One software company has developed a way to help break down the common communication and operations challenges faced in many organizations. Datadog is a monitoring and analytics platform for developers, IT, operations teams and business users in the cloud age that uses end-to-end monitoring, logs, and metrics, to enable businesses to obtain critical information on applications, infrastructure, and third-party services.
Datadog provides customers with a comprehensive view of their various data sources and platforms that can then be shared across different functional areas to optimize costs, boost performance and cybersecurity, and ensure efficient operations.
With the proliferation of cloud adoption, Datadog has grown rapidly and vastly expanded its product offering to provide customers with a full-stack technology monitoring solution, thanks to a global team of over 3000 staff, led by industry veterans and its original founders, Olivier Pomel and Alexis Lê-Quôc.
The highly scalable, cloud-based Datadog platform supports just about any industry, with the company assisting customers across a wide range of sectors. Datadog gives organizations a holistic picture of their infrastructure health, regardless of the structure of their multi/hybrid cloud environment.
Focusing on “greenfield opportunities” through its land-and-expand model, Datadog makes it easy for customers to start small, and at minimal cost, to build an initial relationship. While its usage-based pricing grows commensurately with customer requirements, taking advantage of the accelerating migration of workloads to the cloud. This model has seen Datadog grow its enterprise base rapidly with many customers adopting multiple products and hitting milestones on annual recurring revenue, all while maintaining consistently high revenue retention rates.
While Datadog is still early on in its lifecycle, the revenue growth story is compelling, as the company is topped $1 billion in revenue for 2021, as digital transformation and cloud migration continue to be transformational forces for companies of all sizes.
Despite trading at a high sales multiple and competing against several well-established peers, Datadog’s platform has proven itself a standout. Furthermore, its ongoing commitment to R&D spending demonstrates that platform improvements should continue to add value and extend the company’s solid performance to date.