Latest news with #Eppo
Yahoo
16-05-2025
- Business
- Yahoo
1 Artificial Intelligence (AI) Stock to Buy Hand Over Fist Before It Soars Higher
Datadog stock has rallied impressively in the past month or so, and it looks like it will continue higher thanks to growing AI use in the cloud. The company is investing aggressively in staffing and research to capitalize on the multibillion-dollar end-market opportunity it is sitting on. Earnings growth is set to improve, and that could lead to more upside in the market. 10 stocks we like better than Datadog › Datadog (NASDAQ: DDOG), a cloud observability and security solutions provider, had a torrid run on the stock market in the first three months of the year. It then hit a 52-week low on April 7, but the stock has made a remarkable comeback since then. Shares have shot up 28% from their 52-week low, and the latest quarterly results show that it could continue soaring thanks to the demand for its cloud monitoring and security solutions being fueled by artificial intelligence (AI). Let's see why this cloud computing stock seems capable of sustaining its rally. Datadog released its first-quarter 2025 results on May 6, reporting a 25% year-over-year increase in revenue along with a 5% increase in its bottom line. Revenue and earnings were better than what Wall Street was expecting, but more importantly, the company's improved full-year guidance boosted investor confidence in the stock. It is now expecting full-year revenue to grow by 20% to around $3.23 billion, higher than the consensus expectation of $3.2 billion. Management attributes the improved guidance to the growing interest in its AI-focused cloud observability and security tools. CEO Olivier Pomel said on the latest earnings conference call: "We continue to see rising customer for next-gen AI observability and analysis. At the end of Q1, more than 4,000 customers used one or more Datadog AI integrations, and this number has doubled year over year." Pomel added that the number of companies using his business' observability tool to manage large language models has doubled in the past six months. Datadog also says that AI-native customers boosted the company's year-over-year growth by 6 percentage points last quarter, which was three times the growth seen in the year-ago period. Looking to shore up its AI capabilities further, management has acquired Eppo, a company specializing in helping companies compare multiple AI models simultaneously before building and deploying AI applications that could generate substantial value. This move could improve the adoption of Datadog's AI products. And that could help the company capture a bigger share of the massive cloud observability and security market, while also encouraging existing customers to spend more money. The customer base increased by almost 9% last quarter to 30,500, which means that a large portion of it has yet to adopt its AI tools. The number of customers with annual recurring revenue (ARR) of more than $100,000 increased at a faster pace: almost 13% year over year in the first quarter. This suggests that the company is now winning bigger contracts as its customers use more of its products. For instance, 13% of customers used eight or more of its products in the first quarter, up by 3 percentage points from last year. Those using six or more products increased by 5 percentage points year over year. This increased adoption is likely to continue improving in the long run thanks to AI, allowing the company to capture a bigger share of the cloud security and observability market, which is currently worth $79 billion and is set to grow by double digits over the next three years. Datadog is forecasting its 2025 earnings to land at $1.69 per share at the midpoint of its guidance range, lower than its 2024 adjusted net income of $1.82 per share. The drop in earnings this year can be attributed to the company's higher hosting costs due to the growth in demand from some of its largest customers. Datadog has been shoring up its sales force and research and development (R&D) team. The head count for the former increased by 25% year over year in the first quarter, while the latter's head count was up by 30%. As a result, its adjusted operating margin fell by 5 percentage points year over year in the first quarter to 22%. However, the company expects its operating margin to exceed 25% in the long run, which should ideally lead to an improvement in the bottom line. This explains why analysts are expecting its earnings growth to pick up. Moreover, the stock's one-year median price target of $135, according to 46 analysts covering the company, would be a 19% jump from current levels. But this cloud stock could do better than that since the growing adoption of its services is thanks to a new catalyst in the form of AI. And that's why investors should consider buying Datadog before it soars higher. Before you buy stock in Datadog, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Datadog wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy. 1 Artificial Intelligence (AI) Stock to Buy Hand Over Fist Before It Soars Higher was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arabian Post
08-05-2025
- Business
- Arabian Post
Datadog Strengthens AI Capabilities with Eppo Acquisition
