FEBRUARY 12, 2026 Strategy, innovation, Datadog platform and product Q&A Safe Harbor This presentation and the accompanying oral presentation have been prepared by Datadog, Inc. ("Datadog" or the "company") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or Datadog or any officer, director, employee, agent or advisor of Datadog. This presentation does not purport ...

Core Viewpoint - Datadog's stock has risen 15% over the past five days following strong Q4 and full-year 2025 earnings, along with a positive outlook for 2026, leading to investor optimism [1] Company Overview - Datadog is a cloud-based observability and security platform that provides a comprehensive suite of software-as-a-service (SaaS) tools for monitoring infrastructure, application performance, log management, user experience, and cloud security [2] Recent Developments - Over the past year, Datadog has integrated artificial intelligence (AI) into its operations, launching new tools to meet the growing demand for cloud security, including the Bits AI Agents for SRE, which assists in alert management and incident response [3] - The company enhanced its LLM Observability platform with new AI monitoring features and released its MCP server to facilitate AI agents' connection to data sources, along with introducing Toto, its time-series foundation model [4] Financial Performance - Datadog reported Q4 revenue of $953 million, reflecting a 29% year-over-year increase, driven by strong demand for its cloud and AI products, surpassing Wall Street's expectations [7] - The company's current market capitalization is approximately $44.6 billion, although shares have decreased by about 17% over the past 52 weeks [5]

Core Insights - MongoDB (MDB) and Datadog (DDOG) are key players in the cloud software sector, with MongoDB focusing on flexible database solutions and Datadog on observability and monitoring tools [1][8] - The global cloud infrastructure services market is expected to grow from $254.59 billion in 2026 to $545.03 billion by 2031, driven by cloud migration and AI workloads [2] MongoDB (MDB) Insights - MongoDB's growth is fueled by its Atlas offering, which accounts for 75% of total revenues, reflecting a shift towards consumption-based models [4][6] - The platform's document-oriented architecture allows for better handling of unstructured data, making it suitable for AI applications [5] - MongoDB serves over 70% of the Fortune 100 and has a customer base exceeding 62,500, indicating strong market penetration [6] - The Zacks Consensus Estimate for MDB's fiscal 2027 EPS is $5.61, suggesting a year-over-year growth of 17.23% [7] Datadog (DDOG) Insights - Datadog provides a unified platform for observability but faces challenges due to market commoditization and limited differentiation in AI workloads [8][10] - The company serves over 32,700 customers and has over 1,000 integrations, but its AI capabilities are more about enhancing existing processes rather than creating new applications [11] - The Zacks Consensus Estimate for DDOG's 2027 EPS is $2.74, indicating a year-over-year growth of 20.93% [12] Price Performance and Valuation - Over the past six months, MongoDB shares have increased by 75.7%, while Datadog shares have decreased by 1.1%, highlighting MongoDB's stronger market performance [13] - MongoDB trades at a forward price-to-sales ratio of 10.27x, compared to Datadog's 10.75x, suggesting a relative discount for the faster-growing MongoDB [16] - The valuation premium for Datadog is difficult to justify given the commoditization of the observability market [16] Conclusion - MongoDB's growth trajectory and its role as an operational database for AI applications position it favorably against Datadog, which is facing challenges in a commoditized market [18] - Investors looking for high-growth cloud software opportunities with AI potential may find MongoDB to be the superior investment choice [18]

Core Insights - Datadog (DDOG) reported strong fourth-quarter 2025 results with revenues of $953.19 million, reflecting a 29% year-over-year growth, exceeding the Zacks Consensus Estimate by 4.22% [1] - Adjusted earnings per share were 59 cents, surpassing the consensus estimate by 7.27% [1] Financial Performance - The company achieved record bookings of $1.63 billion, marking a 37% annual increase [2] - For first-quarter 2026, management guided revenues between $951 million and $961 million, indicating a year-over-year growth of 25% to 26% [3] - Full-year 2026 revenue guidance is set at $4.06 billion to $4.10 billion, suggesting a growth deceleration to 18% to 20% compared to 28% growth in 2025 [3] - The Zacks Consensus Estimate for 2026 earnings is $2.27 per share, reflecting a 10.73% year-over-year increase [4] - Projected non-GAAP operating income for 2026 is between $840 million and $880 million, with non-GAAP earnings per share expected to be in the range of $2.08 to $2.16 [5] Operating Expenses and Margins - Datadog's non-GAAP operating margin was approximately 23.4% in the fourth quarter, but full-year net income declined to $107.74 million despite revenue growth [6] - The company continues to invest heavily in research and development, which may pressure operating margins in the near term [6] Competitive Landscape - Datadog faces increasing competition in the observability market, with established vendors like IBM and Dynatrace intensifying their efforts [12] - The company's forward 12-month price-to-sales (P/S) ratio is around 10.75x, significantly higher than the industry average of 4.02x, indicating that anticipated growth is already priced in [13] Conclusion - Despite a strong fourth-quarter performance, Datadog's decelerating growth guidance, rising expenses, and stretched valuation present challenges for investors [17]

