Datadog reports 35% revenue growth as large customer base expands

Datadog reported third-quarter revenue of $1.20 billion, up 35%, as businesses expanded use of its platform for monitoring digital systems and securing infrastructure. Customers generating annual recurring revenue of at least $100,000 increased 20% to approximately 4,860 from approximately 4,060 a year earlier. The company generated $290 million in operating cash flow and $251 million in free cash flow. GAAP operating income was $75 million, a 6% margin, compared with non-GAAP operating income of $334 million and a 28% adjusted margin. Datadog also introduced Scout 1.0, a model designed to investigate production incidents through its Bits Investigation functionality. The model remains in preview.