Form 8-K

8-K — Datadog, Inc.

Accession: 0001628280-26-031677

Filed: 2026-05-07

Period: 2026-05-07

CIK: 0001561550

SIC: 7372 (SERVICES-PREPACKAGED SOFTWARE)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — ddog-20260507.htm (Primary)

EX-99.1 (ex-991x20260331x8k.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: ddog-20260507.htm · Sequence: 1

ddog-20260507

0001561550false00015615502026-05-072026-05-07

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 7, 2026

Datadog, Inc.

(Exact name of Registrant as Specified in Its Charter)

Nevada

001-39051

27-2825503

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

620 8th Avenue, 45th Floor

New York, New York 10018

(Address of Principal Executive Offices, including zip code)

(866) 329-4466

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Class A Common Stock, par value $0.00001 per share

DDOG

The Nasdaq Stock Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On May 7, 2026, Datadog, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information contained in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.

Description

99.1

Press Release dated May 7, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Datadog, Inc.

Date: May 7, 2026

By:

/s/ David Obstler

David Obstler

Chief Financial Officer

EX-99.1

Filename: ex-991x20260331x8k.htm · Sequence: 2

Document

Exhibit 99.1

Datadog Announces First Quarter 2026 Financial Results

May 7, 2026

First quarter revenue grew 32% year-over-year to $1,006 million

Robust growth of larger customers, with about 4,550 $100k+ ARR customers, up from about 3,770 a year ago

Launched MCP Server, Bits AI Security Agent, GPU Monitoring, and Experiments for general availability

NEW YORK-- Datadog, Inc. (NASDAQ:DDOG), the leading AI-powered observability and security platform, today announced financial results for its first quarter ended March 31, 2026.

"Datadog executed to a strong quarter, with 32% year-over-year revenue growth, $335 million in operating cash flow, and $289 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog. "We are helping customers of all sizes and industries deploy modern, cloud-based, AI-enabled solutions."

Pomel added, "We're using AI to build rapidly across the Datadog platform, and are excited to showcase our latest innovations at our DASH user conference in June."

First Quarter 2026 Financial Highlights:

•Revenue was $1,006 million, an increase of 32% year-over-year.

•GAAP operating income was $7 million; GAAP operating margin was 1%.

•Non-GAAP operating income was $223 million; non-GAAP operating margin was 22%.

•GAAP net income per diluted share was $0.15; non-GAAP net income per diluted share was $0.60.

•Operating cash flow was $335 million, with free cash flow of $289 million.

•Cash, cash equivalents, and marketable securities were $4.8 billion as of March 31, 2026.

First Quarter & Recent Business Highlights:

•As of March 31, 2026, we had about 4,550 customers with ARR of $100,000 or more, an increase of 21% from about 3,770 as of March 31, 2025.

•Achieved FedRAMP High certification for Datadog for Government, one of the federal government’s most stringent cloud security and compliance standards—reinforcing Datadog’s commitment to serving

highly sensitive federal environments and enabling U.S. government agencies and contractors to adopt modern observability for secure workloads.

•Launched GPU Monitoring for generally availability, to help businesses optimize spend and performance as they scale AI projects—providing unified visibility across GPU fleet health, cost, and performance linked directly to the teams and workloads consuming those resources, enabling faster troubleshooting and cost savings.

•Released the State of AI Engineering 2026 Report, which found that operational complexity—not model intelligence—is becoming the primary barrier to reliable AI at scale, with nearly 5% of AI model requests failing in production and close to 60% of those failures caused by capacity limits.

•Launched Datadog Experiments, which embeds experimentation into observability to help teams design, measure, and optimize product A/B tests directly within the Datadog platform—pairing best-in-class statistical methods with real-time observability guardrails so companies can ship with confidence.

•Delivered Bits AI Security Analyst to general availability as part of Datadog’s Cloud SIEM, enabling security teams to reduce threat investigation time by up to 98% by autonomously analyzing alerts with the depth and expertise of a senior SOC analyst at machine scale and speed.