Core Insights - Datadog Inc. reported strong Q4 2025 results with revenue increasing 29% year-over-year to $953 million, surpassing its guidance of $912-916 million, and Q4 EPS of $0.59 exceeded the consensus of $0.55 [1] - The company provided guidance for Q1 2026 and FY 2026 revenue growth of 25% and 19%, respectively, which positively impacted investor sentiment, leading to a nearly 14% increase in share price post-results [1] Analyst Ratings and Price Targets - UBS analysts reduced their price target for Datadog from $225 to $195, a decrease of slightly over 13%, while maintaining a Buy rating [2] - KeyBanc Capital Markets also lowered its price target from $170 to $155 but kept its Overweight rating [2] - Analyst estimates have been mixed post-results, with some firms lowering their price targets while others, like TD Cowen and Needham, raised or maintained theirs, with over 90% of analysts assigning a Buy or Equivalent rating [4] Market Position and Competition - Investor sentiment is divided regarding Datadog, with positive views on product innovation and leadership in observability, but concerns about pricing pressure from competitors like Palo Alto Networks and potential churn related to OpenAI [3] - Datadog's strong Q4 performance reinforces its position in AI observability despite increasing competition in the market [4] - The company provides observability services for cloud-scale applications, utilizing machine learning for real-time monitoring and analytics [5]

Group 1 - Datadog, Inc. (DDOG) has experienced a decline in stock price over the last few months, attributed to market fears surrounding AI, but the company faces a more significant issue regarding its valuation [1] - The AI-based SaaS monitoring platform is currently priced for perfection despite the recent dip in stock price [1] - Stone Fox Capital, an RIA from Oklahoma, is led by Mark Holder, who has extensive experience in investing and portfolio management [1] Group 2 - The investing group Out Fox The Street provides stock picks and deep research aimed at uncovering potential multibaggers while managing portfolio risk through diversification [1] - Features of Out Fox The Street include model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and community chat access [1]

Group 1 - Datadog, Inc. (DDOG) has experienced a decline in recent months, attributed to market fears surrounding AI, but the company faces a more significant issue regarding its valuation [1] - The AI-based SaaS monitoring platform is currently priced for perfection despite the recent dip in stock price [1] - Stone Fox Capital, an RIA from Oklahoma, is led by Mark Holder, who has extensive experience in investing and portfolio management [1] Group 2 - Mark Holder leads the investing group Out Fox The Street, which provides stock picks and in-depth research to help investors identify potential multibaggers while managing portfolio risk through diversification [1] - The features of Out Fox The Street include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat [1]

Core Viewpoint - Datadog Inc. is a significant player in the cloud-based monitoring and analytics sector, providing essential tools for businesses to optimize IT operations, competing with major companies like Splunk and New Relic [1] Financial Performance - Datadog reported Q4 2025 revenue of $953 million, marking a 29% increase year-over-year and exceeding the consensus estimate of $916.5 million by 4% [2][5] - Scotiabank has set a price target of $160 for Datadog, indicating a potential upside of 27.53% from its trading price of $125.47 at the time [2][5] Stock Performance - Datadog's stock is currently trading at $124.67, reflecting a decrease of 3.86% or $5 from the previous session, with fluctuations between a low of $122.31 and a high of $131.38 on the same day [3] - Over the past year, the stock has experienced significant volatility, with a high of $201.69 and a low of $81.63 [3] Market Position - The company's market capitalization is approximately $43.72 billion, indicating a strong presence in the tech industry [4] - The trading volume today is 4,238,612 shares on the NASDAQ, demonstrating active investor interest in Datadog [4][5]

Core Insights - Datadog Inc. (NASDAQ:DDOG) experienced a significant stock price increase of 13.74% to close at $129.67, following strong revenue performance for the full year and fourth quarter of 2025 [1][7]. Financial Performance - For the full year 2025, Datadog's revenues surged by 27% to $3.4 billion, up from $2.68 billion in 2024, while fourth-quarter revenues increased by 29% to $953 million from $737.7 million year-on-year [2]. - Net income for the year declined by 41% to $107.7 million from $183.7 million in 2024, although fourth-quarter net profit rose by 2% to $46.6 million from $45.6 million year-on-year [2]. Future Projections - Datadog is targeting revenues between $951 million to $961 million for the upcoming quarter, with earnings per share (EPS) projected at $0.49 to $0.51 [3]. - For the full year 2026, revenues are expected to be between $4.06 billion to $4.1 billion, with EPS estimated at $2.08 to $2.16 [3]. Strategic Focus - The CEO of Datadog, Olivier Pomel, expressed excitement about the company's plans to deliver more AI-powered innovations to assist customers with complex challenges in various areas including Observability, Security, Software Delivery, Service Management, and Product Analytics [4].

Core Viewpoint - Datadog, Inc. (NASDAQ:DDOG) is recognized as one of the 10 trending AI stocks, with analysts noting strong execution and favorable AI trends despite cautious guidance from the company [1]. Financial Performance - Datadog reported a Q4 revenue growth of 29%, surpassing both guidance and consensus expectations, with operating margins at 24.1% [2]. - The revenue growth was primarily driven by increased demand for cloud migration and digital transformation, supported by higher customer usage [2]. Customer Growth - The total customer count increased by 700, reaching 32.7k in Q4, with cloud migration and digital transformation initiatives continuing to drive demand, alongside contributions from AI-native customers [3]. Future Outlook - Large deal activities in the quarter resulted in a significant surge in bookings. Although management's FY26 revenue growth guidance of 18.5% to 19.6% appears conservative, confidence remains in Datadog's growth trajectory and market expansion efforts [4].