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Earnings callNasdaq· November 27, 2025

Datadog (DDOG) Q3 2025 Earnings Call Transcript

View original at nasdaq.com
Datadog (DDOG) Q3 2025 Earnings Call Transcript Image source: The Motley Fool. Date Nov. 6, 2025 4:46 p.m. ET Call participants Chief Executive Officer and Co-Founder — Olivier PomelChief Financial Officer — David ObstlerVice President, Investor Relations — Yuka Broderick Need a quote from a Motley Fool analyst?…
Opening lines of the source · Nasdaq · short snapshot — read the full document at the original

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

  • Cloud plus AI TAM expected to grow to trillions of dollars

    80% confidence
  • Non-AI customer YoY growth accelerated to 20% in Q3 from 18% in Q2

    80% confidence
  • October trends show non-AI growth acceleration continuing

    80% confidence
  • New logo annualized bookings more than doubled year-over-year, reaching a new record

    80% confidence
  • LLM spans sent quadrupled in recent months

    80% confidence
  • The portion of year-over-year revenue growth related to new customers was about 25% in Q3, up from 20% in Q2

    80% confidence
  • Bits AI Security Agent automates 90% of issue triage

    80% confidence
  • GPU monitoring products don't generate any significant revenue yet and represent a future opportunity

    80% confidence
  • The sequential usage growth for non-AI existing customers was the highest seen going back 12 quarters

    80% confidence
  • Customer reported that with Bits AI SRE being on call 24/7, mean time to resolution for services has improved significantly

    80% confidence
  • Customer reported being very hooked on Datadog due to the MCP server tool

    80% confidence
  • Long-term gross margin target remains plus or minus 80%, unchanged

    80% confidence
  • Operating expense growth was 32% YoY in Q3, down from 36% in Q2

    80% confidence

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Pharma Pipeline Catalysts and M&A Heat Up as AI-Designed Drugs Enter the Clinic
Late-September 2026 brought a dense run of clinical readouts: Novo Nordisk's CagriSema data at EASD, Lilly's ADtouch results for EBGLYSS, and Merck's tulisokibart Phase 2b result. Lilly's $2.9B Merida Biosciences acquisition and the 2026-11-14 FDA PDUFA date for ivonescimab sit alongside these as the main deal and regulatory events. AI-designed drugs such as rentosertib, and speculative AI-linked trial ventures such as QAIAx, are moving from hype toward clinical validation. Broader AI-sector regulatory and legal friction (Tesla Cybercab probe, xAI Minnesota ruling, OpenAI lawsuits) shows rising scrutiny that could spill into AI-driven healthcare.
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Satellite-Terrestrial Network Integration Acceleration
Increased investment and launches in hybrid satellite-cellular networks across telecom industry; competitive responses from other carriers; regulatory activity around satellite spectrum; expansion of emergency/rural connectivity use cases
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Apple Inc.
The observation date (2025-12-27) precedes Q1 2026, making it logically impossible to have actual Q1 2026 cash data at that point. Q1 2026 would not end until March 31, 2026. Additionally, the magnitude of the difference ($45.3B vs $132.42) is implausibly large even as a normal quarterly change for Apple. While different fiscal periods can show different values, the timing relationship here suggests a data integrity issue rather than legitimate period-over-period variation.
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