Datadog、2019年第3四半期の業績を発表

2019年11月12日午後4時10分 米国東海岸時間

第3四半期の売上高が前年比88％増の9千6百万米ドルに

ARR（年間経常収益）10万米ドル以上の大口顧客が前年377社から727社へと拡大

年次ユーザーカンファレンスで15以上の新製品と機能を発表

新規公募により7億900万米ドルを調達

ニューヨーク--(BUSINESS WIRE)--クラウド時代の開発者、IT運用チーム、ビジネスユーザー向けの監視および分析プラットフォームであるDatadog（Nasdaq:DDOG）は、本日、2019年9月30日に終了した第3四半期の業績を発表しました。

「当社は第3四半期に非常に満足しています。特に素晴らしいのは、前年比88％の収益成長率と、大手顧客との取引が牽引した点です。」とDatadogの共同創業者兼CEOであるOlivier Pomelは述べました。 「Datadogは、主要な監視および分析プラットフォームとしての地位を確立しており、この四半期も引き続き機能を拡張してきました。 ネットワークパフォーマンスモニタリングやリアルユーザーモニタリングなど、7月に開催される年次ユーザーカンファレンスで15を超える新しい製品と機能を発表しました。」

Pomelは、また、次のように述べています。「最近のIPOはDatadogにとってエキサイティングなマイルストーンであり、すべての従業員の勤勉な働きに対する功績です。 私たちはまだ非常に大きな市場機会の早いイニングにいると信じており、顧客の苦痛を解決することに引き続き注力しています。」

2019年第3四半期の財務ハイライト：

• 
  収益は95.9百万米ドルで、前年比88％増加しました。
  


• 
  GAAP営業損失は4.2百万米ドルでした。 GAAP営業利益率は4.4％でした。
  


• 
  非GAAP営業利益は60万米ドルでした。 非GAAP営業利益率は0.7％でした。
  


• 
  基本および希薄化後の1株当たりのGAAP純損失は0.04米ドルでした。 希薄化後1株当たりの非GAAP純利益は0.00米ドルでした。
  


• 
  営業キャッシュフローは380万ドルで、フリーキャッシュフローは3.7百万米ドルでした。
  


• 
  現金、現金同等物、および制限付き現金は、2019年9月30日時点で771百万米ドルでした。
  

第3四半期および最近のビジネスのハイライト：

• 
  9月30日の時点で、ARR（年間経常収益）が100,000米ドル以上の顧客が727社あり、2018年9月30日の377社から93％増加しました。
  


• 
  7月には、毎年恒例のユーザーカンファレンスDashを開催しました。これには、ニューヨーク市で1,200人以上が参加しました。ネットワークパフォーマンスモニタリング、リアルユーザーモニタリング、サーバーレス機能、ログリハイドレーションなどの追加を含む、15を超える新しい製品と機能を導入しました。これらの新しい製品と機能により、すべてが緊密に統合されたプラットフォームで、お客様にフルスタックの可視性を提供する道がさらに広がります。
  


• 
  9月には、1株当たり27米ドルで2760万株の新規株式公開を完了し、純収益は7億900万米ドルでした。クラスA普通株式は、現在、ナスダックグローバルセレクトマーケットでシンボル「DDOG」で取引されています。このエキサイティングな会社のマイルストーンの達成を支援していただいたお客様、従業員、および新規および既存の投資家に感謝します。
  


• 
  10月に、FedRAMP認定プロセスを開始し、現在、連邦リスクおよび承認管理プログラム（FedRAMP）マーケットプレイスで「処理中」であることを発表しました。 FedRAMPの承認を達成すると、米国連邦政府の省庁がDatadogのクラウドプラットフォームを採用して使用できるようになるため、当社が対応可能な市場が拡大します。
  


• 
  DatadogはForrester ResearchのレポートThe Forrester Wave™：Intelligent Application and Service Monitoring、Q2 2019のリーダーとして認識されています。このレポートでは、Forresterは3つの主なカテゴリで13のIntelligent Application and Service Monitoring（IASM）ベンダーを評価しました：現在提供、戦略、市場での存在感。 Datadogは、戦略カテゴリのすべてのベンダーの中で最高のスコアを獲得しました。
  

