Datadog Reports Q1 2025 Results: Strong Revenue Growth and Customer Expansion

Datadog reported first quarter 2025 revenue of $762 million, a 25% year-over-year increase, with free cash flow reaching $244 million. The company added over 400 large customers, totaling approximately 3,770 with $100K+ ARR, up 13% from the prior year. Non-GAAP operating income was $167 million with a 22% margin, while GAAP net income was $25 million, or $0.07 per diluted share. Datadog also announced two acquisitions—Eppo and Metaplane—to strengthen its experimentation and data observability capabilities. For Q2 2025, revenue is projected between $787–791 million, and for the full year, $3.215–3.235 billion. The company will host its DASH 2025 conference in New York on June 10–11.

Datadog Acquires Eppo to Strengthen AI, Product Analytics, and Feature Management

Datadog (NASDAQ: DDOG) announced the acquisition of Eppo, a platform specializing in feature flagging and experimentation, to enhance its Product Analytics suite. This move enables Datadog to offer an integrated platform where developers can manage feature rollouts, run experiments, and measure real-time business impacts—all in one place.

By combining Eppo’s capabilities with its observability tools, Datadog aims to reduce risk, accelerate AI deployments, and provide a seamless development-to-impact workflow. The integration helps developers quantify the performance of AI models, features, and UI changes while improving deployment safety.

Eppo will continue to serve existing and new clients as "Eppo by Datadog." The acquisition positions Datadog as a comprehensive platform for teams building modern, AI-driven software products.

Datadog’s 2025 DevSecOps Report Highlights Need for Smarter Vulnerability Prioritization

Datadog released its *State of DevSecOps 2025* report, revealing that only 18% of vulnerabilities labeled “critical” under the CVSS scoring system are truly critical when runtime context is applied. By incorporating factors like whether an app is in production or internet-exposed, Datadog’s prioritization algorithm filters out unnecessary noise and helps security teams focus on the most urgent issues.

Key findings include:

- Java applications lead in known-exploited vulnerabilities, with 44% of Java services affected, compared to 2% for other languages.
- Patch delays are longer in Java-based ecosystems (62 days on average), compared to .NET (46 days) and JavaScript (19 days).
- Software supply chain attacks remain a threat, with malicious packages mimicking legitimate ones on PyPI and npm repositories.
- Credential management is improving: use of long-lived credentials in GitHub Actions dropped from 63% to 58% year-over-year.
- Outdated dependencies are widespread, especially in services deployed infrequently, which are 47% more likely to run old libraries.

Datadog analyzed tens of thousands of applications and container images across cloud environments to compile this report.

Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced that it will report its first quarter fiscal year 2025 financial results before the U.S. financial markets open on Tuesday, May 6, 2025.

Datadog Expands BigQuery Monitoring and Deepens Google Cloud Integration

At Google Cloud Next, Datadog unveiled expanded BigQuery monitoring features that enable users to track usage, optimize costs, and detect data issues more efficiently. The enhancements build on Datadog’s 35+ Google Cloud integrations and join six other recent tools, including LLM observability for Gemini/Vertex AI, TPU infrastructure monitoring, GKE autoscaling, and cloud cost recommendations. Datadog was also named a Google Cloud Partner of the Year for the third consecutive year, underscoring its role in driving operational visibility and performance improvements across cloud environments.