Datadog Q3 2025 Financial Results

Datadog, Inc., a leading monitoring and security platform for cloud applications, has released its financial results for the third quarter of 2025, ending September 30. The company reported significant growth in revenue and customer base, alongside notable advancements in its product offerings and strategic initiatives.

Financial Highlights

For the third quarter of 2025, Datadog reported a revenue of $886 million, marking a 28% increase year-over-year. The company also achieved a GAAP net income per diluted share of $0.10 and a non-GAAP net income per diluted share of $0.55. Operating cash flow was robust at $251 million, with free cash flow reaching $214 million. Despite a GAAP operating loss of $6 million, the non-GAAP operating income stood at $207 million, reflecting a 23% non-GAAP operating margin.

Business and Operational Highlights

Datadog's customer base continued to expand, with approximately 4,060 customers generating $100,000 or more in annual recurring revenue (ARR), a 16% increase from the previous year. The company also reached a milestone of over 1,000 integrations on its unified platform, underscoring its leadership in observability and support for AI, cloud, and security technologies.

Additionally, Datadog was named a leader in the 2025 Gartner Magic Quadrant for Digital Experience Monitoring for the second consecutive year, highlighting the strength of its Digital Experience Monitoring (DEM) suite.

Strategic Initiatives and Corporate Developments

Datadog announced several strategic initiatives, including the expansion of support for Oracle Cloud Infrastructure (OCI) and the publication of the 2025 State of Cloud Security Report. The company also appointed Ami Vora to its Board of Directors, bringing over 20 years of experience in leading product and design teams.

Furthermore, Datadog for Government is now 'In Process' for GovRAMP High Authorization, reinforcing its commitment to delivering secure, scalable observability for the public sector.

Management's Perspective

Olivier Pomel, co-founder and CEO of Datadog, commented on the results, stating, "Datadog had a strong third quarter, with 28% year-over-year revenue growth, $251 million in operating cash flow, and $214 million in free cash flow. The Datadog R&D team is innovating rapidly to help our customers solve problems in the AI space."

Future Outlook

Looking ahead, Datadog provided guidance for the fourth quarter and full year 2025. The company expects fourth-quarter revenue to be between $912 million and $916 million, with non-GAAP operating income between $216 million and $220 million. For the full year 2025, revenue is projected to be between $3.386 billion and $3.390 billion, with non-GAAP operating income between $754 million and $758 million.

Original SEC Filing: Datadog, Inc. [ DDOG ] - 8-K - Nov. 06, 2025