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Datadog S-1

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31–40 of 101 posts

Re: Datadog S-1

#31
post #29

These are the two juiciest paragraphs for SaaS geeks: > We have a highly efficient go-to-market model, which consists of a self-service tier, a high velocity inside sales team, and an enterprise sales force. As of June 30, 2019, we had approximately 8,800 customers, increasing from approximately 7,700, 5,400 and 3,800 customers as of December 31, 2018, 2017 and 2016, respectively. Approximately 590 of our customers a…

Wow, this is such a crowded market that I'm really surprised just how much money they are making!

Reminded of this old tweet: https://twitter.com/patio11/status/936629780719419392

Re: Datadog S-1

#32

Their financials on the surface and the growth look really good. Congrats to the whole DataDog team on this! I used it in my previous job and loved it. I love how quick they were to add support for new things and how easy it was to configure everything. Since they are a SaaS startup which deals a lot with data and compute, I wanted to see their infra cost. I was looking through the consolidated financials[1] and I di…

Infra costs would roll up into COGS since they're variable costs. So the line item for Cost of Revenue captures that I believe. G&A is for fixed costs.

Re: Datadog S-1

#33

These are the two juiciest paragraphs for SaaS geeks: > We have a highly efficient go-to-market model, which consists of a self-service tier, a high velocity inside sales team, and an enterprise sales force. As of June 30, 2019, we had approximately 8,800 customers, increasing from approximately 7,700, 5,400 and 3,800 customers as of December 31, 2018, 2017 and 2016, respectively. Approximately 590 of our customers a…

I've had a different experience with them - difficulty with setup and tracking ability, including a much more resource intensive approach than newrelic for collecting execution traces. While trying to resolve this emails went unanswered until one of my co-workers reached out in the public spotlight of twitter.

Re: Datadog S-1

#34
Congrats to the whole Datadog team! I have been an avid user of it at a previous job and loved the product. Not surprised to see them have a solid business. When the product is good, people buy it.

Re: Datadog S-1

#35
post #32

Their financials on the surface and the growth look really good. Congrats to the whole DataDog team on this! I used it in my previous job and loved it. I love how quick they were to add support for new things and how easy it was to configure everything. Since they are a SaaS startup which deals a lot with data and compute, I wanted to see their infra cost. I was looking through the consolidated financials[1] and I di…

Infra costs would roll up into COGS since they're variable costs. So the line item for Cost of Revenue captures that I believe. G&A is for fixed costs.

Ah. Thanks, I somehow missed that.

Re: Datadog S-1

#36

Their financials on the surface and the growth look really good. Congrats to the whole DataDog team on this! I used it in my previous job and loved it. I love how quick they were to add support for new things and how easy it was to configure everything. Since they are a SaaS startup which deals a lot with data and compute, I wanted to see their infra cost. I was looking through the consolidated financials[1] and I di…

In this case, Infrastructure Cost is part of Cost of Revenue (similar to COGS or Cost of Goods Sold).

Cost of Revenue is defined on Page 61:

> Cost of revenue primarily consists of expenses related to providing our products to customers, including payments to our third-party cloud infrastructure providers for hosting our software, personnel-related expenses for operations and global support, including salaries, benefits, bonuses and stock-based compensation, payment processing fees, information technology, depreciation and amortization related to the amortization of acquired intangibles and internal-use software and other overhead costs such as allocated facilities.

> We intend to continue to invest additional resources in our platform infrastructure and our customer support and success organizations to expand the capability of our platform and ensure that our customers are realizing the full benefit of our platform and products. The level, timing and relative investment in our infrastructure could affect our cost of revenue in the future.

Cost of Revenue and infrastructure costs are discussed on Pages 64 and 65:

> Cost of revenue increased by $21.3 million, or 115%, for the six months ended June 30, 2019 compared to the six months ended June 30, 2018. This increase was primarily due to an increase of $17.9 million in third-party cloud infrastructure hosting and software costs, $1.0 million of depreciation and amortization, $1.6 million in personnel expenses as a result of increased headcount, $0.4 million of credit card processing fees and other fees, and $0.4 million in allocated overhead costs as a result of an increase in overall costs necessary to support the growth of the business and related infrastructure.

Tip: Search the S-1 for "infrastructure" or "cost of revenue" to find other mentions of this.

Re: Datadog S-1

#37

These are the two juiciest paragraphs for SaaS geeks: > We have a highly efficient go-to-market model, which consists of a self-service tier, a high velocity inside sales team, and an enterprise sales force. As of June 30, 2019, we had approximately 8,800 customers, increasing from approximately 7,700, 5,400 and 3,800 customers as of December 31, 2018, 2017 and 2016, respectively. Approximately 590 of our customers a…

I'd love to know their churn.

Re: Datadog S-1

#38

Their financials on the surface and the growth look really good. Congrats to the whole DataDog team on this! I used it in my previous job and loved it. I love how quick they were to add support for new things and how easy it was to configure everything. Since they are a SaaS startup which deals a lot with data and compute, I wanted to see their infra cost. I was looking through the consolidated financials[1] and I di…

In this case, Infrastructure Cost is part of Cost of Revenue (similar to COGS or Cost of Goods Sold). Cost of Revenue is defined on Page 61: > Cost of revenue primarily consists of expenses related to providing our products to customers, including payments to our third-party cloud infrastructure providers for hosting our software, personnel-related expenses for operations and global support, including salaries, benef…

Hey, thanks for that. I started reading through it and it seems like they are largely on AWS and have a $225 million 3 year commitment with them.

> The table does not reflect the enterprise agreement and addendum for cloud hosting that we entered into with AWS in April 2019, or the AWS Agreement. Under the AWS Agreement, we are required to purchase an aggregate of at least $225.0 million of cloud services from AWS through April 2022. Except in limited circumstances, such as our termination of the AWS Agreement for cause, if we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. Neither party may terminate the AWS Agreement for convenience during this three-year term. In addition to AWS, we operate on other cloud hosting providers.

Re: Datadog S-1

#40
post #33

These are the two juiciest paragraphs for SaaS geeks: > We have a highly efficient go-to-market model, which consists of a self-service tier, a high velocity inside sales team, and an enterprise sales force. As of June 30, 2019, we had approximately 8,800 customers, increasing from approximately 7,700, 5,400 and 3,800 customers as of December 31, 2018, 2017 and 2016, respectively. Approximately 590 of our customers a…

I've had a different experience with them - difficulty with setup and tracking ability, including a much more resource intensive approach than newrelic for collecting execution traces. While trying to resolve this emails went unanswered until one of my co-workers reached out in the public spotlight of twitter.

I had bad experiences with them too: http://sagemath.blogspot.com/2017/09/datadog-dont-make-same-...
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