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NEW YORK - Datadog, Inc. (NASDAQ: DDOG), a cloud application monitoring and security platform with a market capitalization of $39.38 billion, has announced its progression toward achieving Federal Risk and Authorization Management Program (FedRAMP) High authorization. This advancement aims to enhance the capabilities of U.S. federal agencies in monitoring, securing, and optimizing their critical applications and infrastructure. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.74, indicating robust operational stability.
The High authorization level is indicative of Datadog’s commitment to meeting the federal government’s stringent security and compliance requirements. Previously, Datadog for Government had attained Moderate-Impact authorization, and the move to FedRAMP High will align the company with the government’s initiatives for modernization and digital transformation.
According to Yrieix Garnier, VP of Product at Datadog, federal agencies often face challenges such as tool sprawl, siloed data, and limited visibility across complex environments. Garnier asserts that Datadog’s unified platform is well-suited to address these issues.
Datadog is currently ’In Process’ for the FedRAMP High authorization, which means it is actively working towards meeting the necessary security controls to protect highly sensitive data. The company has completed a readiness assessment and is in the process of obtaining an Authority to Operate (ATO) from an agency sponsor. Datadog anticipates achieving the FedRAMP High authorization in the second half of this year.
The company’s platform integrates a range of capabilities, including infrastructure monitoring, application performance monitoring, log management, and cloud security, to provide real-time observability and security for technology stacks. This comprehensive approach has yielded impressive results, with InvestingPro data showing revenue growth of 25.54% and industry-leading gross profit margins of 80.15%. InvestingPro subscribers have access to 14 additional key insights about Datadog’s performance and valuation metrics through the platform’s comprehensive Pro Research Report.
The information in this article is based on a press release statement from Datadog. The company’s forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those projected. Further details on these risks can be found in Datadog’s filings with the Securities and Exchange Commission, including its latest Quarterly Report on Form 10-K. For comprehensive analysis and real-time financial metrics, investors can access detailed valuation models and financial health scores through InvestingPro’s advanced analytics platform.
In other recent news, Datadog has reported robust financial results for the first quarter of 2025, surpassing Wall Street expectations with earnings per share of $0.46, beating the forecast of $0.43, and revenue of $762 million, exceeding projections by $20.19 million. The company has also raised its full-year 2025 revenue guidance to a range of $3.215 billion to $3.235 billion. Barclays has responded to these strong results by raising Datadog’s stock price target to $128, while maintaining an Overweight rating, citing contributions from AI-Native technology and expanded customer bookings as key drivers. Similarly, Cantor Fitzgerald has maintained an Overweight rating with a price target of $134, expressing confidence in Datadog’s growth trajectory and market leadership in cloud observability. DA Davidson continues to endorse Datadog with a Buy rating and a $125 price target, highlighting the company’s consistent growth and product investment efforts. Meanwhile, Bernstein has adjusted its price target to $145 from $151, maintaining an Outperform rating, despite a slight reduction in expectations for new customer revenue. These developments reflect a strong market confidence in Datadog’s strategic positioning and growth potential.
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