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Industries
Data & Analytics
Enterprise Software
Cybersecurity
Company Size
10,001+
Company Stage
IPO
Headquarters
New York City, New York
Founded
2010
Company Historically Provides H1B Sponsorship
Datadog provides cloud-scale monitoring and analytics tools to help organizations monitor and manage their IT infrastructure. It serves many industries and offers a broad product lineup including application performance monitoring (APM), security monitoring, network monitoring, synthetic monitoring, real user monitoring, log management, and serverless alerts. Datadog covers use cases such as cloud migration, DevOps, security analytics, hybrid cloud monitoring, IoT monitoring, machine learning, and real-time business intelligence. Its business model is subscriptions-based, with pricing typically based on the number of hosts, data volume, and modules used. This setup lets customers scale from small teams to large enterprises as their needs grow.
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Total Funding
$1.7B
Above
Industry Average
Funded Over
7 Rounds
Health Insurance
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Mental Health Support
401(k) Retirement Plan
401(k) Company Match
Company Equity
Employee Stock Purchase Plan
Professional Development Budget
Hybrid Work Options
Flexible Work Hours
Paid Vacation
Datadog shares surged 16% after the cloud monitoring company reported fourth-quarter results exceeding Wall Street expectations. Revenue reached $953 million, up 29% year-over-year and above the $917 million estimate. Non-GAAP earnings per share of $0.59 beat the expected $0.55. The New York-based company saw customers spending over $1 million annually grow 30% to 603, whilst those spending above $100,000 rose 19% to 4,310. AI-powered tools, including its Site Reliability Engineering agent, attracted over 2,000 trials and paying users. First-quarter guidance topped estimates, though full-year revenue projections of $4.06 billion to $4.1 billion fell slightly below consensus forecasts. Datadog generated $1,050 million in operating cash flow and $915 million in free cash flow for fiscal 2025.
Daytona, a New York-based infrastructure company building programmable computers for AI agents, has raised $24 million in Series A funding led by FirstMark Capital. Pace Capital, Upfront Ventures, E2VC and Darkmode participated, alongside strategic investments from Datadog and Figma Ventures. The company provides "sandboxes"—composable computers where CPU, memory, storage and GPU can be configured on demand and started, paused or snapshotted at any point. This enables AI agents to launch environments in milliseconds and execute tasks like code execution and reinforcement learning at scale. Daytona reached $1 million in forward revenue run rate within three months and doubled it six weeks later. Customers include LangChain, Turing, Writer and SambaNova. The funding will expand infrastructure capacity, regional presence and hiring beyond its current 20-person team.
Datadog launches Feature Flags to help engineering teams ship new functionality quickly and reliably. By Datadog Datadog, Inc. (NASDAQ: DDOG), the AI-powered observability and security platform for cloud applications launched Feature Flags, which unifies feature management with observability to help engineering teams release new functionality fast without compromising reliability. The product is now generally available and integrates natively across Datadog APM and RUM. Modern feature management is often siloed from observability, forcing development teams to manually stitch together telemetry to understand how feature changes impact performance and reliability. These blind spots can create risky deployments, delayed incident response, and growing technical debt as stale flags accumulate across environments. Teams also frequently struggle to coordinate rollouts and rollbacks across distributed systems, relying on custom scripts and manual oversight to mitigate risk. As a result, releasing new functionality becomes a stressful, high-stakes, and manual effort. Engineers monitor dashboards, ramp traffic slowly with canaries or blue/green deployments, and scramble to identify whether spikes in errors or latency relate to a specific feature, configuration change, or unrelated service behavior. This means it can take weeks or months to launch a feature, or increases the risk of pushing untested features. Datadog Feature Flags addresses these challenges by natively connecting every feature flag to real-time observability data. With this integration, teams can immediately trace reliability issues to the exact feature or configuration responsible, automate rollouts and rollbacks, enforce experimentation guardrails, and clean up stale flags before they accumulate into technical debt. Feature Flags complements Datadog's CI/CD visibility and test optimisation products by extending observability left into release management itself. "Releasing new features is one of the riskiest parts of modern software delivery, and releasing frequently is even more important in today's AI-driven development age," said Yanbing Li, Chief Product Officer at Datadog. "Datadog Feature Flags, created with a head start after our acquisition of Eppo, allows development teams to automatically detect regressions, enforce reliability guardrails, and ship updates faster and more safely by tying every flag to real-time telemetry." Datadog Feature Flags helps organisations deliver new functionality safely and reliably by providing: * Unified Observability + Feature Management: Correlate every feature flag with Datadog telemetry (APM and RUM) to see exactly how a feature affects performance and