Datadog’s RPO Jumps 51% to $3.48B, Record New Logo Bookings Double
DDOG•Datadog’s Remaining Performance Obligations rose 51% to $3.48 billion in its latest quarter, outpacing 32% revenue growth and driven by longer-duration multi-year contracts and record new logo bookings more than doubling year-over-year. This expanding backlog diversifies customer concentration risk by securing future revenue across a broader base.
1. RPO Growth Highlights
In its latest quarter, Datadog’s Remaining Performance Obligations reached $3.48 billion, marking a 51% increase year-over-year. This growth rate outpaces the company’s 32% revenue increase over the same period, signaling accelerating demand locked in under contract.
2. Drivers of Backlog Expansion
The jump in RPO was fueled by customers signing more multi-year contracts, which extended the average contract duration. Additionally, new logo bookings more than doubled year-over-year, establishing an all-time record for new customers committing to longer-term deals.
3. Mitigating Concentration Risk
Management highlighted that expanding the contracted backlog diversifies the customer base, reducing reliance on any single large account. The swelling RPO provides a stable foundation for future revenue and lessens investor concern over concentration in top clients.
