Datadog Files To Go Public

  • General
  • August 24, 2019
  • 22
  • 5 minutes read
image: Datadog

Datadog, a New York-based cloud monitoring and analytics startup last valued at $640 million [Pitchbook data], has filed for an initial public offering (IPO). Datadog just unveiled its S-1 filing, joining the likes of WeWork, Cloudflare and SmileDirectClub, which also recently did the same. Datadog’s S-1 filing shows $198 million 2018 revenues, up 96% from $101 million in 2017. For the first half of this year (ended June 30), Datadog recorded $153 million in revenue.

However, Datadog is not profitable, with losses of $2.6 million and $11 million in 2017 and 2018 respectively. In the first half of this year, Datadog recorded $13.4 million in losses. Other key takes from its S-1 filing include:

  • $52 million in cash and cash equivalents as of Q2 2019 end [June 30, 2019]
  • $55.2 million R&D spend in 2018, up more than 100% from $25 million in 2017
  • $89 million sales and marketing spend in 2018, up 102% from $44 million in 2017
  • Roughly 8,800 customers as of June end, compared to 7,700 as of 2018 end, 5,400 in 2017 and 3,800 in 2016 
  • More than 40 customers with $1 million+ annual recurring spend
  • 590 customers with $100,000+ annual recurring spend
  • Roughly 35% of the Fortune 100 are Datadog customers
  • $448,000 total compensation for CEO Olivier Pomel in 2018, $7.6 million for CFO David Obstler and $1.1 million for General Counsel Laszlo Kopits
(L-R) Datadog co-founders Alexis Lê-Quôc (CTO) and Olivier Pomel (CEO)

image: Datadog

Datadog was founded in 2010, and launched its cloud infrastructure monitoring service two years after. The New York-based startup surpassed 100 customers in 2013, 1,000 in 2015 and 5,000 in 2017. Datadog estimates its total market opportunity to be $35 billion, according to its S-1 filing.

Datadog hasn’t yet set a price range for its IPO. Investment banks Morgan Stanley, J.P. Morgan and Goldman Sachs are lead underwriters for its IPO. Datadog intends to trade under the ticker “DDOG” when it debuts on the public markets.

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