•Announced the general availability of Datadog's MCP Server, which provides AI coding agents and IDEs with secure, real-time access to unified observability data—enabling faster debugging, safer automation, and governed AI operations at scale.

•Appointed Dominic Phillips to Datadog’s Board of Directors. Phillips brings more than two decades of financial leadership in the technology sector, including his current role as Executive Vice President and Chief Financial Officer at Samsara and previous positions at ServiceNow and Morgan Stanley.

•Published the 2026 State of DevSecOps Report, which found that 87% of organizations are running software with known, exploitable vulnerabilities—highlighting a broader industry shift as security risk increasingly moves upstream into the software supply chain.

•Entered into a strategic partnership with Sakana AI, a next-generation AI research lab, to collaborate on research, product innovation, and go-to-market initiatives focused on enterprise AI adoption—initially supporting large enterprise customers in Japan before expanding globally.

•Opened registration for DASH 2026, Datadog’s ninth annual global conference for builders, engineers, security leaders, and technology decision-makers exploring how observability and security are evolving in an era of increasingly complex, AI-driven systems. The conference will take place June 9-10 at the North Javits Center in New York City.

Second Quarter and Full Year 2026 Outlook:

Based on information as of today, May 7, 2026, Datadog is providing the following guidance:

•Second Quarter 2026 Outlook:

◦Revenue between $1.07 billion and $1.08 billion.

◦Non-GAAP operating income between $225 million and $235 million.

◦Non-GAAP net income per share between $0.57 and $0.59, assuming approximately 369 million weighted average diluted shares outstanding.

•Full Year 2026 Outlook:

◦Revenue between $4.30 billion and $4.34 billion.

◦Non-GAAP operating income between $940 million and $980 million.

◦Non-GAAP net income per share between $2.36 and $2.44, assuming approximately 372 million weighted average diluted shares outstanding.

Datadog has not reconciled its expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog’s results computed in accordance with GAAP.

Conference Call Details:

•What: Datadog financial results for the first quarter of 2026 and outlook for the second quarter and the full year 2026

•When: May 7, 2026 at 8:00 A.M. Eastern Time (5:00 A.M. Pacific Time)

•Dial in: To access the call in the U.S., please register here. Callers are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.

•Webcast: https://investors.datadoghq.com (live and replay)

•Replay: A replay of the call will be archived on the investor relations website

About Datadog

Datadog is the leading observability and security platform for the AI era, providing businesses with unified visibility across the technology stack to manage complexity at scale. It brings applications, infrastructure, data, models, and security into one place, using AI to detect and resolve issues before they impact customers.

Trusted globally by Fortune 500 companies and high-growth AI leaders, Datadog enables businesses to move faster with clarity and confidence.

Forward-Looking Statements

This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Datadog’s strategy, product and platform capabilities, the growth in and ability to capitalize on long-term market opportunities including the pace and scope of cloud migration, digital transformation and AI deployment, gross margins, operating margins including with respect to sales and marketing, research and development expenses, net interest and other income, cash taxes, capital expenditures and capitalized software, and Datadog’s future financial performance, including its outlook for the second quarter and the full year 2026 and related notes and assumptions. These forward-looking statements are based on Datadog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Datadog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to (1) our recent rapid growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our dependence on existing customers purchasing additional subscriptions and products from us and renewing their subscriptions; (5) our ability to attract new customers; (6) our ability to effectively develop and expand our sales and marketing capabilities; (7) risk of a security breach; (8) risk of interruptions or performance problems associated with our products and platform capabilities; (9) our ability to adapt and respond to rapidly changing technology or customer needs; (10) the competitive markets in which we participate; (11) risks associated with successfully managing our growth; (12) risks associated with changing laws, regulations, and contractual obligations related to data privacy and security and (13) general market, political, economic, and business conditions including concerns about trade policies, tariffs, reduced economic growth and associated decreases in information technology spending. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (SEC), including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 18, 2026. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and other filings and reports that we may file from time to time with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our

beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

About Non-GAAP Financial Measures

Datadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, free cash flow and free cash flow margin. Datadog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Datadog’s financial performance. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Datadog’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Datadog’s reported financial results.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Datadog defines non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) employer payroll taxes on employee stock transactions; (4) M&A transaction costs; (5) amortization of issuance costs; and (6) an assumed provision for income taxes based on our long-term projected tax rate. Non-GAAP financial measures prior to April 1, 2025 have not been adjusted for M&A transaction costs, as such costs were not material to our results of operations in such prior periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in Datadog's geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate. Datadog defines free cash flow as net cash provided by operating activities, minus capital expenditures and minus capitalized software development costs,

if any. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

Management believes these non-GAAP financial measures are useful to investors and others in assessing Datadog’s operating performance due to the following factors:

Stock-based compensation. Datadog utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of acquired intangibles. Datadog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.

Employer payroll taxes on employee stock transactions. Datadog excludes employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of Datadog’s common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of Datadog’s business.

M&A transaction costs. Datadog views acquisition-related expenses, such as transaction costs, as costs that are not necessarily reflective of operational performance during a period. In particular, Datadog believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

Amortization of issuance costs. In June 2020 and December 2024, Datadog issued $747.5 million of 0.125% convertible senior notes due 2025 and $1.0 billion of 0% convertible senior notes due 2029, respectively. Debt issuance costs, which reduce the carrying value of the convertible debt instrument, are amortized as interest expense over the term. The expense for the amortization of debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

Additionally, Datadog’s management believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. Free cash flow represents net cash provided by operating activities, reduced by capital expenditures and capitalized software development costs, if any. The reduction of capital expenditures and amounts capitalized for software development facilitates comparisons of Datadog's liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of our liquidity.

Operating Metrics

Datadog’s number of customers with ARR of $100,000 or more is based on the ARR of each customer, as of the last month of the quarter.

We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. Users of our free trials or tier are not included in our customer count. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.

We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts, additional usage, usage from subscriptions for a committed contractual amount of usage that is delivered as used, and monthly subscriptions. ARR and MRR should be viewed independently of revenue, and do not represent our revenue under GAAP on a monthly or annualized basis, as they are operating metrics that can be impacted by contract start and end dates and renewal rates. ARR and MRR are not intended to be replacements or forecasts of revenue.

Datadog, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share data; unaudited)

Three Months Ended

March 31,

2026

2025

Revenue

1,006,426

761,553

Cost of revenue (1)(2)(3)

209,228

157,628

Gross profit

797,198

603,925

Operating expenses:

Research and development (1)(3)

435,298

341,061

Sales and marketing (1)(2)(3)

279,823

214,291

General and administrative (1)(3)(4)

74,750

60,993

Total operating expenses

789,871

616,345

Operating income (loss)

7,327

(12,420)

Other income:

Interest expense (5)

(3,119)

(2,963)

Interest income and other income, net

54,722

47,179

Other income, net

51,603

44,216

Income before provision for income taxes

58,930

31,796

Provision for income taxes

6,356

7,154

Net income

52,574

24,642

Net income per share - basic

0.15

0.07

Net income per share - diluted

0.15

0.07

Weighted average shares used in calculating net income per share:

Basic

353,272

343,097

Diluted

364,731

363,078

(1) Includes stock-based compensation expense as follows:

Cost of revenue

8,558

6,651

Research and development

123,671

105,735

Sales and marketing

42,298

34,125

General and administrative

22,314

17,754

Total

196,841

164,265

(2) Includes amortization of acquired intangibles as follows:

Cost of revenue

1,282

894

Sales and marketing

358

203

Total

1,640

1,097

(3) Includes employer payroll taxes on employee stock transactions as follows:

Cost of revenue

188

186

Research and development

11,276

9,582

Sales and marketing

1,895

1,570

General and administrative

3,635

2,225

Total

16,994

13,563

(4) Includes M&A transaction costs as follows:

General and administrative

695

—

Total

695

—

(5) Includes amortization of issuance costs as follows:

Interest expense

1,047

1,819

Total

1,047

1,819

Datadog, Inc.

