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NEW YORK - Datadog, Inc. (NASDAQ: DDOG), a prominent platform for cloud application monitoring and security with a market capitalization of $34.91 billion, announced the establishment of its inaugural data center in Australia, expected to be operational by mid-year. This move will expand Datadog’s global data center footprint, which already includes North America, Asia, Europe, and AWS GovCloud. 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.
The new facility, to be built on Amazon Web Services (AWS), is designed to offer sovereign data storage and processing capacity, catering to Australian customers’ needs for local privacy and security compliance. The center will provide access to all existing Datadog products, ensuring localized data handling for businesses in the region.
The establishment of the Australian data center is part of Datadog’s broader investment in the Australia and New Zealand (ANZ) market, which includes the recent opening of a Melbourne office and team expansions in Sydney and Auckland. According to Yanbing Li, Datadog’s Chief Product Officer, the investment aims to support Australian companies that are rapidly innovating and relying on Datadog for their cloud investments, digital transformations, and AI projects.
Industry leaders in the ANZ region have already recognized the benefits of Datadog’s platform. Grant Currey, Chief Technology Officer at Flight Centre Corporate ANZ, highlighted the platform’s ability to unify their technology ecosystem and shift from a reactive to a proactive approach. Similarly, Lisa Tobin, Group Executive of Technology at SEEK, noted the platform’s role in proactively resolving issues across multiple business units.
Datadog’s expansion into Australia is particularly significant for businesses in highly regulated industries such as healthcare and financial services, where local data hosting is a critical requirement.
This announcement is based on a press release statement and includes forward-looking statements regarding the benefits of new products and features, which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated.
In other recent news, Datadog has received multiple affirmations from analysts regarding its stock outlook. BofA Securities reiterated a Buy rating with a $170 price target, emphasizing Datadog’s potential for revenue growth beyond its 2025 guidance due to its capacity for new product development. DA Davidson also maintained a Buy rating with a $165 target, citing the company’s potential for over 20% revenue growth this year, despite conservative guidance for 2025. Piper Sandler expressed confidence in Datadog’s strategic plans, maintaining an Overweight rating with a $160 target, while Needham analysts echoed this sentiment with a Buy rating and the same price target, highlighting strong momentum in Datadog’s business operations.
Goldman Sachs maintained a Buy rating and a $162 price target, noting Datadog’s strategic investments in product development and its strong growth outlook for AI-native customers. The firm’s analysts pointed out that AI-customer revenue has increased significantly, reflecting positive trends in the company’s annual recurring revenue. Despite limited visibility in out-quarter usage revenue, Goldman Sachs remains optimistic about Datadog’s long-term market position. These recent developments suggest a generally positive outlook from analysts regarding Datadog’s growth trajectory and market opportunities.
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