News & Events News Events & Presentations
Financials Quarterly Results Annual Reports & Proxy Statements SEC Filings
Corporate & ESG Executive Management Board of Directors Corporate Governance Committee Composition ESG
Resources Stock Quote & Chart Analyst Coverage Contact Investor Relations Email Alerts FAQ

News

Datadog Announces Third Quarter 2021 Financial Results

November 4, 2021 at 4:05 PM EDT
Third quarter revenue grew 75% year-over-year to $270 million
Strong growth of larger customers, with 1,800 $100k+ ARR customers, up from 1,082 a year ago
Announced ten new products and features at Dash

NEW YORK, Nov. 4, 2021 /PRNewswire/ -- Datadog, Inc. (NASDAQ: DDOG), the monitoring and security platform for cloud applications, today announced financial results for its third quarter ended September 30, 2021.

"We are pleased with our third quarter performance, with revenue growth accelerating to 75% year-over-year. We saw broad-based strength across customer segments and products," said Olivier Pomel, co-founder and CEO of Datadog. "Digital transformation and cloud migration continue to be transformational forces for companies of all sizes."

Pomel added, "With ten new products and major features announced at our annual user conference, Dash, we are continuing to innovate at a rapid pace. We are broadening our observability platform, further developing our Cloud Security Platform, and launching the general availability of CI Visibility, which represents a major step towards shift-left observability for developer workflows."

Third Quarter 2021 Financial Highlights:

  • Revenue was $270.5 million, an increase of 75% year-over-year.
  • GAAP operating loss was $(4.9) million; GAAP operating margin was (2)%.
  • Non-GAAP operating income was $44.0 million; non-GAAP operating margin was 16%.
  • GAAP net loss per diluted share was $(0.02); non-GAAP net income per diluted share was $0.13.
  • Operating cash flow was $67.4 million, with free cash flow of $57.1 million.
  • Cash, cash equivalents, restricted cash, and marketable securities were $1.5 billion as of September 30, 2021.

Third Quarter & Recent Business Highlights:

  • As of September 30, 2021, we had 1,800 customers with ARR of $100,000 or more, an increase of 66% from 1,082 as of September 30, 2020.
  • Announced ten new products and features at our annual user conference, Dash. Product announcements included:
      • The general availability of CI Visibility, to help customers gain visibility into their developer tests and pipelines.
      • The general availability of Session Replay, a new product in our Real User Monitoring suite, through which customers can watch individual user sessions using a video-like interface.
      • The general availability of Funnel Analysis, to track user behavior through conversion funnels.
      • The general availability of Network Device Monitoring, enabling customers to automatically discover and monitor on-premise network devices and appliances.
      • The general availability of Datadog Apps, which allows partners to add new functionality and deeper integrations to the Datadog platform, including new visualizations and custom interactions.
      • The introduction of Online Archives for Log Management, a warehousing solution with long-term archival and online query capabilities.
      • The private beta launch of Cloud Cost Management, to help our customers control costs for their rapidly growing cloud and container environments.
      • Official Datadog support of Vector, an open-source tool that allows users to collect, enrich, and transform observability data, and automatically route it to the destination of their choice.
      • The private beta launch of Observability Pipelines, which will include enterprise-class capability for Vector, and the ability for end users to control it remotely using Datadog while running on their premises or their cloud accounts.
      • The private beta launch of Universal Service Monitoring, to track performance of all applications and services without requiring custom code or instrumentation.
      • The private beta launch of Application Security, a product within our Cloud Security Platform, to monitor attacks and correlate them with application traces.
  • Announced the general availability of Database Monitoring. With insights into query performance and explain plans, as well as automatic correlation of query metrics with application and infrastructure metrics, Database Monitoring provides engineers and database administrators the visibility they need to quickly find and fix application performance issues that arise from slow running database queries.

