Datadog: 2Q Review: Usage-Led Acceleration Continues; Although Largest Customer Will Be a Watchpoint, Broader Drivers Remain Quite Robust; Reiterate OW

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

06 August 2026

Datadog

2Q Review: Usage-Led Acceleration Continues;

Although Largest Customer Will Be a Watchpoint,

Broader Drivers Remain Quite Robust; Reiterate OW

Overweight

DDOG, DDOG US

Price (05 Aug 26):$283.17

▼Price Target (Dec-27):$305.00

Prior (Dec-26):$320.00

Datadog’s results comprised of the typical beat that investors have come to expect

– in particular, with consumption / usage-based revenue drivers accelerating for

both core customers as well as AI-native customers. Despite the robust revenue

results, which supported a raise to full-year expectations for both revenue and

profit, the focus from the earnings call commentary was on the usage reduction that

the company has seen from its largest customer. This reduction is leading the

company to de-risk its outlook for 3Q, which now calls for only a modest singledigit sequential increase in revenue relative to the 11% sequential increase in 2Q

as well as the average high-single-digit percentage sequential increase in revenue

over the last 6 quarters. To reassure investors about the largest customer, the

company outlined that a renewal agreement has already been signed, which is

largely “similar” to the prior agreement. We believe the customer has typically

demonstrated usage well ahead of the committed usage as part of the agreement;

the reduction in usage recently is leading Datadog management to take a more

cautious view on future usage and leading them to de-risk the outlook by

incorporating only committed amounts from the customer into the outlook, which

presents a headwind to the growth rate for F3Q and F4Q on a y/y basis. While the

specific reasons for the reduction in usage from the largest customer will be tough

to decipher, it does give the management team the confidence in broad-based

growth drivers in the business, with the company highlighting that revenues

excluding the large customer expanded at a pace quite similar to the ~36% y/y

revenue growth reported in F2Q. In terms of fundamental drivers of growth, the

quarter marked several positives in relation to: 1) an acceleration in core (non AI

…