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DDOGDatadog

Technology · Software · Nasdaq

Datadog is the AI-powered observability and security platform for cloud applications. 10-K, Item 1

Employees
8,100
Headquarters
New York, NY
CEO
Olivier Pomel
Next results
around Feb 9, 2027
Compare with peers → Embed

10-K 0001628280-26-008819 (2026-02-18) vs 10-K 0001561550-25-000025 (2025-02-20)

SectionCompared textWords nowChanged
Risk FactorsItem 1A22,195 5.6%
MD&AItem 75,715 9.0%
Legal ProceedingsItem 3, via Note 9 – Commitments and Contingencies333 13.7%
Accounting PoliciesItem 8, Note 2 – Basis of Presentation and Summary of Significant Accounting Policies4,532 9.6%

The redline: what was cut and what was added

In each section, the paragraph that changed most, marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Risk Factors 139 words changed in this paragraph; it is 72% similar to last year's version.
Our platform and products involve the storage and transmission of data, including personal information, and security breaches or unauthorized access to our platform and products, or those of the third-parties with whom we work, could result in the unauthorized, unlawful, or accidental acquisition, modification, destruction, loss, alteration, encryption, disclosure of, or access to sensitive information including our customers' data. Consequently, we may be subject to significant litigation, indemnity obligations, fines, penalties, disputes, investigations and other liabilities. We have previously and may in the future become the target of cyber-attacks by third parties, including without limitation nation-state actors, seeking to gain unauthorized access to and exfiltrate our or our customers’ data, including confidential and personal information, or to disrupt our ability to provide our services. Cyber-attacks, computer malware, viruses, employee mistakes or malfeasance, social engineering (including through deep fakes and spear phishing), malicious code, denial-of-service attacks, credential harvesting and general hacking have become more prevalent in our industry, particularly against cloud services, and have become enhanced or facilitated by artificial intelligence. Ransomware attacks, including those from organized criminal threat actors, nation-states and nation-state supported actors, are prevalent and can lead to significant interruptions, delays, or outages in our operations, loss of data (including customer data), loss of income, significant extra expenses to restore data or systems, reputational loss and the diversion of funds. To alleviate the financial, operational and reputational impact of a ransomware attack it may be preferable to make extortion payments, but we may be unwilling or unable to do so (including, for example, if applicable laws or regulations prohibit such payments). In addition, many of our employees work remotely and utilize network connections, computers and devices outside our premises or network, which may pose additional data security risks (including, for example, the increasing number of phishing and malicious emails we continue to receive). The reliability and continuous availability of our platform is critical to our success.

Source: Item 1A, 10-K 0001628280-26-008819 vs Item 1A, 10-K 0001561550-25-000025

MD&A 120 words changed in this paragraph; it is 64% similar to last year's version.
We have also issued long-term debt to finance our business. In June 2020 and December 2024, we issued $747.5 million aggregate principal amount of the 2025 Notes and $1.0 billion aggregate principal amount of the 2029 Notes, respectively, Notes in a private placements placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The total net proceeds from the sale of the 2025 Notes and the 2029 Notes, after deducting the initial purchasers’ discounts and debt issuance costs, were approximately $730.2 million and $979.1 million, respectively. million. The principal and future interest payments related to our 2025 Notes and 2029 Notes are $635.9 million and $1.0 billion, respectively. We used $196.8 million of the net proceeds from the offering of the 2029 Notes to repurchase approximately $112.0 million in aggregate principal amount of the 2025 Notes, including accrued and unpaid interest, in privately negotiated transactions. In connection with the partial retirement of the 2025 Notes, we entered into a termination agreement relating to a number of options corresponding to the number of 2025 Notes retired. We received approximately $54.7 million in connection with such termination agreements. billion. We may from time to time seek to retire or purchase our 2025 Notes or the 2029 Notes, through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise.

