Datadog Q4 Revenue Up 29% to $953M, Adds 603 Customers with $1M+ ARR
Datadog posted fourth-quarter revenue of $953M, up 29% year-over-year, with non-GAAP operating margin of 24% and operating cash flow of $327M. For fiscal year 2025, revenue climbed 28% to $3.43B, free cash flow reached $915M, and the platform added 603 customers with over $1M ARR, up 31%.
1. Fourth Quarter Financial Highlights
Datadog’s fourth-quarter revenue reached $953 million, a 29% increase year-over-year, with GAAP operating income of $9 million and non-GAAP operating income of $230 million, yielding a 24% margin. Operating cash flow was $327 million and free cash flow totaled $291 million.
2. Fiscal Year 2025 Results
Full-year revenue grew 28% year-over-year to $3.43 billion, with a GAAP operating loss of $44 million and non-GAAP operating income of $768 million (22% margin). Operating cash flow was $1.05 billion and free cash flow amounted to $915 million.
3. Customer Growth and Cash Reserves
As of December 31, Datadog had 603 customers with ARR over $1 million, up 31% from a year earlier, and 4,310 customers with ARR over $100,000, up 19%. Cash, cash equivalents and marketable securities stood at $4.47 billion.
4. Product Innovation and Outlook
Datadog launched Bits AI SRE Agent, Storage Management, Feature Flags and Data Observability for general availability to enhance AI-powered observability and security. The company forecasts Q1 2026 revenue of $951 million to $961 million and full-year revenue of $4.06 billion to $4.10 billion.