Datadog Q2 rev. up 28% YoY to $827 mln, unveils over 125 products.

• Datadog Q2 revenue up 28% YoY to $827mln • 3,850 $100k+ ARR customers, up from 3,390 YoY • Introduced 125+ new products and features at DASH 2025 • Generated $200mln in operating cash flow and $165mln in free cash flow • Robust growth in larger customers driven by Datadog's monitoring and security platform.

Datadog Inc. (NASDAQ: DDOG) reported its second-quarter 2025 financial results, demonstrating significant growth and innovation in its observability and security platform for cloud applications. The company's revenue reached $827 million, representing a 28% year-over-year (YoY) increase, according to the latest earnings release [2].

The company's customer base expanded, with approximately 3,850 customers having an annual recurring revenue (ARR) of $100,000 or more, a 14% increase from the previous year [2]. This robust growth in larger customers underscores the platform's stickiness and enterprise value proposition.

Datadog's financial performance was bolstered by strong operating cash flow, generating $200 million, and free cash flow of $165 million [2]. The company's balance sheet remains exceptionally strong, with $3.9 billion in cash and marketable securities, providing substantial runway for continued research and development, potential acquisitions, and weathering any macroeconomic uncertainties.

At its DASH 2025 user conference, Datadog unveiled over 125 new products and features, further solidifying its position in the cloud observability and security markets. These innovations include three new AI agents—Bits AI SRE, Dev Agent, and Security Analyst—that automate investigations and code fixes across operations, development, and security teams [2].

The company's forward-looking guidance for the third quarter and full-year 2025 also reflects its maturation into a leading enterprise software provider. Datadog expects revenue between $847-851 million for Q3 2025 and full-year 2025 revenue is projected to reach $3.312-3.322 billion [2].

Datadog's strong Q2 results, coupled with its aggressive AI-focused product innovation, position it as a critical infrastructure provider for the AI revolution. The company's expansion into AI-specific tooling, with the introduction of three specialized AI agents, and its launch of AI Agent Monitoring, LLM Experiments, and AI Agents Console, create a comprehensive governance framework for organizations deploying AI [2].

In conclusion, Datadog's Q2 2025 results highlight the company's continued growth and innovation in the cloud observability and security markets. The company's strong financial performance and forward-looking guidance provide reassurance to investors that Datadog can navigate a more measured cloud spending environment while continuing its rapid pace of innovation and growth.

References:
[1] https://www.tradingview.com/news/gurufocus:e1dbb696a094b:0-datadog-q2-preview-can-ai-upside-offset-slower-cloud-growth/
[2] https://www.stocktitan.net/news/DDOG/datadog-announces-second-quarter-2025-financial-8s21xhxj5nv1.html