Condensed Consolidated Balance Sheets

(In thousands; unaudited)

March 31,

2026

December 31,

2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

426,360

401,305

Marketable securities

4,332,257

4,073,531

Accounts receivable, net of allowance for credit losses of $21,188 and $19,292 as of March 31, 2026 and December 31, 2025, respectively

680,434

741,262

Deferred contract costs, current

81,687

76,022

Prepaid expenses and other current assets

104,468

90,160

Total current assets

5,625,206

5,382,280

Property and equipment, net

378,944

338,093

Operating lease assets

213,260

214,674

Goodwill

540,543

530,568

Intangible assets, net

14,929

14,968

Deferred contract costs, non-current

136,264

126,708

Other assets

42,866

36,553

TOTAL ASSETS

6,952,012

6,643,844

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

174,801

148,791

Accrued expenses and other current liabilities

208,549

209,595

Operating lease liabilities, current

41,401

39,369

Deferred revenue, current

1,231,152

1,193,646

Total current liabilities

1,655,903

1,591,401

Operating lease liabilities, non-current

259,155

256,187

Convertible senior notes, net, non-current

984,496

983,449

Deferred revenue, non-current

50,918

68,711

Other liabilities

13,318

11,890

Total liabilities

2,963,790

2,911,638

STOCKHOLDERS' EQUITY:

Common stock

Additional paid-in capital

3,801,272

3,579,010

Accumulated other comprehensive (loss) income

(3,416)

15,404

Retained earnings

190,363

137,789

Total stockholders’ equity

3,988,222

3,732,206

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

6,952,012

6,643,844

Datadog, Inc.

Condensed Consolidated Statements of Cash Flow

(In thousands; unaudited)

Three Months Ended

March 31,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

52,574

24,642

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

17,923

11,255

Accretion of discounts on marketable securities

(11,880)

(10,370)

Amortization of issuance costs

1,047

1,819

Amortization of deferred contract costs

20,325

14,853

Stock-based compensation, net of amounts capitalized

196,841

164,265

Non-cash lease expense

9,073

8,389

Allowance for credit losses on accounts receivable

4,953

4,520

Loss on disposal of property and equipment

1,134

(145)

Changes in operating assets and liabilities:

Accounts receivable, net

55,874

104,227

Deferred contract costs

(35,545)

(21,519)

Prepaid expenses and other current assets

(14,445)

(10,263)

Other assets

(522)

(1,217)

Accounts payable

21,500

(10,712)

Accrued expenses and other liabilities

(3,877)

5,648

Deferred revenue

19,647

(13,851)

Net cash provided by operating activities

334,622

271,541

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of marketable securities

(1,304,965)

(970,302)

Maturities of marketable securities

1,046,415

555,938

Proceeds from sale of marketable securities

(57)

(76)

Purchases of property and equipment

(11,358)

(8,748)

Capitalized software development costs

(34,173)

(18,402)

Cash paid for acquisition of businesses; net of cash acquired

(10,660)

(1,818)

Net cash used in investing activities

(314,798)

(443,408)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from exercise of stock options

9,711

1,673

Repayments of 2025 Convertible Senior Notes

—

(20)

Net cash provided by financing activities

9,711

1,653

Effect of exchange rate changes on cash and cash equivalents

(4,480)

3,085

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

25,055

(167,129)

CASH AND CASH EQUIVALENTS—Beginning of period

401,305

1,246,983

CASH AND CASH EQUIVALENTS—End of period

426,360

1,079,854

Datadog, Inc.

