Datadog Q1 Revenue Jumps 32% to $1.006B, Free Cash Flow Hits $289M
DDOG•Datadog posted Q1 revenue of $1.006B, up 32% year-over-year, delivered a 22% non-GAAP operating margin and generated $289M free cash flow. The company expanded its $100k+ ARR customer base to 4,550 (up 21%) and guided Q2 revenue of $1.07–1.08B and full-year revenue of $4.30–4.34B.
1. Q1 Financial Performance
Datadog reported first-quarter revenue of $1.006 billion, marking a 32% increase year-over-year. GAAP operating income reached $7 million while non-GAAP operating income was $223 million, representing a 22% margin; the company generated $335 million in operating cash flow and $289 million in free cash flow, ending the quarter with $4.8 billion in liquidity.
2. Business and Product Highlights
The platform grew its base of customers with annualized ARR above $100,000 to about 4,550, up 21% from a year earlier. Datadog achieved FedRAMP High certification, launched GPU Monitoring, Bits AI Security Agent and Datadog Experiments, and entered a strategic partnership with Sakana AI to accelerate enterprise AI adoption.
3. Guidance and Corporate Developments
For Q2, the company forecasts revenue between $1.07 billion and $1.08 billion and non-GAAP operating income of $225 million to $235 million. Full-year revenue is projected at $4.30–4.34 billion; the board welcomed Dominic Phillips as a new director to strengthen financial leadership.
