Datadog Sparks Retail Excitement As CEO Says Cloud Usage Boom Attracts Giant AI Customers

Datadog CEO Olivier Pomel said that at the end of Q2, the company has approximately 3,850 customers generating at least $100,000 in annual recurring revenue.

Datadog Inc.’s (DDOG) co-founder and CEO, Olivier Pomel, drew attention to AI-focused customers, who are using the platform more as the company’s products gain traction. 

“AI is a tailwind for Datadog as increased cloud consumption drives more usage of our platform,” said Pomel in the second-quarter earnings call. “There are hundreds of customers in this group. They include more than a dozen that are spending over $1 million a year with us, and more than 80 who are spending more than $100,000, and they include 8 of the top 10 leading AI companies.”

On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘neutral’ territory the previous day. Message volume shifted to ‘high’ from ‘low’ levels in 24 hours. 

A bullish user noted that many people are unaware of Datadog’s significance in the cloud dominance landscape.

Another user said they are loading up the stock.

Pomel also added that at the end of Q2, the company has approximately 3,850 customers generating at least $100,000 in annual recurring revenue (ARR), an increase from around 3,390 in the same quarter last year. These high-value customers accounted for roughly 89% of Datadog’s total ARR. 

Datadog’s Q2 revenue increased 28% year-on-year (YoY) to $827 million, beating the analysts’ consensus estimate of $790 million, as per Fiscal AI data. Adjusted earnings per share (EPS) of $0.46 also exceeded the consensus estimate of $0.41.

The company’s Q2 operating cash flow was $200 million, with a free cash flow of $165 million. Datadog stock has lost over 6% year-to-date and gained over 23% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<