Source: Item 7, 10-K 0001628280-26-008819 vs Item 7, 10-K 0001561550-25-000025

Accounting Policies 70 words changed in this paragraph; it is 66% similar to last year's version.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU No. 2023-09”), which intends to increase the transparency of income tax disclosures, particularly disclosures. Under the new guidance, entities must categorize and provide greater disaggregation of information in the rate reconciliation table and disclosures about reconciliation. They must also further disaggregate income taxes paid. For public business entities, it is effective for annual periods beginning after December 15, 2024, and interim periods beginning after December 15, 2025, with early adoption permitted. The Company has not early adopted ASU No. 2023-09 as of this standard on a prospective basis in its consolidated financial statements for the year ended December 31, 2024 and is evaluating its impact. 2025. Refer to Note 14, Income Taxes, to the consolidated financial statements for further details.

Source: Item 8, Note 2 – Basis of Presentation and Summary of Significant Accounting Policies, 10-K 0001628280-26-008819 vs Item 8, Note 2 – Basis of Presentation and Summary of Significant Accounting Policies, 10-K 0001561550-25-000025

Legal Proceedings 34 words changed in this paragraph; it is 85% similar to last year's version.
Indemnification—The Company enters into indemnification provisions under some agreements with other parties in the ordinary course of business, including business partners, investors, contractors, customers, and the Company’s officers, directors and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claim because of the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in the Company’s consolidated statements of operations in connection with the indemnification provisions have not been material.

Source: Item 3, via Note 9 – Commitments and Contingencies, 10-K 0001628280-26-008819 vs Item 3, via Note 9 – Commitments and Contingencies, 10-K 0001561550-25-000025

Every change, by type

Sentences and paragraphs of DDOG's Risk Factors and MD&A, 10-K 2026-02-18 against 10-K 2025-02-20. Each links to the text at sec.gov.

Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier (may, could, will, not, significant, material…). A year or date rolling forward is not counted.

The full word listadverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would

AddedRisk Factors
Certain jurisdictions impose regulatory obligations focused on cybersecurity resilience, system availability, and incident response. For example, in the European Union, the Network and Information Security Directive (EU) 2022/2555 (“NIS2”), and in the United Kingdom, the Network and Information Systems Regulations 2018, establish requirements related to risk management, security incident reporting, and business continuity for certain entities. Failure to comply with these frameworks may result in significant administrative fines, enforcement actions, and operational restrictions.

Read it in 10-K 2026-02-18 at sec.gov ↗

AddedRisk Factors
•potential changes in trade relations, sanctions, regulations, or laws including changes in trade policies, such as trade wars, tariffs or other trade restrictions or the threat of such actions;

Read it in 10-K 2026-02-18 at sec.gov ↗

RemovedRisk Factors
originating from the EEA, we may find it necessary to establish additional systems and processes to maintain such data in the EEA, which may involve substantial expense and distraction from other aspects of our business.

Read it in 10-K 2025-02-20 at sec.gov ↗

RemovedRisk Factors
We use open source software in our products and we expect to continue to incorporate open source software in our services in the future. Few of the licenses applicable to open source software have been interpreted by courts, and there is a risk that these licenses could be construed in a manner that could impose unanticipated conditions or restrictions on our ability to commercialize our products. Moreover, we cannot ensure that we have not incorporated additional open source software in our software in a manner that is inconsistent with the terms of the applicable license or our current policies and procedures. If we

