Datadog Q2 Earnings Beat Expectations, Raises Guidance

Datadog's Q2 earnings beat expectations with adjusted EPS of $0.46 and revenue of $826.8 million, a 28% YoY increase. The company raised its full-year guidance, expecting revenue of $3.312-$3.322 billion and adjusted EPS of $1.80-$1.83. Shares surged 10.8% following the announcement.

Datadog, Inc. (NASDAQ: DDOG) reported strong second-quarter (Q2) earnings, with adjusted earnings per share (EPS) of $0.46, surpassing analyst expectations of $0.41. The company's revenue jumped 28% year-over-year (YoY) to $826.8 million, significantly outpacing the $790.9 million analysts had predicted [1]. The robust performance was driven by growth in larger customers, with approximately 3,850 customers generating annual recurring revenue (ARR) of $100,000 or more, up 14% from about 3,390 a year ago [1, 2].

Olivier Pomel, co-founder and CEO of Datadog, commented, "Datadog had a strong second quarter, with 28% year-over-year revenue growth, $200 million in operating cash flow, and $165 million in free cash flow" [1]. The company also raised its full-year 2025 guidance, expecting revenue of $3.312-$3.322 billion and adjusted EPS of $1.80-$1.83, exceeding the consensus of $3.24 billion and $1.70, respectively [1].

Datadog's shares surged 10.8% following the announcement, reflecting investor confidence in the company's strong performance and growth prospects [1]. The company's stock price reached its highest level since going public in 2016 [1].

During the quarter, Datadog unveiled more than 125 new products and features at its DASH 2025 user conference, including three new AI agents and enhanced security offerings [1]. The company also joined the S&P 500 Index, reflecting its growing market presence [1].

References:
[1] https://www.investing.com/news/earnings/datadog-shares-soar-as-q2-earnings-beats-expectations-guidance-raised-4176285
[2] https://www.globenewswire.com/news-release/2025/08/07/3129085/0/en/Datadog-Announces-Second-Quarter-2025-Financial-Results.html