Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| It's about us injecting AI into our own product so we can deliver better outcomes for our customers |
| As far as what might happen next, we think that group is positioned well, having gone through that optimization under the right economic conditions to be in the grow again |
| And of course, we said all along that we've been pretty solid and pretty good in terms of new logos across the board, SMB to enterprise throughout |
| So that -- these are the 2 positive to customer base to Datadog's performance |
| So I think we have good success in getting in front of those companies, still plenty more opportunity, but we have good success there |
| On the top-down side, we actually have been building very successfully an enterprise Salesforce that covers the world and I think now it's way near 7 or 8 of this team having success and scale |
| So we feel very good about that, and that was more of confirmation |
| We're really excited about the opportunity in front of the company |
| And what we've seen, and I think there's some case studies in the Investor Day to refer back to -- we've seen the benefits include faster remediation, therefore, less revenue loss, greater development and operation efficiency because the platform makes sense of everything and they can remediate more quickly, less alert fatigue, et cetera |
| So that's some evidence that this kind of effort of working with our clients to prove value and to grow with them is successful |
| So Oli, we're coming off another successful year for Datadog |
| And as you said, then you have a much higher ARPU for that customer and much more -- greater opportunity for growth |
| And in fact, in Q4, we said they net-net grew again, even at a higher rate than our overall customer base |
| Everything in one of those deals where customers go from 10 products to using us, it also involves an immediate, very visible cost saving |
| We're optimistic |
| Sanjit Singh So far, in this conversation, we've talked about strong opportunity in cloud observability, security set up well |
| The good news is that, that usage is growing quickly |
| So it's always a great first product to have it with our customers |
| I think Oli mentioned how important it was to get through this period and to be able to have a high gross retention because that means we're going to continue to grow with the customers |
| So we -- I think we're on the journey there, but we -- so far, we are well on the right path, I would say |
| Wrapping up near-term conversation, you came off a solid Q4, grew 26% |
| I would say there's also a big advantage of being a platform that covers a large number of use cases for them for that because going into a year with us, they don't need to understand ahead of time know how much monitoring they need versus how many logs versus how much APM, all that's fungible afterwards, and we can build the right feedback loops and have them address that over time, which is value they don't get when they have 5 different vendors |
| And so if that accelerates, you'll see the net retention accelerate and more acceleration of growth that gets all back to where the clients are in their optimization and then their deployment of new |
| But what we've seen is that we have more success when we tried to broaden -- open the aperture for our products as opposed to -- which means making the product accessible to all customers who -- the whole Salesforce as opposed to constraining it by targeting specific customers and limiting the selling to a small subset of the Salesforce |
| And I think there's a lot of evidence that, that was successful and it's happening in our comments around RPO |
| So that's a good sign that, that group has a better sense of what their business is, and where they want to invest |
| It became extremely important in the past year to demonstrate this immediate cost savings |
| And as we've talked about, there's -- in the enterprise, and a lot of other areas, they are much earlier in their cloud journey and we see them as a leading growth in terms of returning to deployment of digital applications and investing in observability |
| We've learned our lesson |
| What do you expect customers will find attractive about these SKUs? And can these packages be the catalyst to unlike better monetization of the company's securities offerings |
| Statement |
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| And just for the record, I want to say, the market was already bad before we started speaking |
| What is created by removing it feedback loop is that we had [indiscernible] unsustainable growth of usage of those customers and that always hits the head later on |
| I think the worry is that maybe in a given year, a high bill or "sticker shock" gets some of these customers leaves a sour taste in their mouth |
| But we've been going through a sort of tech downturn, I guess, over the last several quarters |
| We're not doing that |
| I would say the one thing that we keep in mind, especially as we said guidance for the year and the future is that we do not fully control the base rate of migration into the cloud in terms of real volume of compute units that are being deployed or gigabytes that are being sent to the cloud |
| That's not like we're going in the direction right now |
| There was less volume last year as customers were also trying to optimize their spend |
| That being said, as I said, we were pragmatic |
| It's still early, but what we've seen in just a few months of having those new SKUs out is that they seem to actually resonate quite a bit |
| But at that point, you have embedded in the workflows of the DevOps world and it becomes difficult not to have it |
| I think we said in our last couple of earnings calls, that group of highly scaled cloud natives, which were the most intensive optimizers had begun to stabilize |
| I would say, though, we're very careful about, and we've learned not to artificially try and make the problem go away |
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