Datadog (DDOG) Q3 2025 Earnings Call Transcript

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• 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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