DDOG Q2 2023 Earnings

Call Details

• Call Title: Datadog Q2 2023 Earnings Call
• Date: August 8, 2023 at 12:00 PM UTC
• Management Team:
  • Yuka Broderick (Vice President of Investor Relations)
  • Olivier Pomel (Chief Executive Officer)
  • David Obstler (Chief Financial Officer)

Call Summary

Financial Performance

• Revenue was $509 million, an increase of 25% year-over-year and up 6% quarter-over-quarter.
• Billings were $520 million in the quarter, which was up 31% year-over-year.
• Remaining performance obligations (RPO) were $1.25 billion, up 42% year-over-year, with current RPO growth of about up 30% year-over-year.
• Gross profit was $414 million, representing a gross margin of 81.3% compared with 80.5% last quarter and 80.8% a year ago.
• Operating income was $106 million, representing a 21% operating margin, which improved from 18% last quarter.
• Cash, cash equivalents, and marketable securities totaled $2.2 billion at quarter end.
• Cash from operations was $153 million and free cash flow was $142 million for a free cash flow margin of 28%.

Guidance

• Third-quarter revenue guidance is $521 million to $525 million, representing 19% to 20% year-over-year growth.
• Third-quarter non-GAAP operating income guidance is $98 million to $102 million.
• Third-quarter non-GAAP net income per diluted share guidance is $0.33 to $0.35 based on approximately 354 weighted average diluted shares outstanding.
• Full fiscal year 2023 revenue guidance is $2.05 billion to $2.06 billion, representing 22% to 23% year-over-year growth.
• Full-year non-GAAP operating income guidance is $390 million to $400 million and full-year non-GAAP net income per share guidance is $1.30 to $1.34 based on approximately 351 million diluted shares.
• Guidance incorporates a stated philosophy of carrying forward recent trends and applying additional conservatism, particularly on usage growth of existing customers.