Fourth Quarter and Full Year 2021 Outlook:

Based on information as of today, November 4, 2021, Datadog is providing the following guidance:

  • Fourth Quarter 2021 Outlook:
    • Revenue between $290 million and $292 million.
    • Non-GAAP operating income between $38 million and $40 million.
    • Non-GAAP net income per share between $0.11 and $0.12, assuming approximately 347 million weighted average diluted shares outstanding.
  • Full Year 2021 Outlook:
    • Revenue between $993 million and $995 million.
    • Non-GAAP operating income between $133 million and $135 million.
    • Non-GAAP net income per share between $0.39 and $0.40, assuming approximately 344 million weighted average diluted shares outstanding.

Datadog has not reconciled its expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog's results computed in accordance with GAAP.

Conference Call Details:

  • What: Datadog financial results for the third quarter of 2021 and outlook for the fourth quarter and the full year 2021
  • When: November 4, 2021 at 5:00 P.M. Eastern Time (2:00 P.M. Pacific Time)
  • Dial in: To access the call in the U.S., please dial (800) 708-4540, and for international callers, please dial (847) 619-6397. Callers may provide confirmation number 50234632 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
  • Webcast: https://investors.datadoghq.com (live and replay)
  • Replay: A replay of the call will be archived on the investor relations website

About Datadog

Datadog is the monitoring and security platform for cloud applications. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of our customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.

Forward-Looking Statements

This press release and the earnings call referencing this press release contain "forward-looking" statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Datadog's strategy, partnerships, investments and long-term opportunity, and Datadog's future financial performance, including its outlook for the fourth quarter and full year 2021. These forward-looking statements are based on Datadog's current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Datadog's actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to (1) our recent rapid growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our business depends on our existing customers purchasing additional subscriptions and products from us and renewing their subscriptions; (5) our ability to attract new customers; (6) our ability to effectively develop and expand our sales and marketing capabilities; (7) risk of a security breach; (8) risk of interruptions or performance problems associated with our products and platform capabilities; (9) our ability to adapt and respond to rapidly changing technology or customer needs; (10) the competitive markets in which we participate; (11) risks associated with successfully managing our growth; (12) general market, political, economic, and business conditions; and (13) the impact that the ongoing COVID-19 pandemic and any related economic downturn could have on our or our customers' businesses, financial condition and results of operations. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (SEC), including in the section entitled "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, filed with the SEC on August 6, 2021. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 and other filings and reports that we may file from time to time with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

About Non-GAAP Financial Measures

Datadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative), non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, and free cash flow. Datadog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Datadog's financial performance. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Datadog's non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Datadog's reported financial results.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Datadog defines non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative), non-GAAP operating income (loss), non-GAAP operating margin and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) non-cash benefit related to tax adjustment; (4) employer payroll taxes on employee stock transactions; and (5) amortization of issuance costs. Datadog defines free cash flow as net cash provided by operating activities, minus capital expenditures and minus capitalized software development costs. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

Management believes these non-GAAP financial measures are useful to investors and others in assessing Datadog's operating performance due to the following factors:

Stock-based compensation. Datadog utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of acquired intangibles. Datadog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.

Non-cash benefit related to tax adjustment. Datadog recorded a contingent payroll tax liability in conjunction with a common stock repurchase transaction in 2016. In 2020, the period of limitations for assessing the contingent Federal payroll tax liability expired and the Company was legally released from being the primary obligor, and recognized a benefit in the consolidated statement of operations. Datadog does not believe this is reflective of on-going results and therefore adjusted for this benefit.

Employer payroll taxes on employee stock transactions. Datadog excludes employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of Datadog's common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of Datadog's business.

Amortization of issuance costs. In May 2020, Datadog issued $747.5M of convertible senior notes due 2025, which bear interest at an annual fixed rate of 0.125%. Debt issuance costs, which reduce the carrying value of the convertible debt instrument, are amortized as interest expense over the term. The expense for the amortization of debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

Additionally, Datadog's management believes that the non-GAAP financial measure free cash flow is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures and the capitalization of software development costs due to the fact that these expenditures are considered to be a necessary component of ongoing operations.

Operating Metrics

Datadog's number of customers with ARR of $100,000 or more and number of customers with ARR of $1 million or more are based on the ARR of each customer, as of the last month of the quarter.

We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.