2019年第4四半期および通年の見通し：

2019年11月12日現在の情報に基づいて、Datadogは2019年第4四半期および通年の次のガイダンスを提供しています。

• 
  2019年第4四半期の見通し：
  
  -- 収益は1億100万ドルから1億300万ドル。
  
  -- 8百万米ドルから6百万米ドルの間の非GAAP営業損失。
  
  -- 約297百万の加重平均発行済み株式数を想定した場合の1株当たりの非GAAP純損失は、0.02〜0.01米ドルです。
  


• 
  2019年通期の見通し：
  
  -- 収益は3億5000万米ドルから3億5200万米ドル。
  
  -- 非GAAP営業損失は20百万米ドルから18百万米ドル。
  
  -- 1株あたりの非GAAP純損失は0.12から0.11米ドルの間で、約1億4000万の加重平均発行済み株式数を想定しています。
  

Datadog has not reconciled its expectations as to non-GAAP operating loss, or as to non-GAAP net loss per share attributable to common stockholders, diluted, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog’s results computed in accordance with GAAP.

About Datadog

Datadog is the monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of our customers’ entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations and business teams, accelerate time to market for applications, reduce time to problem resolution, understand user behavior and track key business metrics.

Forward-Looking Statements

This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Datadog’s future financial performance, including our outlook for the fourth quarter and for the full year of 2019. These forward-looking statements are based on Datadog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Datadog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to (1) our recent rapid growth may not be indicative of our future growth;(2) our history of operating losses;(3) our limited operating history;(4) our business depends on our existing customers purchasing additional subscriptions and products from us and renewing their subscriptions;(5) our ability to attract new customers;(6) our ability to effectively develop and expand our sales and marketing capabilities;(7) risk of a security breach;(8) risk of interruptions or performance problems associated with our products and platform capabilities;(9) our ability to adapt and respond to rapidly changing technology or customer needs;(10) the competitive markets in which we participate;(11) risks associated with successfully manage our growth and (12) general market, political, economic, and business conditions. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our prospectus filed with the SEC pursuant to Rule 424(b), dated September 19, 2019. Additional information will be made available in our quarterly report on Form 10-Q for the quarter ended September 30, 2019 and other filings and reports that we may file from time to time with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

About Non-GAAP Financial Measures

Datadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, and free cash flow. Datadog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Datadog’s financial performance. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Datadog’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Datadog’s reported financial results.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Datadog defines non-GAAP gross profit, non-GAAP operating expenses (sales and marketing, research and development, general and administrative), non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss) and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense;(2) the amortization of purchased intangibles and (3) non-cash benefit related to a one-time tax adjustment. Datadog defines free cash flow as Net cash provided by (used in) operating activities, minus capital expenditures and minus capitalized software development costs. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

Management believes these non-GAAP financial measures are useful to investors and others in assessing Datadog’s operating performance due to the following factors:

Stock-based compensation and amortization of stock-based compensation capitalized in software development costs. Datadog utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of purchased intangibles and transaction costs related to acquisition. Datadog views amortization of purchased intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period. Similarly, Datadog views acquisition related expenses as events that are not necessarily reflective of operational performance during a period.

Non-cash benefit related to one-time tax adjustment. Datadog recorded a contingent payroll tax liability in conjunction with a common stock repurchase transaction in 2015. In 2019, the period of limitations for assessing the contingent Federal payroll tax liability expired and the Company was legally released from being the primary obligor, and recognized a benefit in the consolidated statement of operations. Datadog does not believe this is reflective of on-going results and therefore adjusted for this benefit.

Assumed preferred stock conversion. As a result of Datadog’s initial public offering, all outstanding shares of preferred stock were automatically converted into shares of Class B common stock. Consequently, non-GAAP diluted net income per share for the three months ended September 30, 2019 has been calculated assuming the conversion of all outstanding shares of preferred stock into shares of Class B common stock.

Additionally, Datadog’s management believes that the non-GAAP financial measure free cash flow is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures and the capitalization of software development costs due to the fact that these expenditures are considered to be a necessary component of ongoing operations.

Operating Metrics

Datadog’s number of customers with ARR of $100,000 or more is based on the ARR of each customer, as of the last month of the quarter.

We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.

We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR is defined as the revenue run-rate of subscription agreements from all customers for the last month of the period, including committed amounts and any additional usage. ARR and MRR should be viewed independently of revenue as they are operating metrics and are not intended to be replacements or forecasts of revenue.

