Datadog, Inc.

and to the Q4 2024 Datadog Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Yuka Broderick, Senior Vice President of Investor Relations. Please go ahead.

Thank you, Daniel. Good morning, and thank you for joining us to review Datadog's fourth quarter 2024 financial results, which we announced in our press release issued this morning. Joining me on the call today are Olivier Pomel, Datadog's co-founder and CEO, and David Obstler, Datadog's CFO. During this call, we will make forward-looking statements, including statements related to our future financial performance, our outlook for the first quarter and the fiscal year 2025, and related notes and assumptions, our gross margins and operating margins, our product capabilities, our ability to capitalize on market opportunities, and usage optimization trends. The words anticipate, believe, continue, estimate, expect, intend, will, and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. These statements reflect our views only as of today and are subject to a variety of risks and uncertainties that could cause actual results to differ materially. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our Form 10-Q for the quarter ended September 30, 2024. Additional information will be made available in our upcoming Form 10-K for the fiscal year ended December 31, 2024 and other filings with the SEC. This information is also available on the investor relations section of our website along with a replay of this call. We will also discuss non-GAAP financial measures which are reconciled to their most directly comparable GAAP financial measures in the tables in our earnings release, which is available at investors.datadoghq.com. With that, I'd like to turn the call over to Olivier.

Thank you, Kat, and thank you all for joining us this morning. We had a strong Q4 to end a very productive year. During 2024, We kept building and innovating as we scaled up our teams and went broader and deeper into the problems we saw for our customers from the cloud to AI. We continued to add new customers and expand with existing ones, and we delivered more value as customers adopted more products into Datadog platform. Let me start with a review of our Q4 financial performance. Revenue was $738 million, an increase of 25% year over year, and above the high end of our guidance range. We ended with about 30,000 customers, up from about 27,300 a year ago. We ended Q4 with about 3,610 customers with an ARR of $100,000 or more, up from about 3,190 a year ago. These customers generated about 88% of our ARR. We had 462 customers with ARR of $1 million or more, compared to 396 a year ago.