We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts, additional usage, usage from subscriptions for a committed contractual amount of usage that is delivered as used, and monthly subscriptions. We updated the definition of MRR as of the quarter ended September 30, 2021 to capture usage from subscriptions with committed contractual amounts and applied this change retroactively. ARR and MRR should be viewed independently of revenue as they are operating metrics and are not intended to be replacements or forecasts of revenue.

 

Datadog, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share data; unaudited)

 
   

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

   

2021

 

2020

 

2021

 

2020

Revenue

 

$

270,488

   

$

154,675

   

$

702,586

   

$

425,935

 

Cost of revenue (1)(2)(4)

 

63,332

   

33,984

   

167,096

   

89,340

 

Gross profit

 

207,156

   

120,691

   

535,490

   

336,595

 

Operating expenses:

               

Research and development (1)(3)(4)

 

112,675

   

56,440

   

286,720

   

142,928

 

Sales and marketing (1)(2)(3)(4)

 

75,827

   

57,142

   

210,592

   

153,626

 

General and administrative (1)(3)(4)

 

23,549

   

16,376

   

65,789

   

44,876

 

Total operating expenses

 

212,051

   

129,958

   

563,101

   

341,430

 

Operating loss

 

(4,895)

   

(9,267)

   

(27,611)

   

(4,835)

 

Other income (loss):

               

Interest expense (5)

 

(4,912)

   

(12,423)

   

(15,448)

   

(17,424)

 

Interest income and other income, net

 

5,040

   

7,135

   

16,105

   

15,204

 

Other income (loss), net

 

128

   

(5,288)

   

657

   

(2,220)

 

Loss before provision for income taxes

 

(4,767)

   

(14,555)

   

(26,954)

   

(7,055)

 

Provision for income taxes

 

(717)

   

(595)

   

(960)

   

(1,332)

 

Net loss

 

$

(5,484)

   

$

(15,150)

   

$

(27,914)

   

$

(8,387)

 

Basic and diluted net loss per share

 

$

(0.02)

   

$

(0.05)

   

$

(0.09)

   

$

(0.03)

 

Weighted average shares used in calculating basic and diluted net loss per share

 

310,247

   

302,554

   

308,115

   

299,105

 
 

(1) Includes stock-based compensation expense as follows:

               

Cost of revenue

 

$

1,427

   

$

529

   

$

2,957

   

$

1,167

 

Research and development

 

27,239

   

10,173

   

64,947

   

24,723

 

Sales and marketing

 

9,739

   

6,068

   

23,355

   

13,683

 

General and administrative

 

5,590

   

3,946

   

16,112

   

10,037

 

Total

 

$

43,995

   

$

20,716

   

$

107,371

   

$

49,610

 
 

(2) Includes amortization of acquired intangibles as follows:

               

Cost of revenue

 

$

1,311

   

$

274

   

$

2,574

   

$

668

 

Sales and marketing

 

229

   

   

392

   

 

Total

 

$

1,540

   

$

274

   

$

2,966

   

$

668

 
 

(3) Includes non-cash benefit related to tax adjustment as follows:

               

Research and development

 

$

   

$

   

$

   

$

(2,729)

 

Sales and marketing

 

   

   

   

(449)

 

General and administrative

 

   

   

   

(2,383)

 

Total

 

$

   

$

   

$

   

$

(5,561)

 
 

(4) Includes employer payroll taxes on employee stock transactions as follows:

Cost of revenue

 

$

62

   

$

32

   

$

253

   

$

154

 

Research and development

 

1,523

   

418

   

5,395

   

1,877

 

Sales and marketing

 

1,275

   

1,354

   

5,230

   

3,014

 

General and administrative

 

520

   

282

   

838

   

552

 

Total

 

$

3,380

   

$

2,086

   

$

11,716

   

$

5,597

 
 

(5) Includes amortization of issuance costs as follows:

               

Interest expense

 

$

838

   

$

8,062

   

$

2,510

   

$

10,546

 

Total

 

$

838

   

$

8,062

   

$

2,510

   

$

10,546

 

 

 

Datadog, Inc.

