DDOG Q4 2022 Earnings

Call Details

• Call Title: Datadog Q4 2022 Earnings Call
• Date: February 16, 2023 at 1:00 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 in Q4 was $469M, up 44% year-over-year and up 8% quarter-over-quarter.
• Billings in Q4 were $536M, representing a 31% year-over-year increase.
• Remaining performance obligations were $1.06B, up 30% year-over-year with current RPO growth in the high 30s year-over-year.
• Gross profit in Q4 was $378M, representing a gross margin of 81% on a non-GAAP basis.
• Q4 non-GAAP operating income was $83M, equating to an 18% operating margin compared to $71M and 22% operating margin in the year-ago quarter.
• Free cash flow for Q4 was $96M with a free cash flow margin of 21%, and full-year free cash flow exceeded $350M.

Guidance

• Q1 2023 revenue guidance is $466M to $470M, representing 28% to 29% year-over-year growth.
• Full-year 2023 revenue guidance is $2.07B to $2.09B, representing 24% to 25% year-over-year growth.
• Full-year 2023 non-GAAP operating income guidance is $300M to $320M, implying roughly a 15% operating margin at the midpoint.
• Q1 non-GAAP operating income is expected to be $68M to $72M, or a 15% operating margin.
• Guidance embeds a continued expectation for cloud optimization pressure and seasonally weaker growth following December, and does not assume an inflection back to prior usage trends.
• 2023 assumptions include interest and other income of approximately $75M and tax expense of $11M to $13M.