Datadog Q1 Revenue Tops $1B by 32% as AI Lab Deals Boost Outlook
DDOG•Datadog posted Q1 revenue of $1.01 billion, up 32% year-over-year, and non-GAAP EPS of $0.60, topping consensus of $0.51. The company signed seven- and eight-figure AI lab contracts, lifted full-year revenue guidance to $4.30–4.34 billion and raised Q2 revenue guidance above $1.07 billion.
1. Q1 Financial Performance
Datadog achieved first-ever quarterly revenue exceeding $1 billion, reaching $1.01 billion, a 32% increase year-over-year, and delivered non-GAAP earnings per share of $0.60, beating analyst projections of $0.51.
2. AI Lab Contracts
The company secured significant new agreements with AI research divisions at two leading technology firms, comprising multiple seven-figure and eight-figure contracts to monitor data-intensive AI infrastructure.
3. Guidance Raise and Outlook
Management raised full-year revenue guidance to a range of $4.30 billion–$4.34 billion and set second-quarter revenue guidance between $1.07 billion and $1.08 billion, both above prior forecasts, reflecting confidence in sustained growth.
4. Customer Growth and Cash Flow
As of quarter-end, Datadog served 4,550 customers with annual recurring revenue above $100,000, up 21% year-over-year, while generating $335 million in operating cash flow and $289 million in free cash flow.
