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Datadog DDOG has expanded its cloud monitoring platform with the acquisition of Metaplane, a company that specializes in end-to-end data observability. Metaplane’s machine learning-powered tools help businesses detect, prevent, and fix data quality issues across their entire data stack, helping build greater trust in the information that powers AI models and modern applications.
This move builds on Datadog’s earlier launches like Data Jobs Monitoring and Data Streams Monitoring, strengthening its push into the fast-growing data observability space. As platforms like Snowflake and Databricks become central to business operations, Datadog’s new capabilities give customers better visibility across the full data lifecycle, from production systems to final consumption, instead of just monitoring data after it reaches a warehouse.
With businesses increasingly relying on AI and data-driven products, full-stack data observability is becoming a key requirement. By integrating Metaplane’s technology, Datadog is helping data teams catch problems earlier, improve reliability, and drive faster innovation across their organizations. It also strengthens Datadog’s position as a broader, more complete observability platform for the modern cloud era.
Why Datadog’s New Acquisition Deserves Attention
The acquisition comes at a time when Datadog’s customers are expanding their use of cloud, AI, and data-driven applications. DDOG ended 2024 with around 30,000 customers, including 45% of the Fortune 500, and more than 3,600 customers generating $100,000 or more in ARR. While the company was already a leader in observability for infrastructure, applications, and logs, it lacked full-stack visibility into the quality and flow of business data itself. Adding Metaplane fills this important gap as companies demand deeper data monitoring.
Bringing Metaplane’s capabilities into the platform also supports Datadog’s strategy of expanding product adoption. As of the fourth quarter, 50% of customers used four or more products, and 12% used eight or more. Offering end-to-end data observability as part of the core platform should improve retention, boost cross-sell opportunities, and drive higher long-term revenues, especially as businesses increasingly seek integrated solutions for cloud, AI, and data operations.
Financial Performance and Market Outlook of Datadog
Datadog's financial trajectory remains robust, with guidance for first-quarter 2025 projecting revenues between $737 million and $741 million, suggesting 20-21% year-over-year growth. The full-year 2025 outlook appears promising, with expected revenues between $3.175 billion and $3.195 billion and non-GAAP earnings per share in the range of $1.65-$1.70.
The Zacks Consensus Estimate for 2025 revenues and earnings is pegged at $3.19 billion and $1.68 per share, respectively. This indicates a year-over-year improvement of 18.7% in the top line and a decrease of 7.69% in the bottom line. The earnings estimates have been revised downward by a penny over the past 30 days.