Topic: How To Invest

Q: What is TSI’s thinking on Datadog? Thanks in advance.

Article Excerpt

A: Datadog Inc., $47.04, symbol DDOG on Nasdaq (Shares outstanding: 288.8 million; Market cap: $13.6 billion; www.datadoghq.com), provides IT monitoring and analytics services. The Datadog platform monitors and analyzes traffic and usage patterns across servers, databases, tools, and services. Organizations of all sizes and in a wide range of industries rely on it. Headquartered in New York City, Datadog markets the platform to developers, information technology operations teams, and business users in North America (75% of revenue) and internationally (25%). All of the company’s revenue is from subscription software sales. Through an IPO, the company first offered shares to the public at $27 a share in September 2019. The stock opened for trading at $40.38 and rose as high as $50 in mid-February 2020. Datadog was founded in 2010 and began selling its monitoring and analyzing cloud-based applications in 2016. With the spread of cloud-based computing, the company’s revenues increased 96.5%, from $100.8 million in 2017 to $198.1 million in 2018. They then…