Condensed Consolidated Statements of Operations (In thousands, except per share data;unaudited)
	Three Months								Nine Months
	Ended September 30,								Ended September 30,
	2019				2018				2019				2018
Revenue	$	95,864			$	51,074			$	249,136			$	136,467
Cost of revenue (1)(2)		23,297				12,098				63,225				30,690
Gross profit		72,567				38,976				185,911				105,777
Operating expenses:
Research and development (1)		28,684				14,159				75,531				37,456
Sales and marketing (1)		38,836				25,130				105,061				59,747
General and administrative (1)		9,265				4,322				23,193				12,933
Total operating expenses		76,785				43,611				203,785				110,136
Operating loss		(4,218	)			(4,635	)			(17,874	)			(4,359	)
Other income, net		90				311				646				612
Loss before provision for income taxes		(4,128	)			(4,324	)			(17,228	)			(3,747	)
Provision for income taxes		(33	)			(349	)			(373	)			(428	)
Net loss	$	(4,161	)		$	(4,673	)		$	(17,601	)		$	(4,175	)
Basic and diluted net loss per share	$	(0.04	)		$	(0.06	)		$	(0.20	)		$	(0.06	)
Weighted average shares used in calculating basic and diluted net loss per share		103,876				73,353				87,758				69,708
(1) Includes stock-based compensation expense as follows:
Cost of revenue	$	161			$	74			$	372			$	182
Research and development		1,934				387				3,709				931
Sales and marketing		1,540				522				3,276				1,241
General and administrative		1,042				325				2,659				697
Total	$	4,677			$	1,308			$	10,016			$	3,051
(2) Includes amortization of acquired intangibles as follows:
Cost of revenue	$	179			$	112			$	531			$	332
Total	$	179			$	112			$	531			$	332

Condensed Consolidated Balance Sheets (In thousands;unaudited)
	September 30,				December 31,
	2019				2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	760,945			$	53,639
Accounts receivable, net of allowance for doubtful accounts of $516 and $477 as of September 30, 2019 and December 31, 2018, respectively		87,208				55,822
Deferred contract costs, current		6,151				3,717
Prepaid expenses and other current assets		18,172				8,773
Total current assets		872,476				121,951
Property and equipment, net		31,266				21,649
Operating lease assets		55,695				—
Goodwill		7,626				7,626
Intangible assets, net		759				1,288
Deferred contract costs, non-current		12,064				7,292
Restricted cash		9,507				11,341
Other assets		17,360				8,603
TOTAL ASSETS	$	1,006,753			$	179,750
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable	$	18,992			$	12,638
Accrued expenses and other current liabilities		30,481				30,290
Operating lease liabilities, current		10,222				—
Deferred revenue, current		116,966				69,306
Total current liabilities		176,661				112,234
Operating lease liabilities, non-current		51,684				—
Deferred revenue, non-current		4,827				1,393
Other liabilities		2,346				1,359
Total liabilities		235,518				114,986
CONVERTIBLE PREFERRED STOCK		—				140,805
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock		3				—
Additional paid-in capital		895,793				30,834
Accumulated other comprehensive (loss) income		(54	)			31
Accumulated deficit		(124,507	)			(106,906	)
Total stockholders’ equity (deficit)		771,235				(76,041	)
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)	$	1,006,753			$	179,750

Condensed Consolidated Statements of Cash Flow (In thousands;unaudited)
	Three Months								Nine Months
	Ended September 30,								Ended September 30,
	2019				2018				2019				2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(4,161	)		$	(4,673	)		$	(17,601	)		$	(4,175	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		4,007				1,743				8,776				4,239
Amortization of deferred contract costs		1,436				725				3,688				1,806
Stock-based compensation, net of amounts capitalized		4,677				1,308				10,016				3,051
Noncash lease expense		3,788				—				8,403				—
Provision for accounts receivable allowance		282				160				835				285
Loss (gain) on disposal of property and equipment		438				(4	)			442				(1	)
Changes in operating assets and liabilities:
Accounts receivable, net		(20,045	)			5,685				(32,224	)			(8,577	)
Deferred contract costs		(4,782	)			(2,407	)			(10,894	)			(6,045	)
Prepaid expenses and other current assets		2,730				823				(9,476	)			(746	)
Other assets		(4,451	)			(984	)			(8,480	)			(4,939	)
Accounts payable		(3,260	)			1,250				4,213				4,814
Accrued expenses and other liabilities		6,611				3,813				(1,990	)			6,320
Deferred revenue		16,554				(2,690	)			51,096				19,352
Net cash provided by operating activities		3,824				4,749				6,804				15,384
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(4,834	)			(1,657	)			(9,813	)			(8,205	)
Capitalized software development costs		(2,650	)			(1,953	)			(7,058	)			(4,540	)
Cash paid for acquisition of businesses;net of cash acquired		—				(1,618	)			—				(1,618	)
Net cash used in investing activities		(7,484	)			(5,228	)			(16,871	)			(14,363	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		2,109				2,757				7,306				6,833
Proceeds from initial public offering, net of underwriting discounts and commissions and other offering costs		708,815				—				708,659				—
Net cash provided by financing activities		710,924				2,757				715,965				6,833
Effect of exchange rate changes on cash and cash equivalents		72				(11	)			49				13
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		707,336				2,267				705,947				7,867
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period		63,591				69,378				64,980				63,778
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period	$	770,927			$	71,645			$	770,927			$	71,645
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE:
Cash and cash equivalents	$	760,945			$	64,003			$	760,945			$	64,003
Restricted cash – Including amounts in prepaid expense and other current assets and other assets		9,982				7,642				9,982				7,642
Total cash, cash equivalents and restricted cash	$	770,927			$	71,645			$	770,927			$	71,645

