Datadog, Inc. Earnings Quote from Olivier Pomel

Datadog, Inc. 2026 Q2: Financial Performance summary

• Billings were $1.18 billion (+38% YoY) and RPO was $3.47 billion (+43% YoY), with current RPO growing ~40% YoY and RPO duration increasing.
• Customer metrics: total customers were ~33,400 vs ~31,400 a year ago; customers with ARR $100k+ were ~4,720 vs ~3,850 a year ago, generating ~91% of ARR.
• Free cash flow was $279 million with a free cash flow margin of 25%; cash flow from operations was $316 million.
• Gross margin was 79.6% vs 80.2% last quarter and 80.9% a year ago, with management noting it fluctuates based on innovation investments and efficiency efforts.
• Operating income was $257 million for a 23% operating margin (vs 22% last quarter and 20% a year ago); event cost for DASH was about $15 million.
• Quarter-over-quarter revenue growth was 11%, the highest since Q2 2022.
• Revenue acceleration excluding AI customers was in the high 20s% year-over-year (up from mid-20s% last quarter and 18% in the year-ago quarter).
• Revenue was $1.12 billion, up 36% year-over-year and above the high end of guidance.