Datadog, a prominent provider of cloud application monitoring and security solutions, has acquired Eppo, a San Francisco-based startup specialising in feature flagging and experimentation platforms. This strategic move aims to enhance Datadog's product analytics and AI-driven experimentation offerings. The acquisition aligns with Datadog's broader strategy to bolster its AI and analytics capabilities. The company has experienced a 25% year-over-year increase in first-quarter revenue, reaching $761.6 million. This growth is attributed to the rising demand for AI-driven cloud security solutions and the adoption of new products like App Builder and On-Call. Datadog has also raised its full-year 2025 revenue forecast to between $3.22 billion and $3.24 billion, surpassing previous estimates. Eppo, founded in 2021 by CEO Chetan Sharma, has developed a platform that enables companies to conduct randomized controlled experiments. The platform integrates with data warehouses, cloud services, and AI products, allowing for efficient and rigorous experimentation. Eppo's clients include Twitch, DraftKings, Perplexity, Coinbase, Zalando, Delivery Hero, SurveyMonkey, and Fanatics. The acquisition is expected to provide Datadog with advanced experimentation tools, enhancing its ability to offer AI-powered personalization and feature flagging. This will enable clients to build products more efficiently and reduce the risks associated with new feature rollouts. Eppo's platform is designed to support high experiment velocity, allowing companies to run trustworthy experiments faster. By building on Snowflake, Eppo delivers analyst efficiency and data security benefits, enabling customers to upgrade from fragmented and unreliable experimentation workflows to a metrics-first setup. The integration of Eppo's capabilities into Datadog's platform is anticipated to provide a more seamless workflow for users. This will allow teams to manage their experimentation lifecycle in one place, operating collaboratively and demonstrating return on investment more effectively. Datadog's acquisition of Eppo reflects a growing trend in the industry, where companies are seeking to enhance their AI and analytics offerings through strategic acquisitions. This move positions Datadog to better serve its clients by providing more comprehensive tools for monitoring, security, and experimentation in cloud environments. The financial details of the acquisition have not been disclosed. However, the move is seen as a significant step in Datadog's efforts to expand its product offerings and maintain its competitive edge in the rapidly evolving cloud services market. Eppo's team, which includes former employees from Airbnb, LinkedIn, Uber, and Snowflake, brings a wealth of experience to Datadog. This acquisition is expected to accelerate Datadog's innovation in AI and analytics, providing clients with more robust tools to navigate and secure modern cloud environments.
Yahoo
06-05-2025
- Business
- Yahoo
Datadog Sees 25% Q1 Growth, Hikes Guidance
Datadog (NASDAQ:DDOG) raises its full-year outlook to $3.215 billion$3.235 billion in revenue, driven by 25% Q1 growth and accelerating AI-related product adoption. In Q1, the cloud observability specialist reported $762 million in revenue, topping guidance and marking a 25% year-over-year increase (3% sequentially), according to CEO Olivier Pomel. Customer count climbed to 30,500 from 28,000 a year ago, with 3,770 clients now generating at least $100,000 in ARR88% of total ARR. The Flex Logs product hit $50 million ARR in just six quarters, the fastest ramp in Datadog's history, while Database Monitoring nears the same milestone with 60% year-over-year growth and over 5,000 customers. Recent acquisitions of Eppo and Metaplane bolster feature management and data observability suites. On profitability, CFO David Obstler highlighted $244 million of free cash flow (32% margin) and an 80.3% gross margin, modestly down from 81.7% last quarter as cloud hosting costs rose. Management plans optimizations to offset those pressures. Net revenue retention stayed in the 110% range, while gross retention held steady in the mid-to-high 90s. Billings hit $748 million, up 21% year-over-year. For Q2, Datadog sees revenue between $787 million and $791 million (22%23% growth) with non-GAAP EPS of $0.40$0.42. Full-year guidance now sits at $3.215 billion$3.235 billion in revenue (up $40 million) with operating income of $625 million$645 million and non-GAAP EPS of $1.67$1.71. Gross margins are expected to stay within historic ranges despite short-term headwinds. In Q&A, analysts pressed on AI-generated code's implicationsPomel noted that increased AI-written code amplifies the need for observability to validate and monitor dynamic applications. On cloud migration trends, Datadog sees steady growth aligned with hyperscaler reports, and CFO Obstler assured that expanded sales and marketing investments are driving productivity on par with previous cohorts. Why it matters: The raised guidance and standout product ramps underscore Datadog's ability to translate AI and migration tailwinds into sustained top-line and cash-flow growth. Investors will look to Q2 earnings in late July for confirmation that new AI offerings and bolt-on acquisitions continue fueling momentum. This article first appeared on GuruFocus.
