Datadog Inc - Ordinary Shares - Class A

Q1 results beat; growth accelerating - Revenue $1.01B, +32% YoY, and +6% QoQ (highest Q1 sequential growth since 2022). - Q1 guidance beat: revenue above the high end of its guided range. - Free cash flow: $289M (29% margin); cash from ops $335M. - Customer base expansion: ~33,200 customers (up from ~3,500 a year ago). Quarterly revenue also exceeded $1B for the first time.

Retention + platform expansion remain strong (investor “health check”) - Gross revenue retention stable in the mid- to high-90% range (shows durability/misson-critical usage). - Trailing 12-month net revenue retention: low 120% (up from ~120 last quarter). - Platform breadth accelerating: customers using ≥4 products: 56% (from 51% a year ago); ≥6 products: 35% (from 28%); ≥8 products: 20% (from 13%). - Total ARR >$4B; 26 products with 5 products >$100M ARR and 3 more at $50M–$100M.

AI is both a demand driver and a product driver (plus surprising “training” tailwinds) - AI native customers are accelerating: CEO cited new land deals with major AI research teams (2 hyperscale AI research divisions) tied to improving/optimizing training workflows. - Datadog for AI usage growing fast: 6,500+ customers using 1+ AI integrations (about 20% of customers but ~80% of AI-related ARR). - Usage indicators: SRE agent investigations >2x (Dec→Mar); spans to LLM Observability nearly 3x QoQ; MCP server calls ~4x QoQ. - Surprising strategic shift: management now sees training becoming a real market (previously inference was the bigger focus “last year”); heterogenous silicon + GPU monitoring needs are cited as helping adoption.