Datadog Inc (NASDAQ:DDOG) shares jumped 16% on Tuesday after the cloud monitoring and security company reported fourth-quarter results that beat Wall Street expectations.
The New York-based company posted revenue of $953 million for the quarter, up 29% from a year earlier and above analysts’ estimate of $917 million. Non-GAAP earnings per share came in at $0.59, topping the expected $0.55.
Datadog said the number of customers spending $1 million or more annually grew 30% to 603, while those with annual spending above $100,000 rose 19% to 4,310.
AI-powered tools, including the company’s Site Reliability Engineering agent, drew more than 2,000 trials and paying users, and Datadog’s integrations reached 5,500 customers.
Looking ahead, Datadog provided first-quarter guidance that topped estimates, though full-year revenue projections of $4.06 billion to $4.1 billion came in slightly below the consensus forecast.
"We are pleased with our strong execution in fiscal year 2025, with 28% year-over-year revenue growth, $1,050 million in operating cash flow, and $915 million in free cash flow," said Olivier Pomel, CEO of Datadog.
“Looking forward to 2026, we are excited about our plans to deliver more AI-powered innovation and help our customers with their complex challenges in modern Observability, Security, Software Delivery, Service Management, and Product Analytics."