Datadog’s Q2 revenue surges 28% to $827 million, driven by increased demand for AI and cloud services.

Datadog reported its financial results for the second quarter of 2025, achieving a remarkable 28 per cent year-over-year increase in revenue, totalling USD $827 million. This growth was primarily driven by the expansion of its customer base, particularly among larger organisations. The company disclosed that it now serves approximately 3,850 customers with annual recurring revenue (ARR) of USD $100,000 or more, marking a 14 per cent increase from around 3,390 such customers a year prior. The second quarter demonstrated continued traction among enterprise clients and organisations scaling their use of Datadog’s cloud monitoring and security platform, which was reflected in both revenue growth and key operational metrics.

During this quarter, Datadog showcased over 125 new products, capabilities, and features at its user conference, DASH. Olivier Pomel, Co-Founder and Chief Executive Officer of Datadog, highlighted the company’s strong performance, noting USD $200 million in operating cash flow and USD $165 million in free cash flow. For the three months ending June 30, 2025, Datadog reported a GAAP operating loss of USD $(36) million, with a GAAP operating margin of (4)%. The company achieved a non-GAAP operating income of USD $164 million and a non-GAAP operating margin of 20 per cent. Datadog concluded the quarter with USD $3.9 billion in cash, cash equivalents, and marketable securities, while also advancing its offerings with significant product launches, including the introduction of three new AI agents and enhancements to its log management suite. 

Categories: Financial Performance, Customer Growth, Product Innovations 

Tags: Datadog, Revenue, Customer Growth, Cloud Monitoring, Security Platform, Innovations, Operating Cash Flow, Free Cash Flow, AI Agents, Product Launches