Datadog, a cloud security and observability platform, has released its financial results for the fourth quarter and fiscal year 2022. The company achieved impressive growth, with revenue increasing by 44% year-over-year for Q4 and 63% year-over-year for the full fiscal year. The company’s operating cash flow and free cash flow were also strong, with $114.4 million and $96.4 million respectively in Q4.
Datadog’s growth was not limited to smaller customers either. The company reported an increase of 47% in customers with ARR of $1 million or more, and a 38% increase in customers with ARR of $100,000 or more. This suggests that the company is gaining traction among larger, more established organizations.
In terms of product development, Datadog launched Universal Service Monitoring for general availability, which automatically detects all microservices across an organization’s environment and provides instant visibility into their health and dependencies, all without any code changes. This new product has the potential to expand the company’s market share by making it easier for organizations to monitor and manage their cloud applications.
Looking ahead, Datadog’s first quarter and fiscal year 2023 outlook appears positive. The company expects revenue between $466 million and $470 million for Q1, and revenue between $2.07 billion and $2.09 billion for the full fiscal year. Additionally, the company expects non-GAAP operating income between $300 million and $320 million, and non-GAAP net income per share between $1.02 and $1.09.
Overall, Datadog’s strong financial results, growth in larger customers, and product development make it a promising investment.