Condensed Consolidated Balance Sheets

(In thousands; unaudited)

 
   

September 30,
2021

 

December 31,
2020

ASSETS

       

CURRENT ASSETS:

       

Cash and cash equivalents

 

$

286,966

   

$

224,927

 

Marketable securities

 

1,180,160

   

1,292,532

 

Accounts receivable, net of allowance for credit losses of $2,517 and $2,468 as of September 30, 2021 and December 31, 2020, respectively

 

224,602

   

163,359

 

Deferred contract costs, current

 

19,933

   

13,638

 

Prepaid expenses and other current assets

 

24,675

   

23,624

 

Total current assets

 

1,736,336

   

1,718,080

 

Property and equipment, net

 

68,820

   

47,197

 

Operating lease assets

 

61,972

   

57,829

 

Goodwill

 

255,735

   

17,609

 

Intangible assets, net

 

12,803

   

2,069

 

Deferred contract costs, non-current

 

35,508

   

26,750

 

Restricted cash

 

3,572

   

3,784

 

Other assets

 

19,427

   

16,967

 

TOTAL ASSETS

 

$

2,194,173

   

$

1,890,285

 

LIABILITIES AND STOCKHOLDERS' EQUITY

       

CURRENT LIABILITIES:

       

Accounts payable

 

$

34,654

   

$

21,342

 

Accrued expenses and other current liabilities

 

85,173

   

55,351

 

Operating lease liabilities, current

 

19,425

   

16,326

 

Deferred revenue, current

 

300,950

   

204,825

 

Total current liabilities

 

440,202

   

297,844

 

Operating lease liabilities, non-current

 

53,189

   

51,433

 

Convertible senior notes, net

 

734,643

   

575,864

 

Deferred revenue, non-current

 

3,266

   

3,450

 

Other liabilities

 

5,461

   

4,262

 

Total liabilities

 

1,236,761

   

932,853

 

STOCKHOLDERS' EQUITY:

       

Common stock

 

3

   

3

 

Additional paid-in capital

 

1,116,872

   

1,103,305

 

Accumulated other comprehensive (loss) income

 

(188)

   

2,287

 

Accumulated deficit

 

(159,275)

   

(148,163)

 

Total stockholders' equity

 

957,412

   

957,432

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,194,173

   

$

1,890,285

 
         

 

 

Datadog, Inc.

Condensed Consolidated Statements of Cash Flow

(In thousands; unaudited)

 
   

Three Months Ended

September 30,

 

Nine Months Ended
September 30,

   

2021

 

2020

 

2021

 

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

               

Net loss

 

$

(5,484)

   

$

(15,150)

   

$

(27,914)

   

$

(8,387)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

               

Depreciation and amortization

 

6,197

   

3,972

   

16,062

   

11,367

 

Amortization of discounts or premiums on marketable securities

 

3,716

   

3,884

   

11,829

   

5,344

 

Amortization of issuance costs

 

838

   

8,062

   

2,510

   

10,546

 

Amortization of deferred contract costs

 

4,704

   

2,721

   

12,557

   

7,348

 

Stock-based compensation, net of amounts capitalized

 

43,995

   

20,716

   

107,371

   

49,610

 

Non-cash lease expense

 

4,544

   

3,453

   

12,605

   

10,004

 

Allowance for credit losses on accounts receivable

 

699

   

655

   

1,226

   

2,656

 

Loss on disposal of property and equipment

 

102

   

(4)

   

258

   

4

 

Changes in operating assets and liabilities:

               

Accounts receivable, net

 

(36,972)

   

2,431

   

(61,880)

   

(21,253)

 

Deferred contract costs

 

(10,909)

   

(4,567)

   

(27,610)

   

(15,804)

 

Prepaid expenses and other current assets

 

1,596

   

(340)

   

(941)

   

(6,821)

 

Other assets

 

(912)

   

310

   

(1,844)

   

(605)

 

Accounts payable

 

5,060

   

3,714

   

12,432

   

6,406

 

Accrued expenses and other liabilities

 

11,918

   

5,236

   

19,226

   

6,884

 

Deferred revenue

 

38,287

   

1,177

   

94,865

   

27,964

 

