BTIG Lifts Datadog (DDOG) PT to $169 on Strong Competitive Gains, New Product Success

Datadog Inc. (NASDAQ:DDOG) is one of the best growth stocks to buy and hold for 3 years. On July 25, BTIG raised its price target for Datadog to $169 from $136, while maintaining a Buy rating on the company’s stock. The adjustment is based on positive field checks that revealed encouraging competitive displacements and successful new product initiatives by Datadog.

In Q1 2025, the company reported revenue of $762 million, which was a 25% increase year-over-year. Free cash flow for the quarter was $244 million, with a free cash flow margin of 32%. Datadog’s customer base expanded to ~30,500 customers, up from about 28,000 a year ago. Notably, customers with an ARR of $100,000 or more increased to 3,770, up from about 3,340 a year ago, with these larger customers contributing around 88% of total ARR.

The company also saw an increase in large deals, signing 11 deals with a total contract value of $10 million or more in Q1, which was a substantial rise from just one in the same quarter last year. Datadog experienced strong growth in its AI-native customer cohort, which now accounts for 8.5% of Q1 ARR, up from 3.5% a year ago.

Datadog Inc. (NASDAQ:DDOG) is an observability and security platform for cloud applications in the US and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.