Read it in 10-K 2025-02-20 at sec.gov ↗

RewordedRisk Factors
While we utilize a data center in the EEA to maintain certain customer data (which may include personal information) originating from the EEA, we may find it necessary to establish additional systems and processes to maintain such data in the EEA, which may involve substantial expense and distraction from other aspects of our business.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
In addition, because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation Law, which generally, subject to certain exceptions, prohibits a Delaware corporation from engaging in any of a broad range of business combinations with any “interested” stockholder for a period of three years following the date on which the stockholder became an “interested” stockholder.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
If our quarterly results of operations fall below the expectations of investors and securities analysts who follow our stock, the price of our Class A common stock could decline substantially, and we could face costly lawsuits, including securities class action suits.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
For example, Brazil enacted the General Data Protection Law, New Zealand enacted the New Zealand Privacy Act, Australia enacted the Australia Privacy Act, China enacted its Personal Information Protection Law, Canada introduced has enacted the Digital Charter Implementation Act Personal Information Protection and Electronic Documents Act, and various related provincial laws and India enacted the Information Technology Act.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
We have fully utilized all Certain of our existing these NOLs for federal income tax purposes, other than certain NOLs of are attributable to entities that we have acquired, acquired which are subject to annual limitation under Section 382 of the Internal Revenue Code of 1986, as amended, or the Code, as discussed below.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
The capped call transactions cover, subject to customary adjustments (which, in the case of the capped call transactions entered into in connection with the 2029 Notes, are substantially similar to those applicable to the 2029 Notes), Notes, the number of shares of our Class A common stock that initially underlie the applicable series of 2029 Notes.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
Unfavorable conditions in the economy both in the United States and abroad, including conditions resulting from changes in gross domestic product growth in the United States or abroad, changes in trade policies, such as trade wars, tariffs or other trade restrictions or the threat of such actions, financial and credit market fluctuations, fluctuating inflation and interest rates, international trade relations, political turmoil, natural catastrophes, outbreaks of contagious diseases, warfare and terrorist attacks on the United States, Europe, the Asia Pacific region or elsewhere, such as the war conflicts in Ukraine and conflicts in the Middle East, could cause a decrease in business investments, including spending on information technology, disrupt the timing and cadence of key industry events, and negatively affect the growth of our business and our results of operations.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
For example, if we elect to settle our conversion obligation under our 0.125% Convertible Senior Notes due 2025, or our 2025 Notes, or our 0.00% Convertible Senior Notes due 2029, or the 2029 Notes and together with the 2025 Notes, the Notes, in each case, in shares of our Class A common stock or a combination of cash and shares of our Class A common stock, the issuance of such Class A common stock may dilute the ownership interests of our stockholders and sales in the public market could adversely affect prevailing market prices.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
The regulatory framework for and users' expectations around privacy and security issues worldwide is rapidly evolving and as a result, implementation standards and enforcement practices are likely to remain uncertain for the foreseeable future resulting in possible significant operational costs for compliance and risk to our business.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
For example, in prior periods customers in our cloud-native cohort, and more recently larger customers in our AI-native cohort, which cohort includes our largest customer and represented approximately five seven percentage points of our year-over-year revenue growth for the quarter ended December 31, 2024, 2025, have rapidly increased their usage of our product and then optimized or may in the future optimize their usage. usage or fail to renew their subscriptions.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedRisk Factors
In addition, Europe and other jurisdictions have enacted laws related to data localization laws and storage location, cross-border personal data transfer laws. transfers, and data portability.

Read it in 10-K 2026-02-18 at sec.gov ↗

Quiet changesRisk Factors
Laws in all 50 states require businesses to provide notice to customers whose personal information has been disclosed as a result of a certain data breach. breaches.

Read it in 10-K 2026-02-18 at sec.gov ↗

Quiet changesRisk Factors
The CCPA provides a private right of action and statutory damages for certain data breaches and may increase our compliance costs and potential liability with respect to other personal information we collect about California residents.

Read it in 10-K 2026-02-18 at sec.gov ↗

RemovedMD&A
In December 2024, we completed a private offering of $1.0 billion aggregate principal amount of the 2029 Notes. The total proceeds from the 2029 Notes offering were approximately $979.1 million, net of $20.9 million of debt issuance costs.

Read it in 10-K 2025-02-20 at sec.gov ↗

RemovedMD&A
We used a portion of the net proceeds from the offering (i) to pay the $100.9 million cost of the privately negotiated capped call transactions relating to the 2029 Notes, or the Capped Calls and (ii) to repurchase for $196.8 million in privately negotiated transactions approximately $112.0 million in aggregate principal amount of the 2025 Notes, including accrued and unpaid interest.

Read it in 10-K 2025-02-20 at sec.gov ↗

RemovedMD&A
Usage is measured primarily by the number of hosts or by the volume of data indexed. A host is generally defined as a server, either in the cloud or on-premise. Our infrastructure monitoring, APM and network performance monitoring products are priced per host, our logs product is priced primarily per log events indexed and secondarily by events ingested. Customers also have the option to purchase additional products, such as additional container or serverless monitoring, custom metrics packages, anomaly detection, synthetic monitoring and app analytics.