Reconciliation from GAAP to Non-GAAP Results

(In thousands; unaudited)

Three Months Ended

March 31,

2026

2025

Reconciliation of gross profit and gross margin

GAAP gross profit

797,198

603,925

Plus: Stock-based compensation expense

8,558

6,651

Plus: Amortization of acquired intangibles

1,282

894

Plus: Employer payroll taxes on employee stock transactions

188

186

Non-GAAP gross profit

807,226

611,656

GAAP gross margin

79%

Non-GAAP gross margin

80%

Reconciliation of operating expenses

GAAP research and development

435,298

341,061

Less: Stock-based compensation expense

(123,671)

(105,735)

Less: Employer payroll taxes on employee stock transactions

(11,276)

(9,582)

Non-GAAP research and development

300,351

225,744

GAAP sales and marketing

279,823

214,291

Less: Stock-based compensation expense

(42,298)

(34,125)

Less: Amortization of acquired intangibles

(358)

(203)

Less: Employer payroll taxes on employee stock transactions

(1,895)

(1,570)

Non-GAAP sales and marketing

235,272

178,393

GAAP general and administrative

74,750

60,993

Less: Stock-based compensation expense

(22,314)

(17,754)

Less: Employer payroll taxes on employee stock transactions

(3,635)

(2,225)

Less: M&A transaction costs (1)

(695)

—

Non-GAAP general and administrative

48,106

41,014

Reconciliation of operating (loss) income and operating margin

GAAP operating income (loss)

7,327

(12,420)

Plus: Stock-based compensation expense

196,841

164,265

Plus: Amortization of acquired intangibles

1,640

1,097

Plus: Employer payroll taxes on employee stock transactions

16,994

13,563

Plus: M&A transaction costs (1)

695

—

Non-GAAP operating income

223,497

166,505

GAAP operating margin

(2)%

Non-GAAP operating margin

22%

1)The three months ended March 31, 2026 were adjusted for M&A transaction costs, and these adjustments were applied prospectively, as these costs were not material to the consolidated results of operations in the prior periods.

Datadog, Inc.

Reconciliation from GAAP to Non-GAAP Results

(In thousands, except per share data; unaudited)

Three Months Ended

March 31,

2026

2025

Reconciliation of net income

GAAP net income

52,574

24,642

Plus: Stock-based compensation expense

196,841

164,265

Plus: Amortization of acquired intangibles

1,640

1,097

Plus: Employer payroll taxes on employee stock transactions

16,994

13,563

Plus: M&A transaction costs (1)

695

—

Plus: Amortization of issuance costs

1,047

1,819

Non-GAAP net income before non-GAAP tax adjustments

269,791

205,386

Income tax effects and adjustments (2)

51,635

37,479

Non-GAAP net income after non-GAAP tax adjustments

218,156

167,907

Net income per share before non-GAAP tax adjustments - basic

0.76

0.60

Net income per share before non-GAAP tax adjustments - diluted

0.74

0.57

Net income per share after non-GAAP tax adjustments - basic

0.62

0.49

Net income per share after non-GAAP tax adjustments - diluted

0.60

0.46

Shares used in non-GAAP net income per share calculations:

Basic

353,272

343,097

Diluted

364,731

363,078

2)Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our long-term projected tax rate of 21%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

Datadog, Inc.

Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow

(In thousands; unaudited)

Three Months Ended

March 31,

2026

2025

Net cash provided by operating activities

334,622

271,541

Less: Purchases of property and equipment

(11,358)

(8,748)

Less: Capitalized software development costs

(34,173)

(18,402)

Free cash flow

289,091

244,391

Free cash flow margin

29%

32%

Contact Information

Yuka Broderick

Datadog Investor Relations

IR@datadoghq.com

Dan Haggerty

Datadog Public Relations

Press@datadoghq.com

Datadog is a registered trademark of Datadog, Inc.

All product and company names herein may be trademarks of their registered owners.

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