Net cash provided by operating activities

 

67,379

   

36,270

   

170,752

   

85,263

 

CASH FLOWS FROM INVESTING ACTIVITIES:

               

Purchases of marketable securities

 

(406,429)

   

(273,550)

   

(897,412)

   

(1,477,063)

 

Maturities of marketable securities

 

365,486

   

146,646

   

935,692

   

268,500

 

Proceeds from sale of marketable securities

 

19,417

   

85,700

   

61,132

   

85,700

 

Purchases of property and equipment

 

(3,324)

   

(1,412)

   

(7,551)

   

(4,336)

 

Capitalized software development costs

 

(6,972)

   

(6,217)

   

(19,364)

   

(14,371)

 

Cash paid for acquisition of businesses; net of cash acquired

 

146

   

   

(200,202)

   

(2,363)

 

Net cash used in investing activities

 

(31,676)

   

(48,833)

   

(127,705)

   

(1,143,933)

 

CASH FLOWS FROM FINANCING ACTIVITIES:

               

Proceeds from exercise of stock options

 

4,489

   

5,119

   

10,651

   

12,354

 

Initial public offering costs

 

   

   

   

(421)

 

Proceeds for issuance of common stock under the employee stock purchase plan

 

   

   

9,794

   

7,680

 

Employee payroll taxes paid related to net share settlement under the employee stock purchase plan

 

   

(118)

   

(245)

   

(977)

 

Proceeds from issuance of convertible senior notes, net of issuance costs

 

   

(474)

   

   

730,207

 

Purchase of capped call related to convertible senior notes

 

   

   

   

(89,625)

 

Net cash provided by financing activities

 

4,489

   

4,527

   

20,200

   

659,218

 
                 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(758)

   

506

   

(1,420)

   

393

 
                 

NET INCREASE (DECREASE)  IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

39,434

   

(7,530)

   

61,827

   

(399,059)

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period

 

251,104

   

209,660

   

228,711

   

601,189

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period

 

$

290,538

   

$

202,130

   

$

290,538

   

$

202,130

 
                 

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE:

Cash and cash equivalents

 

$

286,966

   

$

198,523

   

$

286,966

   

$

198,523

 

Restricted cash

 

3,572

   

3,607

   

3,572

   

3,607

 

Total cash, cash equivalents and restricted cash

 

$

290,538

   

$

202,130

   

$

290,538

   

$

202,130

 

 

 

Datadog, Inc.

Reconciliation from GAAP to Non-GAAP Results

(In thousands, except per share data; unaudited)

 
   

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

   

2021

 

2020

 

2021

 

2020

Reconciliation of gross profit and gross margin

               

GAAP gross profit

 

$

207,156

 

$

120,691

 

$

535,490

 

$

336,595

Plus: Stock-based compensation expense

 

1,427

 

529

 

2,957

 

1,167

Plus: Amortization of acquired intangibles

 

1,311

 

274

 

2,574

 

668

Plus: Employer payroll taxes on employee stock transactions

 

62

 

32

 

253

 

154

Non-GAAP gross profit

 

$

209,956

 

$

121,526

 

$

541,274

 

$

338,584

GAAP gross margin

 

77%

 

78%

 

76%

 

79%

Non-GAAP gross margin

 

78%

 

79%

 

77%

 

79%

                 

Reconciliation of operating expenses

               

GAAP research and development

 

$

112,675

 

$

56,440

 

$

286,720

 

$

142,928

Less: Stock-based compensation expense

 

(27,239)

 

(10,173)

 

(64,947)

 

(24,723)

Plus: Non-cash benefit related to tax adjustment

 

 

 

 

2,729

Less: Employer payroll taxes on employee stock transactions

 

(1,523)

 

(418)

 

(5,395)

 

(1,877)

Non-GAAP research and development

 

$

83,913

 

$

45,849

 

$

216,378

 

$

119,057

                 

GAAP sales and marketing

 

$

75,827

 

$

57,142

 

$

210,592

 

$

153,626

Less: Stock-based compensation expense

 

(9,739)

 

(6,068)

 

(23,355)

 

(13,683)

