DDOG Q2 2025 Earnings

Call Details

• Call Title: Datadog Q2 2025 Earnings Call
• Date: August 7, 2025 at 12:00 PM UTC
• Management Team:
  • Yuka Broderick (SVP of Investor Relations)
  • Olivier Pomel (Chief Executive Officer)
  • David Obstler (Chief Financial Officer)

Call Summary

Financial Performance

• Revenue was $827 million, up 28% year over year and above the high end of the guidance range.
• Q2 customer count was about 31,400, up from about 28,700 a year ago, including roughly 150 customers from the Apple and Metaplane acquisitions.
• Free cash flow was $165 million, representing a free cash flow margin of 20%.
• Billings were $852 million, up 20% year over year, and remaining performance obligations (RPO) were $2.43 billion, up 35% year over year.
• Non-GAAP gross profit was $669 million for a gross margin of 80.9%.
• Non-GAAP operating income was $164 million for a 20% operating margin, compared with 22% last quarter and 24% in the year-ago quarter.
• Cash, cash equivalents, and marketable securities totaled $3.9 billion, and cash flow from operations was $200 million in the quarter.

Guidance

• Q3 revenue guidance is $847 to $851 million, representing 23% year over year growth.
• Q3 non-GAAP operating income guidance is $176 to $180 million, implying a 21% operating margin.
• Fiscal 2025 revenue guidance is $3.312 to $3.322 billion, representing 23% to 24% year over year growth.
• Fiscal 2025 non-GAAP operating income guidance is $684 to $694 million, implying a 21% operating margin.
• Fiscal 2025 non-GAAP net income per share guidance is $1.80 to $1.83 based on approximately 364 million diluted shares, and Q3 non-GAAP net income per share is $0.44 to $0.46.
• Net interest and other income is expected to be approximately $150 million for fiscal 2025 and cash taxes are expected to be about $10 to $20 million for 2025 due to recent federal tax legislation.
• Capital expenditures and capitalized software are expected to be 4% to 5% of revenues in fiscal 2025.