Datadog and AWS expand collaboration with new strategic agreement

LAS VEGAS - Datadog, Inc. (NASDAQ:DDOG) announced a new strategic collaboration agreement (SCA) with Amazon Web Services (AWS) at the AWS re:Invent conference on Wednesday, building upon their decade-long partnership. The cloud monitoring company, currently valued at $54.5 billion, has demonstrated impressive financial strength with more cash than debt on its balance sheet and 26.6% revenue growth over the last twelve months, according to InvestingPro data.

The cloud monitoring and security platform provider unveiled multiple product launches across AI, observability and security designed to help organizations running on AWS monitor, optimize and secure their cloud environments.

The new product capabilities include LLM Observability for monitoring agent workflows, Storage Management for Amazon S3 buckets visibility, and several preview features such as AWS DevOps Agent integration, support for AWS Lambda Managed Instances, and AI-powered remediation tools for serverless applications.

"When issues arise, the real value isn’t just in identifying what’s broken, but in understanding the entire stack," said Sean Fernandez, CIO at ROLLER, in the press release. "Datadog gives us a unified view of our AWS environment through a single pane of glass, correlating everything in seconds."

The expanded SCA aims to help customers with cloud migrations, modernization efforts, security across AWS and multi-cloud environments, and deployment of generative AI capabilities on AWS. The collaboration covers all regions and industries, including public sector, enterprise and independent software vendors. With impressive gross profit margins of nearly 80% and a current P/E ratio of 501, Datadog appears to be trading above its InvestingPro Fair Value. Notably, 34 analysts have revised their earnings upwards for the upcoming period, suggesting continued confidence in the company’s growth trajectory.

Jarrod Buckley, Vice President of Channels and Alliances at Datadog, stated that expanding the global collaboration with AWS enables continued innovation to help customers "become more resilient, reduce risk, and achieve time-to-value faster."

Datadog currently offers more than 1,000 total integrations, including 100 unique to AWS, according to the company’s announcement.

The company plans to host a webinar recapping the announcements made at re:Invent.

In other recent news, Datadog, Inc. has launched Bits AI SRE, an artificial intelligence agent designed to autonomously investigate alerts and identify root causes of technical incidents. The tool aims to reduce incident response time and minimize business disruption during system outages. Additionally, Datadog introduced a new Storage Management product to help organizations optimize their cloud object storage costs, now available for Amazon S3 and in preview for Google Cloud Storage and Azure Blob Storage.

In personnel developments, Datadog appointed John Trapani as Field CTO for Financial Services, a newly created position aimed at developing observability strategies for financial sector clients. Analyst firms have also adjusted their outlook on Datadog, with Truist Securities raising its price target to $195, citing a strong third-quarter performance. RBC Capital increased its price target to $216, highlighting accelerating growth and expanded usage through an early renewal from OpenAI.

These updates reflect ongoing advancements and strategic moves by Datadog in the tech and financial sectors.

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