Datadog IPO’d at $330m ARR, and when we last caught up with them they were already at $700m ARR — and it has done nothing but accelerate since then.  Closing out with a $270m Q3’21 (!) and on to a $1.2B+ run-rate today, Datadog is accelerating at over $1B ARR.  To 75% growth.  Goodness.

We just haven’t seen the type of acceleration at scale we’re seeing in SaaS leaders before.

5 Interesting Learnings:

#1. 1,800 customers with ARR of $100,000 or more, a year-over-year increase of 66% from 1,082.  $100k+ customers are key to ARR growth.  Datadog isn’t leaving the smaller customers behind, but they are increasingly a smaller percentage of revenue.  $100k+ customers have gone from 50% of revenue in 2016 to almost 80% today:

#2.  More product, more products, more products.  10 new products this year.  Almost all the Cloud leaders accelerating after $100m ARR, let alone $1B ARR, are multi-product.

#3.  In 2018, most Datadog customers used 1 product.  Today, most Datadog revenue comes from customers that use 4+ products.  This is one of the top keys to Datadog’s almost unprecedented growth.  28% of Datadog’s customers use 4+ products, but they make up the vast majority of revenue:

And 75% use 2 or more products, up from just 15% in 2018:

#4.  Customers don’t buy all the products at first.  Datadog earns customer trust, then expands products customers buy from them:

#5.  130%+ NRR for 16 quarters — and GRR going up to 95%.  A reminder there is no ceiling to top tier NRR in SaaS and Cloud.

And a few bonus notes:

#6. 450+ integrations.  You know this, but doing “all the integrations” can be a killer winning strategy.

#7.  From 2 $1m ARR customers in 2016 to 145 today.  Datadog has steadily marched upmarket, but not abruptly.

#8.  A classic self-service + inside sales + enterprise sales model.  Datadog may have revolutionized observability and other categories, but it didn’t change how you set up a sales team.  Its smallest customers self-serve.  The ones up to $50k-$100k go through inside sales.  And a dedicated enterprise team handles the largest ones.  Just like almost all the rest of SaaS companies pretty much with similar price points and offerings. 😉

And a great look back at Datadog just before its IPO:

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