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NEW YORK - Datadog, Inc. (NASDAQ: DDOG), a prominent monitoring and security platform for cloud applications valued at $31.34 billion, has announced the acquisition of Metaplane, a data observability platform. According to InvestingPro data, the company maintains impressive gross profit margins of 80.81% and has demonstrated strong revenue growth of 26.12% over the last twelve months. This move aims to enhance Datadog’s capabilities in proactive data quality management, a critical aspect for businesses relying on AI and data-centric platforms like Snowflake and Databricks.
The integration of Metaplane’s technology into Datadog’s suite will offer machine learning-powered monitoring and detailed data lineage, enabling data engineers to detect and resolve data quality issues more efficiently. With the company’s next earnings report due on May 6, investors tracking this acquisition can access comprehensive analysis through InvestingPro’s detailed research reports, which offer expert insights on 1,400+ top stocks including Datadog. Unlike traditional tools that only monitor data post-landing in warehouses, Metaplane provides visibility throughout the entire data lifecycle, from production to consumption.
With data teams increasingly tasked with managing complex AI applications and data products, this acquisition is poised to empower them with actionable insights, facilitating a broader impact across organizations. Michael Whetten, VP of Product at Datadog, emphasized the growing necessity for observability in the realm of data teams, stating that the acquisition will help build reliable AI systems by unifying observability across applications and data.
Kevin Hu, co-founder and CEO of Metaplane, expressed enthusiasm about the merger, noting that joining Datadog will extend the reach of data observability to a larger number of companies while fostering closer collaboration between data and software teams. Metaplane will continue to serve its existing customers and will welcome new clients under the Metaplane by Datadog brand.
Datadog is widely recognized for its comprehensive SaaS platform that integrates various capabilities, including infrastructure monitoring, application performance monitoring, log management, and cloud security. Organizations of all sizes use Datadog to facilitate digital transformation, improve collaboration among teams, accelerate application delivery, and secure their infrastructures.
The press release includes forward-looking statements regarding the expected benefits of new products and features, which are subject to risks, uncertainties, and assumptions. Datadog cautions that actual results may differ from these projections.
This strategic acquisition indicates Datadog’s commitment to expanding its data observability offerings, based on a press release statement. The company’s strong financial health, rated as "GOOD" by InvestingPro’s comprehensive scoring system, positions it well for future growth. As businesses continue to navigate the complexities of data management and AI integration, tools like those provided by Datadog and Metaplane become increasingly vital to ensure data reliability and trustworthiness. InvestingPro analysis reveals 12 additional key insights about Datadog’s market position and growth potential, available to subscribers.
In other recent news, Datadog has been the focus of several analyst updates and product announcements. TD Cowen has maintained a Buy rating on Datadog, adjusting its price target from $165 to $140, while UBS reduced its target from $164 to $120, also maintaining a Buy rating. Scotiabank followed suit, lowering its target to $125 but keeping a Sector Outperform rating. These adjustments come as analysts prepare for Datadog’s upcoming earnings report, with expectations of continued growth despite economic challenges.
Datadog recently announced enhancements to its monitoring capabilities for Google Cloud’s BigQuery, providing detailed insights into data usage and costs. This development was highlighted during the Google Cloud Next conference, where Datadog was awarded Google Cloud Partner of the Year for the third consecutive year. The new features include advanced tracking of BigQuery usage and cost optimization, along with several other integrations with Google Cloud services.
KeyBanc Capital Markets maintained its Sector Weight rating on Datadog, noting positive trends such as increased customer migration from Splunk to Datadog and interest in new products like Flex Logs and Datadog On-Call. Despite some deferred deals affecting first-quarter results, the sales pipeline for the second quarter appears strong. Overall, these developments reflect Datadog’s strategic investments and its position in the observability market.
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