goal Operating Margin -1% 11% 16% 19% 23% 25% 25%+ Free Cash Flow 0% 14% 24% 21% 28% 29% Margin (1) Non-GAAP measures. See Appendix for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures. Operat
Slide 29: Capital allocation goals
Capital allocation goals Generate healthy amounts of FCF Ensure our leadership has flexibility and capacity to invest Maintain our thoughtful and disciplined acquisition strategy 29
Slide 30: Stock-based compensation
Target annual dilution related to RSUs/PSUs awarded Stock-based compensation 2019 2020 2021 2022 2023 2024 RSU/PSU shares 0.6 4.9 5.2 7.6 7.4 7.0 awarded (M’s) % dilution on BoP 1.6% 1.7% 2.4% 2.3% 2.1% basic shares Target annual dilution is a forward-looking statement and speaks as of our Investor
Slide 31: Appendix
Appendix
Slide 32: Non-GAAP financial measures and other information
Non-GAAP financial measures and other information The statistical data, estimates and forecasts referenced in this presentation and the accompanying oral presentation are based on independent industry publications or other publicly available information, as well as information based on our internal s
Slide 33: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation Gross profit margin ($000’s) 33
Slide 34: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation Operating expenses and operating profit ($000’s) 34
Slide 35: Free cash flow bridge
Free cash flow bridge Free cash flow ($000’s) 35