Revenue: $482 million +33% YoY, +3% QoQ
- outage in March $5 million impact on revenue
Gross profit: $388 million -> gross margin of 79% flat YoY
Operating income: -$35 million vs +10 million YoY
Total customers: 25,500 +29% YoY
Exceeded $2 billion in total ARR for the first time
% customers using 4 or more and 6 or more products continuing to increase QoQ
ARR > $100K: 2,910 +29% YoY
Dollar-based net retention rate >130% but expected to be below 130% in Q2
Free cash flow: $116 million -10% YoY -> FCF margin of 24%
R&D as % of Revenue: 48% vs 41% YoY
S&M as % of Revenue: 30% vs 28% YoY
Datadog secret sauce -> ploughing gross profit into R&D for additional product features to serve its customers instead of spending dollars convincing customers to use its products
Revenue Guidance
- Q2: $498 million to $502 million, +23% to 24% YoY
- Fiscal year 2023: $2.08 billion to $2.10 billion, +24% to 25% YoY growth
Overall, long-term investment outlook continues to be strong with
$DDOG on track to meet growth assumptions
Check out the complete in-depth analysis that I published last month