Datadog (DDOG) Set to Cross $3.5B ARR, Says Needham Analyst

Datadog, Inc. (NASDAQ:DDOG) is one of the AI Stocks On Wall Street’s Radar. On August 14, Needham analyst Jack Andrews reiterated a Buy rating on the stock with a $175.00 price target.

The firm anticipates Datadog’s Annual Recurring Revenue (ARR) to exceed $3.5 billion for the first time next quarter, “with growth in the Mid-/High-20%’s range.”

Three significant growth drivers continue to work for the company, which are Infrastructure Monitoring, APM Suite & Log Management.

“The company’s 3 core pillars, consisting of Infrastructure Monitoring, APM Suite & Log Management, continue to be more significant drivers of growth – collectively representing ~90% of Total ARR. But we highlight the importance of (1) Security Suite achieving $100 Million in ARR with mid-40%’s growth in 2QCY25; and (2) point investors to monitor new products such as Flex Logs (which we believe is growing materially above 100% yr-yr and likely to become Datadog’s 6th product to achieve the $100 Million ARR milestone following Synthetics and RUM), Database Monitoring, and Cloud Cost Management. We remain Buy-rated.”

Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.

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