Strong Financial Performance: Datadog reported Q1 2025 revenue of $762 million, marking a 25% year-over-year (YOY) increase, and exceeding guidance expectations. The company generated free cash flow of $244 million, with a free cash flow margin of 32%. This reflects robust operational efficiency and demand for its services despite economic uncertainties.
Customer Growth and Product Adoption: The company ended Q1 with approximately 30,500 customers, up from about 28,000 a year ago. A significant milestone was the increase in customers with an Annual Recurring Revenue (ARR) of $100,000 or more to 3,770, accounting for approximately 88% of ARR. Furthermore, 83% of customers utilized multiple products, indicating strong customer engagement and cross-selling opportunities.
Dollar Bookings Surge: Datadog signed 11 deals with a Total Contract Value (TCV) of $10 million or more in Q1, a stark rise from just one deal in the previous year. This suggests strong demand and increasing acceptance of Datadog's platform among larger enterprises, with dollar bookings for new logos rising over 70% YOY.