reliability in one view. * Automated, Data-Driven Rollouts and Rollbacks: Mitigate risk with canary releases, circuit breakers, and instant rollbacks triggered by real-time service health signals, without manual intervention or custom scripts. * Dynamic Configuration and Safe Experimentation at Scale: Adjust system behavior instantly without redeploying code. Enforce guardrails across environments and prevent reliability regressions during experiments. * Automated Stale-Flag Cleanup: Reduce technical debt with Bits AI and MCP integrations that identify unused flags and generate pull requests to safely remove dead paths from codebases. Feature Flags is now generally available. For more information, visit: https://www.datadoghq.com/blog/feature-flags/ Maximising cloud efficiency - LUMEN WEBINAR 23 april 2025. According to KPMG, companies typically spend 35% more on cloud than is required to deliver business objectives The rush to the cloud has led to insufficient oversight, with many organisations struggling to balance the value of cloud agility and innovation against the need for guardrails to control costs. Join us for an exclusive webinar on Cloud Optimisation. In this event, the team from Lumen will explain how you can maximise cloud efficiency while reducing cost. The session will reveal how to implement key steps for effective cloud optimisation. Register for the event now! Promote your webinar on itwire. It's all about Webinars. Marketing budgets are now focused on Webinars combined with Lead Generation. If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event. 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Datadog has seen increased insider selling recently, even as the company expands its AI-focused initiatives and maintains analyst support. The observability and security platform provider is developing AI-driven capabilities including its Bits AI platform and an expanded security offering. Analysts remain optimistic, with the shares trading approximately 34% below the consensus target of $196.18 at their current price of $129.32. Simply Wall St estimates the stock is about 40% undervalued. However, near-term momentum has weakened, with shares down 4.9% over 30 days. The company's profit margins have compressed to 3.3% from 7.6% a year ago, whilst the stock trades at a high 424.7 times earnings. The contrast between insider selling and external confidence creates a mixed signal for investors evaluating the stock.
Goldman Sachs downgrades Datadog stock rating to Sell on competition concerns. Investing.com - Goldman Sachs has downgraded Datadog (NASDAQ:DDOG) to a Sell rating from Buy, setting a price target of $113.00, which represents a 14% downside from the current price of $125.49. InvestingPro data shows the stock's RSI indicates oversold territory, potentially signaling a different outlook than Goldman's bearish stance. The investment bank cited expectations that 2026 will bring intensified competition in the observability market, with customers increasingly focused on budget optimization that could pressure Datadog's fundamentals. Despite these concerns, the company maintains impressive gross profit margins of nearly 80% and has grown revenue by 26.63% over the last twelve months. Goldman Sachs identified three key concerns: AI adoption driving increased data volume that will prompt customers to reconsider observability strategies; growing competition from companies like Grafana, Clickhouse, and Chronosphere (being acquired by Palo Alto Networks) that focus on reducing customers' Datadog expenses; and Amazon's heightened focus on capturing cloud observability market share. The firm noted that while Datadog offers "one of the most complete platforms in Observability with a strong track record of delivering customer value," the industry appears to be evolving toward a "more deflationary architecture." Goldman Sachs expects these market dynamics to result in slowing revenue growth for Datadog, potentially increased operating expenses or M&A activity, and multiple compression for the stock. In other recent news, Datadog reported strong quarterly earnings, highlighted by MoffettNathanson as one of the best in its coverage universe. The firm reiterated its Buy rating on Datadog, with a price target of $255, citing benefits from AI-native business through 2025. Additionally, Datadog has expanded its collaboration with Amazon Web Services (AWS) through a new strategic agreement, enhancing product offerings in AI, observability, and security for cloud environments. The company also launched Bits AI SRE, an AI agent designed to autonomously address technical incidents, aiming to reduce response times and minimize disruptions. In a move to optimize cloud costs, Datadog introduced a Storage Management product for managing cloud object storage expenses, now available for Amazon S3 and in preview for other platforms. Furthermore, Datadog appointed John Trapani as Field CTO for Financial Services to develop observability strategies in that sector. These developments reflect Datadog's ongoing efforts to enhance its technological capabilities and strengthen its market position. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. Is DDOG a bargain right now? The fastest way to find out is with our Fair Value calculator. We use a mix of 17 proven industry valuation models for maximum accuracy. Get the bottom line for DDOG plus thousands of other stocks and find your next hidden gem with massive upside.
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Industries
Data & Analytics
Enterprise Software
Cybersecurity
Company Size
10,001+
Company Stage
IPO
Headquarters
New York City, New York
Founded
2010
Find jobs on Simplify and start your career today