Time of India
06-05-2025
- Business
- Time of India
Datadog lifts annual revenue forecast on AI-driven cloud security demand
Live Events Cloud security firm Datadog raised its annual revenue forecast and beat the estimate for quarterly sales on Tuesday, thanks to growth in large customers and AI-driven company has benefited significantly from the increased adoption of artificial intelligence technologies, which has driven strong demand for its cloud monitoring and security platform On Monday, Datadog acquired Eppo, a feature flagging and experimentation platform, to expand its AI and product analytics offerings, aiming to help customers build products faster and with less risk."We are innovating rapidly across the Datadog platform, to help customers observe, secure, and act to solve mission-critical business problems in their modern, cloud environments," CEO Olivier Pomel newer products, such as App Builder and On-Call, are outperforming, and its security monitoring is seeing significant customer interest, analysts have company now expects full-year 2025 revenue to be between $3.22 billion and $3.24 billion, compared with its prior forecast of between $3.18 billion and $3.20 billion. Analysts on average expect $3.20 billion in annual revenue, according to data compiled by also forecast second-quarter revenue above revenue in the first quarter was up 25% from a year earlier to $761.6 million, compared with analysts' estimate of $741.5 an adjusted basis, the company earned 46 cents per share compared with the estimate of 43 cents per the end of the first quarter, Datadog had about 3,770 customers with annual recurring revenue of $100,000 or more, an increase of 13% from a year earlier.
CNA
06-05-2025
- Business
- CNA
Datadog lifts annual revenue forecast on AI-driven cloud security demand
Cloud security firm Datadog raised its annual revenue forecast and beat the estimate for quarterly sales on Tuesday, thanks to growth in large customers and AI-driven workloads. The company has benefited significantly from the increased adoption of artificial intelligence technologies, which has driven strong demand for its cloud monitoring and security platform. On Monday, Datadog acquired Eppo, a feature flagging and experimentation platform, to expand its AI and product analytics offerings, aiming to help customers build products faster and with less risk. "We are innovating rapidly across the Datadog platform, to help customers observe, secure, and act to solve mission-critical business problems in their modern, cloud environments," CEO Olivier Pomel said. Datadog's newer products, such as App Builder and On-Call, are outperforming, and its security monitoring is seeing significant customer interest, analysts have said. The company now expects full-year 2025 revenue to be between $3.22 billion and $3.24 billion, compared with its prior forecast of between $3.18 billion and $3.20 billion. Analysts on average expect $3.20 billion in annual revenue, according to data compiled by LSEG. It also forecast second-quarter revenue above estimates. Total revenue in the first quarter was up 25 per cent from a year earlier to $761.6 million, compared with analysts' estimate of $741.5 million. On an adjusted basis, the company earned 46 cents per share compared with the estimate of 43 cents per share. At the end of the first quarter, Datadog had about 3,770 customers with annual recurring revenue of $100,000 or more, an increase of 13 per cent from a year earlier.