Read it in 10-K 2025-02-20 at sec.gov ↗

RewordedMD&A
Additionally, as of December 31, 2024, 2025, approximately 50% 55% of our customers were using four or more than four products, up from approximately 47% 50% a year earlier, and earlier; approximately 26% 33% of our customers were using six or more than six products, up from approximately 22% 26% a year earlier; approximately 18% of our customers were using eight or more products, up from approximately 13% a year earlier; and approximately 9% of our customers were using ten or more products, up from 5% a year earlier.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
Net cash used in investing activities for the year ended December 31, 2024 2025 increased by $5.5 $597.6 million compared to the year ended December 31, 2023, 2024, primarily driven by an increase in the purchases of marketable securities of $95.2 million, a decrease in proceeds from the sale of marketable securities of $36.8 $946.6 million, an increase in the capitalization cash paid for acquisition of businesses, net of cash acquired of $110.9 million, an increase in capitalized software development costs of $26.0 $25.1 million, partially offset by and an increase in proceeds from maturities purchases of marketable securities property and equipment of $154.3 $14.9 million.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
We have grown rapidly in recent periods, with revenues for the fiscal years ended December 31, 2024, 2025, 2024 and 2023 and 2022 of $3,427.2 million, $2,684.3 million, and $2,128.4 million, and $1,675.1 million, respectively, representing year-over-year growth of 28% from the fiscal year ended December 31, 2024 to the fiscal year ended December 31, 2025 and 26% from the fiscal year ended December 31, 2023 to the fiscal year ended December 31, 2024 and 27% from the fiscal year ended December 31, 2022 to the fiscal year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
Net cash provided by financing activities for the year ended December 31, 2024 increased 2025 decreased by $728.8 $1,359.6 million compared to the year ended December 31, 2023, 2024, primarily due to the absence of proceeds from the issuance of the 2029 Notes of $978.9 million $979.1 million, higher repayments of the 2025 Notes of $438.8 million, and the absence of proceeds from the termination of Capped Calls related to the 0.125% Convertible Senior Notes 2025 Notes (the "2025 Notes"), together with the 2029 Notes, (the "Notes") of $54.7 million.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
The increase in cash provided by operating activities was partially offset by a decrease in deferred revenue of $33.4 million, a decrease an increase in accounts payable receivable of $32.2 million, $52.9 million and an increase in prepaid expenses and other current assets deferred contract costs of $13.1 $50.8 million.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
The increase decrease in cash provided by financing activities was partially offset by repayments the absence of the 2025 Notes of $196.8 million and purchases of Capped Calls related to the 2029 Notes of $100.9 million and proceeds from the issuance of common stock under the employee stock purchase plan of $13.1 million.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
Net cash provided by operating activities for the year ended December 31, 2024 2025 increased $210.6 $179.5 million compared to the year ended December 31, 2023, 2024, primarily driven by an increase in non-cash charges of $106.8 $215.4 million, an increase in deferred revenue of $75.7 million, and a increase in accrued expenses and other liabilities of $38.9 million, and a decrease in accounts receivable of $17.2 $54.5 million.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
For example, macroeconomic events including changes in trade policies, such as trade wars, tariffs or other trade restrictions or the threat of such actions, fluctuating inflation and interest rates, the Russian invasion of Ukraine, and the conflicts in Ukraine and the Middle East have led to economic uncertainty.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
Year Ended December 31, 2025 2024 2023 Change % Change (dollars in (in thousands) General and administrative $ 205,152 1,574 $ 180,192 $24,960 14% Percentage of revenue 8 % 8 % $

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
In June 2020 and December 2024, we issued $747.5 million aggregate principal amount of the 2025 Notes and $1.0 billion aggregate principal amount of the 2029 Notes, respectively, Notes in a private placements placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
Our gross margin remained flat decreased by 1% for the year ended December 31, 2024 2025 compared to the year ended December 31, 2023, 2024, primarily as the result of revenue growing increased in proportion to the growth of third-party cloud infrastructure provider costs.

Read it in 10-K 2026-02-18 at sec.gov ↗

RewordedMD&A
This increase was primarily due to an increase of $24.3 $58.2 million in personnel costs and other related costs as a result of increased headcount. headcount, and an increase of $10.4 million in legal and other professional services expenses.

Read it in 10-K 2026-02-18 at sec.gov ↗

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