Reconciliation from GAAP to Non-GAAP Results (In thousands, except per share data;unaudited)
	Three Months								Nine Months
	Ended September 30,								Ended September 30,
	2019				2018				2019				2018
Reconciliation of gross profit and gross margin
GAAP gross profit	$	72,567			$	38,976			$	185,911			$	105,777
Plus: Stock-based compensation expense		161				74				372				182
Plus: Amortization of acquired intangibles		179				112				531				332
Non-GAAP gross profit	$	72,907			$	39,162			$	186,814			$	106,291
GAAP gross margin		76	%			76	%			75	%			78	%
Non-GAAP gross margin		76	%			77	%			75	%			78	%
Reconciliation of operating expenses
GAAP research and development	$	28,684			$	14,159			$	75,531			$	37,456
Less: Stock-based compensation expense		1,934				387				3,709				931
Less: Non-cash benefit related to a one-time tax adjustment		—				—				(2,344	)			—
Non-GAAP research and development	$	26,750			$	13,772			$	74,166			$	36,525
GAAP sales and marketing	$	38,836			$	25,130			$	105,061			$	59,747
Less: Stock-based compensation expense		1,540				522				3,276				1,241
Less: Non-cash benefit related to a one-time tax adjustment		—				—				(397	)			—
Non-GAAP sales and marketing	$	37,296			$	24,608			$	102,182			$	58,506
GAAP general and administrative	$	9,265			$	4,322			$	23,193			$	12,933
Less: Stock-based compensation expense		1,042				325				2,659				697
Less: Non-cash benefit related to a one-time tax adjustment		—				—				(2,266	)			—
Non-GAAP general and administrative	$	8,223			$	3,997			$	22,800			$	12,236
Reconciliation of operating income (loss) and operating margin
GAAP operating loss	$	(4,218	)		$	(4,635	)		$	(17,874	)		$	(4,359	)
Plus: Stock-based compensation expense		4,677				1,308				10,016				3,051
Plus: Amortization of acquired intangibles		179				112				531				332
Plus: Non-cash benefit related to a one-time tax adjustment		—				—				(5,007	)			—
Non-GAAP operating income (loss)	$	638			$	(3,215	)		$	(12,334	)		$	(976	)
GAAP operating margin		-4.4	%			-9.1	%			-7.2	%			-3.2	%
Non-GAAP operating margin		0.7	%			-6.3	%			-5.0	%			-0.7	%
Reconciliation of net income (loss)
GAAP net loss	$	(4,161	)		$	(4,673	)		$	(17,601	)		$	(4,175	)
Plus: Stock-based compensation expense		4,677				1,308				10,016				3,051
Plus: Amortization of acquired intangibles		179				112				531				332
Plus: Non-cash benefit related to a one-time tax adjustment		—				—				(5,007	)			—
Non-GAAP net income (loss)	$	695			$	(3,253	)		$	(12,061	)		$	(792	)
Net income (loss) per share - basic	$	0.01			$	(0.04	)		$	(0.14	)		$	(0.01	)
Net income (loss) per share - diluted	$	0.00			$	(0.04	)		$	(0.14	)		$	(0.01	)
Shares used in non-GAAP per share calculations:
Basic		103,876				73,353				87,758				69,708
Diluted		285,397				73,353				87,758				69,708

Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow (In thousands;unaudited)
	Three Months								Nine Months
	Ended September 30,								Ended September 30,
	2019				2018				2019				2018
Net cash provided by operating activities	$	3,824			$	4,749			$	6,804			$	15,384
Less: Purchases of property and equipment		(4,834	)			(1,657	)			(9,813	)			(8,205	)
Less: Capitalized software development costs		(2,650	)			(1,953	)			(7,058	)			(4,540	)
Free cash flow	$	(3,660	)		$	1,139			$	(10,067	)		$	2,639

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