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NEW YORK - Datadog, Inc. (NASDAQ: DDOG), a prominent cloud applications monitoring and security platform with a market capitalization of $39.38 billion and impressive revenue growth of 25.54% over the last twelve months, announced the release of two new projects from its Datadog AI Research division. The unveiling included Toto, an innovative open-source foundation model for observability, and BOOM, the largest public benchmark for observability metrics to date. According to InvestingPro analysis, the company maintains strong financial health with robust gross profit margins of 80.15%.
Toto represents a significant advancement in the field of artificial intelligence as it is the first foundation model of its kind tailored to observability data. Foundation models in AI are designed to learn from extensive datasets and can be fine-tuned for a variety of tasks. Toto, in particular, is trained on Datadog’s internal telemetry metrics, which has resulted in unparalleled performance in time series forecasting when compared to existing models. Its zero-shot forecasting capability is expected to revolutionize anomaly detection and capacity planning by eliminating the need for individual series tuning. For investors interested in Datadog’s growth potential, InvestingPro offers comprehensive analysis with 14 additional ProTips and detailed financial metrics.
BOOM complements Toto by providing a benchmark with over 350 million observations across 2,807 multivariate series, reflecting the complexity and unique challenges of production telemetry data. This benchmark is not only a resource for the research community but also sets a new standard for time series forecasting by addressing issues such as scale, sparsity, and spikes that are common in observability metrics.
Ameet Talwalkar, Chief Scientist at Datadog, expressed enthusiasm for the potential of these open-source projects to foster community collaboration and drive innovation in observability forecasting. The company anticipates continuous releases from Datadog AI Research to contribute to the broader AI research community and solve real-world customer problems.
Datadog’s integration of research with product development aims to translate these advancements into practical benefits for its customers. Both Toto and BOOM are available for immediate download under a permissive license, inviting researchers and the open-source community to engage with these tools.
This information is based on a press release statement and provides a glimpse into Datadog’s commitment to open-source innovation and its role in enhancing cloud observability and security through AI research. With strong fundamentals, including a healthy balance sheet showing more cash than debt, Datadog continues to demonstrate financial stability alongside technological innovation. Discover more detailed insights and access the comprehensive Pro Research Report covering Datadog and 1,400+ other top stocks through InvestingPro.
In other recent news, Datadog has made significant progress toward achieving FedRAMP High authorization, which is crucial for enhancing the U.S. federal agencies’ ability to monitor and secure their applications and infrastructure. This move follows its previous Moderate-Impact authorization and is part of Datadog’s commitment to meeting stringent federal security requirements. On the financial front, Datadog’s first-quarter results have been robust, with notable contributions from AI-native technology and increased bookings from new customers, as reported by Barclays. The firm raised its price target to $128, maintaining an Overweight rating, citing strong results and potential for future growth. Meanwhile, Cantor Fitzgerald also reiterated its Overweight rating with a price target of $134, highlighting Datadog’s leadership in the cloud observability market. DA Davidson maintained a Buy rating with a $125 target, expressing confidence in Datadog’s growth trajectory, particularly from AI-native customers. Bernstein adjusted its price target to $145 from $151, maintaining an Outperform rating despite a conservative stance on future guidance. These developments reflect a positive outlook from multiple analyst firms, emphasizing Datadog’s strategic positioning and growth potential.
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