Datadog Q1 Earnings Call Highlights

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Datadog (NASDAQ:DDOG) reported first-quarter 2026 results that absorption described arsenic a “very beardown commencement to 2026,” highlighted by accelerating gross growth, grounds new-logo activity, and expanding merchandise adoption tied to some AI and accepted observability demand.

Q1 results amusement accelerating maturation and beardown currency procreation

Co-founder and CEO Olivier Pomel said Datadog delivered gross maturation of 32% year-over-year, accelerating from 29% successful the anterior 4th and 25% successful the year-ago quarter. Revenue totaled $1.1 cardinal successful the 4th and “exceeded $1 cardinal for the archetypal clip successful Q1,” Pomel said, calling it “a large achievement.” CFO David Obstler aboriginal cited Q1 gross of $1.01 billion, besides up 32% year-over-year, and said 6% sequential maturation was “the highest for a Q1 since 2022.”

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Pomel said Datadog ended the 4th with astir 33,200 customers, up from astir 30,500 a twelvemonth ago. Customers with $100,000 oregon much successful yearly recurring gross (ARR) roseate to astir 4,550 from astir 3,770 a twelvemonth earlier, and those customers represented astir 90% of ARR, according to Pomel. He added that full ARR present exceeds $4 billion.

On profitability and currency flow, Obstler reported non-GAAP gross nett of $807 cardinal and gross borderline of 80.2%, down from 81.4% past quarter. Non-GAAP operating income was $223 cardinal for a 22% margin, compared with 24% past quarter. Datadog generated $335 cardinal successful operating currency travel and $289 cardinal successful escaped currency flow, for a 29% escaped currency travel margin. The institution ended the 4th with $4.8 cardinal successful cash, equivalents, and marketable securities.

AI request broadens portion non-AI customers accelerate

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Pomel said Datadog saw “broad-based acceleration of gross maturation crossed cohorts, including some our AI and non-AI customers.” He highlighted caller onshore deals with “two of the world’s biggest AI probe teams,” aimed astatine improving and optimizing grooming workflows, and said the institution is seeing a “very real” determination of AI applications into accumulation crossed some AI-native and non-AI companies.

At the aforesaid time, Pomel emphasized faster maturation from non-AI customers, saying non-AI lawsuit gross maturation “accelerated again this 4th to mid-20s% year-over-year,” up from 23% past 4th and 19% successful the year-ago period. Obstler echoed that the acceleration excluding AI-native customers was to the “mid-20s percent” and said results were broad-based crossed lawsuit size, spending levels, and industries.