Less: Amortization of acquired intangibles

 

(229)

 

 

(392)

 

Plus: Non-cash benefit related to tax adjustment

 

 

 

 

449

Less: Employer payroll taxes on employee stock transactions

 

(1,275)

 

(1,354)

 

(5,230)

 

(3,014)

Non-GAAP sales and marketing

 

$

64,584

 

$

49,720

 

$

181,615

 

$

137,378

                 

GAAP general and administrative

 

$

23,549

 

$

16,376

 

$

65,789

 

$

44,876

Less: Stock-based compensation expense

 

(5,590)

 

(3,946)

 

(16,112)

 

(10,037)

Plus: Non-cash benefit related to tax adjustment

 

 

 

 

2,383

Less: Employer payroll taxes on employee stock transactions

 

(520)

 

(282)

 

(838)

 

(552)

Non-GAAP general and administrative

 

$

17,439

 

$

12,148

 

$

48,839

 

$

36,670

                 

Reconciliation of operating income and operating margin

               

GAAP operating (loss) income

 

$

(4,895)

 

$

(9,267)

 

$

(27,611)

 

$

(4,835)

Plus: Stock-based compensation expense

 

43,995

 

20,716

 

107,371

 

49,610

Plus: Amortization of acquired intangibles

 

1,540

 

274

 

2,966

 

668

Less: Non-cash benefit related to tax adjustment

 

 

 

 

(5,561)

Plus: Employer payroll taxes on employee stock transactions

 

3,380

 

2,086

 

11,716

 

5,597

Non-GAAP operating income

 

$

44,020

 

$

13,809

 

$

94,442

 

$

45,479

GAAP operating margin

 

(2)%

 

(6)%

 

(4)%

 

(1)%

Non-GAAP operating margin

 

16%

 

9%

 

13%

 

11%

                 

Reconciliation of net (loss) income

               

GAAP net loss

 

$

(5,484)

 

$

(15,150)

 

$

(27,914)

 

$

(8,387)

Plus: Stock-based compensation expense

 

43,995

 

20,716

 

107,371

 

49,610

Plus: Amortization of acquired intangibles

 

1,540

 

274

 

2,966

 

668

Less: Non-cash benefit related to tax adjustment

 

 

 

 

(5,561)

Plus: Employer payroll taxes on employee stock transactions

 

3,380

 

2,086

 

11,716

 

5,597

Plus: Amortization of issuance costs

 

838

 

8,062

 

2,510

 

10,546

Non-GAAP net income

 

$

44,269

 

$

15,988

 

$

96,649

 

$

52,473

Net income per share - basic

 

$

0.14

 

$

0.05

 

$

0.31

 

$

0.18

Net income per share - diluted

 

$

0.13

 

$

0.05

 

$

0.28

 

$

0.16

Shares used in non-GAAP net income per share calculations:

               

Basic

 

310,247

 

302,554

 

308,115

 

299,105

Diluted

 

344,453

 

333,011

 

343,071

 

330,831

 

 

Datadog, Inc.

Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow

(In thousands; unaudited)

 
   

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

   

2021

 

2020

 

2021

 

2020

Net cash provided by operating activities

 

$

67,379

   

$

36,270

   

$

170,752

   

$

85,263

 

Less: Purchases of property and equipment

 

(3,324)

   

(1,412)

   

(7,551)

   

(4,336)

 

Less: Capitalized software development costs

 

(6,972)

   

(6,217)

   

(19,364)

   

(14,371)

 

Free cash flow

 

$

57,083

   

$

28,641

   

$

143,837

   

$

66,556

 

 

Contact Information
Yuka Broderick
Datadog Investor Relations
(866) 329-4466
IR@datadog.com

David Chao
Datadog Corporate Communications
Press@datadog.com

Datadog is a registered trademark of Datadog, Inc.

All product and company names herein may be trademarks of their registered owners.

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/datadog-announces-third-quarter-2021-financial-results-301416918.html

SOURCE Datadog, Inc.

Get Datadog Email Updates

Sign up for email alerts!

Contact IR

Created with Sketch.IR@datadoghq.com