Datadog (DDOG) Q1 FY26 earnings call

Earnings call· Mar 2026 (Q1 FY26)· Information Technology· May 7, 2026

Source: earnings call transcript

Datadog re-accelerated on a broad base — cloud migration, platform consolidation and a new AI secular driver lifting both AI-native and non-AI cohorts simultaneously, with usage growth the strongest since 2022. The forward stance is confident and land-heavy, newly extending from AI inference into hyperscaler training workloads via GPU monitoring, while margins step down modestly as management leans into R&D and go-to-market investment.

You’re reading a preview. Opening the full call uses 1 concall credit.

DDOG operating KPIs by quarter

DDOG operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Customers	~30K We ended with about 30,000 customers, up from about 27,300 a year ago. Source: earnings call transcript	~31.4K We ended Q2 with about 31,400 customers, up from about 28,700 a year ago. Source: earnings call transcript	~32K We ended Q3 with about 32,000 customers up from about 29,200 a year ago. Source: earnings call transcript	~32.7K We ended Q4 with about 32,700 customers, up from about 30,000 a year ago. Source: earnings call transcript	~33.2K We ended Q1 with about 33,200 customers, up from about 30,500 a year ago. Source: earnings call transcript	~33.4K We ended Q2 with about 33,400 customers, up from about 31,400 a year ago. Source: earnings call transcript	—
Customers above an annual spend threshold ARR >= $100K	~3,610 We ended Q4 with about 3,610 customers with an ARR of $100,000 or more, up from about 3,190 a year ago. Source: earnings call transcript	~3,850 We ended Q2 with about 3,850 customers with an ARR of $100,000 or more, up from about 3,390 a year ago, and these customers generated about 89% of our ARR, and we generated free cash flow of $165 million with a free cash flow margin of 20%. Source: earnings call transcript	~4,060 We also ended with about 4,060 customers with an ARR of $100,000 more, up from about 3,490 a year ago. Source: earnings call transcript	~4,310 We also ended Q4 with about 4,310 customers with an ARR of $100,000 or more, up from about 3,610 a year ago. Source: earnings call transcript	~4,550 We also ended with about 4,550 customers with an ARR of $100,000 or more, up from about 3,770 a year ago. Source: earnings call transcript	~4,720 We also ended with about 4,720 customers with an ARR of $100,000 or more, up from about 3,850 a year ago. Source: earnings call transcript	—
Annual recurring revenue (ARR)	$3B+ First, our total ARR now exceeds $3 billion, a big achievement for all of us at Datadog even though we're still only just getting started. Source: earnings call transcript	—	—	—	$4B+ Our total ARR now exceeds $4 billion, and our quarterly revenue exceeded $1 billion for the first time in Q1. Source: earnings call transcript	—	—
Annual recurring revenue (ARR) Log Management	$750M+ As log management is now over $750 million in ARR and so is our third pillar as our end to end APM products together also exceed $750 million in ARR. Source: earnings call transcript	—	—	$1B+ Meanwhile, Log Management is now over $1 billion in ARR. Source: earnings call transcript	—	—	—
Customers AI Integrations	~3,500 At the end of Q4, about 3,500 customers used 1 or more Datadog AI integrations to send their data about their machine learning, AI and LLM usage. Source: earnings call transcript	4,500+ Today, over 4,500 customers use one or more Datadog AI integrations. Source: earnings call transcript	5,000+ Finally, we continue to see rising customer interest for next-gen AI observability with over 5,000 customers sending us AI data to one or more of AI integrations. Source: earnings call transcript	~5,500 Today, about 5,500 customers use one or more Datadog AI integrations to send us data about their machine learning, AI and LLM usage. Source: earnings call transcript	6,500+ We now have over 6,500 customers sending data for one or more of our AI integrations. Source: earnings call transcript	—	—
Billings	$908M Billings were $908 million, up 26% year-over-year. Source: earnings call transcript	$852M First, billings were $852 million, up 20% year-over-year, and remaining performance obligations, or RPO, was $2.43 billion, up 35% year-over-year. Source: earnings call transcript	$893M Our billings were $893 million, up 30% year-over-year. Source: earnings call transcript	—	$1.03B Billings were $1.03 billion, up 37% year-over-year. Source: earnings call transcript	$1.18B Billings were $1.18 billion, up 38% year-over-year. Source: earnings call transcript	+14.6%
Remaining performance obligation (RPO)	$2.27B Remaining performance obligations, or RPO, was $2.27 billion, up 24% year-over-year. Source: earnings call transcript	$2.43B First, billings were $852 million, up 20% year-over-year, and remaining performance obligations, or RPO, was $2.43 billion, up 35% year-over-year. Source: earnings call transcript	$2.79B Our remaining performance obligations or RPO was $2.79 billion, up 53% year-over-year, and current RPO growth was in the low 50s percentage year-over-year. Source: earnings call transcript	$3.46B Remaining performance obligations, or RPO, was $3.46 billion, up 52% year-over-year. Source: earnings call transcript	$3.48B And remaining performance obligations, or RPO, was $3.48 billion, up 51% year-over-year, with current RPO growing in the mid-40s percent year-over-year. Source: earnings call transcript	$3.47B Remaining performance obligations or RPO was $3.47 billion, up 43% year-over-year. Source: earnings call transcript	-0.3%
Net revenue retention rate	—	—	120% Our trailing 12-month net revenue retention percentage was 120% similar to last quarter and our trailing 12-month gross revenue retention percentage remain in the mid- to high 90s. Source: earnings call transcript	~120% Regarding retention metrics, our trailing 12-month net retention -- revenue retention percentage was about 120%, similar to last quarter, and our trailing 12-month gross revenue retention percentage remains in the mid- to high 90s. Source: earnings call transcript	—	—	—
Customers above an annual spend threshold AI-native spending $1M+ annually	—	—	—	19 And we are seeing these customers grow with us, including 19 customers spending $1 million or more annually with Datadog. Source: earnings call transcript	22 This group continues to diversify and grow, including 22 customers spending more than $1 million annually and 5 spending more than $10 million annually. Source: earnings call transcript	31 In Q2, this includes 31 customers spending more than $1 million annually, of which 8 customers spent more than $10 million annually. Source: earnings call transcript	+40.9%
Customers above an annual spend threshold AI-native spending $10M+ annually	—	—	—	—	5 This group continues to diversify and grow, including 22 customers spending more than $1 million annually and 5 spending more than $10 million annually. Source: earnings call transcript	8 In Q2, this includes 31 customers spending more than $1 million annually, of which 8 customers spent more than $10 million annually. Source: earnings call transcript	+60%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.