Datadog Just Posted Its First Ever Billion-Dollar Quarter — And It’s Not Just AI Fueling The Surge

• Datadog CEO Olivier Pomel revealed that the company landed deals with two of the world’s largest AI research firms.
• He also said the company will showcase its latest innovations at the upcoming DASH user conference in June.
• The company’s base of customers with annual recurring revenue of at least $100,000 stood at 4,550 at the end of Q1, up nearly 21% year-on-year.

Datadog Inc. (DDOG) on Thursday posted its first-ever billion-dollar quarter as the company continues to accelerate its portfolio with AI, while its non-AI customers are also contributing to topline growth.

Datadog reported $1 billion in first quarter (Q1) revenue, registering a 32% year-on-year growth and beating Wall Street expectations of $960 million, according to Fiscal.ai data.

The company’s earnings per share (EPS) during Q1 stood at $0.6, while analysts expected an EPS of $0.15.

“This is a big achievement for all of us at Datadog and is a product of years of investment in building and innovating for our customers,” said Datadog CEO Olivier Pomel during an earnings call.

Datadog shares were up nearly 31% in Thursday’s pre-market trade, on track to record the best single-day gains ever since the stock debuted in 2019. DDOG was among the top trending tickers on Stocktwits at the time of writing.

DDOG’s AI Momentum Continues

Pomel also revealed that Datadog landed deals with two of the world’s biggest AI research firms.

“AI native customers cohort continued to grow and diversify rapidly, both in the number of customers we serve and the scale of those customers,” Pomel said.

Pomel said the company will also showcase its latest innovations at the upcoming DASH user conference in June.

DDOG Touts 4,550 Customers With ARR Of $100,000

Datadog touted that its base of customers with annual recurring revenue of at least $100,000 stood at 4,550 at the end of Q1, up nearly 21% year-on-year.

Pomel noted that the company’s customer churn has remained low, with a gross revenue retention in the mid-to-high 90%.

He also stated that more than half of the company’s customers use four or more products, while nearly a third use six or more.

DDOG CEO Says Still Getting Started

Pomel added that of Datadog’s 26 products, five currently have annual recurring revenue of $100 million or more, while three others are in the $50 million to $100 million range.

“We're still just getting started. We're working hard to build and deliver further growth in those products, and this leaves 18 other products which are earlier in their life cycle,” he said.

Datadog expects second-quarter (Q2) revenue in the $1.07 billion to $1.08 billion range. The company raised its fiscal year 2026 EPS forecast to $2.36-$2.44, from $2.08-$2.16, ahead of a consensus estimate of $2.18.

How Did Retail Traders React To DDOG?

Retail sentiment on Stocktwits around Datadog stock trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

One bullish user called Datadog one of the best long-term investments.

DDOG stock is up 6% year-to-date and 36% over the past 12 months. The S&P 500 ETF (SPY) is up 31% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 45%.

The Vanguard Total Stock Market Index Fund ETF (VTI) is up 32% over the past 12 months, while the Vanguard S&P 500 ETF (VOO) is up 31%.

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