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LAS VEGAS - Datadog, Inc. (NASDAQ: DDOG), a leading platform in cloud application monitoring and security with an impressive market capitalization of $29.8 billion and industry-leading gross margins of 81%, has announced the expansion of its monitoring capabilities for Google Cloud's BigQuery, aiming to provide customers with more detailed insights into their data usage and costs. According to InvestingPro data, the company maintains robust financial health with a current ratio of 2.64, indicating strong operational efficiency. The announcement was made during the Google Cloud Next conference, where Datadog was also honored with the Google Cloud Partner of the Year award for the third consecutive year.
The new BigQuery monitoring features, currently in preview, enable users to scrutinize BigQuery usage by user and project, identify primary cost drivers, and detect long-running queries for optimization. Additionally, the tool helps in identifying data quality issues by monitoring for data freshness and volume anomalies. This expansion comes as Datadog continues its strong growth trajectory, with InvestingPro data showing revenue growth of 26% in the last twelve months. For deeper insights into Datadog's growth metrics and 20+ additional ProTips, consider exploring InvestingPro's comprehensive research report.
Yasmeen Ahmad, Managing Director of Strategy & Outbound Product Management for Data, Analytics & AI at Google Cloud, emphasized the importance of BigQuery in users' tech stacks and the added granularity in tracking usage that Datadog's new capabilities offer. Yrieix Garnier, VP of Product at Datadog, highlighted the benefits of the new features, stating that they allow customers to pinpoint cost centers and optimize BigQuery usage effectively.
Apart from BigQuery enhancements, Datadog also introduced several other product launches and integrations with Google Cloud, including LLM Observability for monitoring large language model applications, Cloud TPU Integration to identify resource bottlenecks, and Private Service Connect for secure data transfer. Other features in preview are GKE Autoscaling, Storage Monitoring for Google Cloud Storage, and Google Cloud Cost Recommendations to identify cost inefficiencies.
Datadog's platform integrates and automates various monitoring capabilities, providing unified observability and security for customers' entire technology stacks. Its extensive support for Google Cloud aims to deliver advanced observability and security to joint customers, a commitment that has been recognized with multiple Google Cloud Partner of the Year awards.
The press release also contains forward-looking statements regarding the benefits of new products and features, which are subject to risks, uncertainties, and assumptions. Datadog's filings with the Securities and Exchange Commission provide further details on these risks. Despite market volatility, Datadog maintains strong fundamentals with revenue of $2.68 billion in the last twelve months. InvestingPro subscribers can access detailed financial analysis, including Fair Value estimates and comprehensive health scores, helping investors make more informed decisions about this tech leader.
This news is based on a press release statement from Datadog.
In other recent news, Datadog has announced plans to open its first data center in Australia, expanding its global footprint. This facility will be built on Amazon Web Services and is expected to be operational by mid-year, catering to the needs of Australian customers with local privacy and security compliance. In terms of financial performance, Datadog's first-quarter results were slightly below expectations due to deferred deals, although these were not linked to broader economic conditions. KeyBanc Capital Markets maintained a Sector Weight rating on Datadog, with analyst Eric Heath noting positive developments in customer migration to Datadog's services and an optimistic sales pipeline for the second quarter.
DA Davidson reiterated a Buy rating on Datadog, setting a $165 price target, and emphasized the company's potential for sustained growth. Analyst Gil Luria from DA Davidson projected a growth rate of 20-25% over the next few years, backed by industry checks and proprietary data. Similarly, BofA Securities maintained a Buy rating with a $170 price target, focusing on Datadog's capacity for new product development and revenue growth potential. The firm's analysis highlighted multiple growth avenues and the potential for revenue expansion beyond 2025 guidance. These developments come as Datadog continues to strengthen its position in the observability market, with analysts expressing confidence in its strategic investments and future prospects.
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