Datadog 2025 revenue forecast has been officially raised, driven by a strong first-quarter performance and surging demand for artificial intelligence and cloud-based security solutions. The company, known for its cloud monitoring and analytics tools, now expects annual revenue to reach between $3.22 billion and $3.24 billion—up from its previous guidance of $3.18 billion to $3.20 billion. This boost in outlook reflects not only solid sales but growing interest in Datadog’s expanding suite of AI-enabled products.
In Q1, Datadog posted $761.6 million in revenue, marking a 25% increase compared to the same period last year. The results easily beat Wall Street estimates, which stood at $741.5 million. The company also reported adjusted earnings per share of 46 cents, exceeding analyst expectations of 43 cents. Notably, Datadog saw a 13% year-over-year increase in high-spending customers, with more than 3,770 clients now contributing over $100,000 in annual recurring revenue—a strong signal of long-term enterprise commitment.
CEO Olivier Pomel attributed the growth to new feature rollouts, such as App Builder and On-Call, as well as steady demand for advanced security capabilities. Datadog is also deepening its investment in artificial intelligence through strategic moves like the recent acquisition of Eppo, a feature flagging and experimentation platform. This acquisition strengthens Datadog’s analytics infrastructure, enabling customers to deploy AI-powered experiments faster and more securely.
As AI continues to reshape enterprise operations, Datadog is positioning itself at the center of that transformation. The company’s focus on scalable, secure, and integrated tools is resonating with IT leaders navigating complex cloud environments. This improved forecast is more than a numbers bump—it’s a sign of confidence in Datadog’s vision and its growing role in the future of enterprise tech.
News Source: finance.yahoo.com
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