Pomel said this underdog tale worked to the advantage of Datadog. Datadog is the monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. a partner team that works with resellers, distributors and managed service providers. 5. As mentioned in our WeWork IPO analysis, IPO investing can be a risky endeavor. Revenue increased 97% to $198 million in 2018, according to its S-1 filing. The article Datadog fetches $8.7 billion valuation, pricing IPO above the range at $27 originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. On-premises infrastructure monitoring and systems management companies including IBM, Microsoft, Micro Focus International, BMC Software, Inc. and CA Technologies (now owned by Broadcom). In its S-1 filing, Datadog lists both Dynatrace and Splunk as direct competitors. Now trading on Nasdaq under the “DDOG” ticker, the company priced 24 million shares at $27 on Wednesday. The move would have paralleled Cisco’s 2017 acquisition of AppDynamics for $3.7 billion, just two nights prior to the application performance management company’s IPO. The New … Datadog’s IPO (initial public offering) filing provides key business and financial insights about the cloud, application and infrastructure monitoring markets. NEW YORK -- (BUSINESS WIRE)--Sep. 18, 2019-- Datadog, Inc., the monitoring and analytics platform for developers, IT operations teams and business users in the cloud age, today announced the pricing of its initial public offering of 24,000,000 shares of its Class A common stock at a price to the public of $27.00 per share. Application performance monitoring (APM) companies such Cisco AppDynamics, Dynatrace and New Relic. First, some background: Datadog typically competes against Cisco AppDynamics, Dynatrace, New Relic, SignalFX, SolarWinds and other companies that provide various cloud monitoring tools. Previously, I made stops at The Ringer and the Raleigh News & Observer. “One thing investors reacted to was the fact that we run a healthy business from a profitability perspective,” Pomel said. I am a San Francisco-based assistant editor for technology and innovation. Shares of New York-based Datadog rose 39% to close at $37.55 after opening at $40.35 in the cloud company’s market debut Thursday. Loading... Datadog’s IPO Leads to Valuation Over $10B. 1. Your email address will not be published. Datadog priced its stock at $27, selling 24 million shares and raising $648 million in its IPO. EquityZen is a marketplace for shares of proven pre IPO tech companies. That’s become a huge asset to the nine-year-old company as it ballooned to a $10.9 billion valuation at the end of Thursday. And, you’re out of the echo chamber in the Silicon Valley so here you can get ahead on what the customers think,” he said. The company competes with Cisco, Elastic and Splunk, along with cloud providers like Amazon. The successes of MongoDB and now Datadog could spur the growth of an enterprise ecosystem in New York. Updated September 10, 2019: Datadpog’s IPO is seeking to raise roughly $528 million to $$607 million, at a valuation of $5.5 billion to $6.4 billion, according to a September 9 filing with the SEC. Datadog is an essential monitoring platform for cloud applications. Datadog initially set a range of $19 to $22. Box 21154, Mesa, AZ 85277. Shardul Shah, a partner at the firm who also sits on Datadog’s board, says he bought in because of Pomel’s “relentless focus on delivering customer value from the very beginning.”. These capabilities help DevOps teams avoid downtime, resolve performance issues, and ensure customers are getting the best user experience. September 23, 2019. The IPO is New York’s largest venture capital-backed tech IPO in two decades, according to Renaissance Capital. The company’s 1H19 revenue of $153.3M grew 79% y/y. Datadog has more than 8,000 customers and estimates its market opportunity to be $35 billion, according to its S-1 filing. Datadog will issue 24 million shares at a price of $19 to $22 per share. Next Service – Network Performance Monitoring: Currently available in beta, Datadog Network Performance Monitoring enables the analysis and visualization of the flow of network traffic in cloud-based or hybrid environments. The stock opened at 40.35, up 49%. Today it … Datadog filed with the SEC in anticipation of its IPO at the end of August. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of our customers’ entire technology stack. Stock Symbol NASDAQ:DDOG ; Valuation at IPO $7.8B; Money Raised at IPO $648M; IPO Share Price $27.00; IPO Date Sep 19, 2019 Forbes calculates that the stock would need to surpass about $43 per share for Pomel’s net worth to cross the $1 billion mark—at the stock’s high point of $41.44, Pomel was $35 million short. I think that’s what we were looking for.”. They include: 9. Native cloud monitoring solutions built into Amazon Web Services, Google Cloud Platform and Microsoft Azure. Much of the industry has focused on infrastructure and application performance monitoring (APM). Target Users: The company mostly mentions developers, operations engineers and business users. Alas, the four growth bullet points don’t specifically mention channel partners or MSPs at all. Request Access. Datadog General Information Description. Datadog declines Cisco Systems takeover bid, Datadog’s earlier Form S-1 registration statement, Dynatrace recently launched a successful IPO, Splunk is acquiring SignalFX for $1.05 billion, New Relic stumbled in its latest earnings call, Technology Conference Calendar for VARs, MSPs and CSPs, 590+ customers that spend $100,000 per year (recurring) with Datadog; and. 10. Required fields are marked *. The market for such tools has been hot but there has also been some turbulence. Datadog is registered under the ticker NASDAQ:DDOG . The IPO reflects continued investor demand for cloud analytics and monitoring. Revenue: Was $153.3 million for the six months ended June 30, 2019, up from $85.4 million for the first six months of 2018. Related September 18, 2019: Datadog declines Cisco Systems takeover bid . Datadog priced its shares at $27 apiece Wednesday, above the updated range of $24 to $26 it released the day prior. Datadog, a monitoring service that helps customers bring together data from across a variety of infrastructure and software is no exception. Since Datadog is a fast-growth SaaS company, it’ll likely … We’ll check in with MSP attendees to see if or how they’re leveraging Datadog in combination with SolarWinds for overall IT monitoring. “Initially when we started fundraising for Datadog, it was really not that easy,” CEO Olivier Pomel told Forbes after the market closed Thursday. Risk of Investing in Initial Public Offerings ("IPOs") There are specific risks in investing in an Initial Public Offering ("IPO"). The IPO could assign Datadog a valuation of several billion of dollars, the sources said. Minimum 15 minutes delayed. Datadog Inc. in recent weeks with a takeover offer significantly higher than the $7 billion valuation it aimed for in its initial public offering, according to people familiar with the matter. A prospectus can be obtained by writing to G. Price, Click IPO Securities, LLC, P.O. Previously, I made stops at The. Net Loss: Was $13.44 million for the first six months of 2019, compared to a net profit of $498,000 for the first six months of 2019. “We were not based where most of the companies were based, so it was hard to get trust from investors on the West Coast. The company brought on Morgan Stanley, J.P. Morgan, Goldman Sachs, Credit Suisse, and others as underwriters for the IPO. This would give Datadog a $6.6 billion valuation according to broker Renaissance Capital. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights. Buy or sell Datadog stock pre IPO via an EquityZen fund. Their stock opened with $27.00 in its Sep 19, 2019 IPO. Log management companies such Splunk and Elastic N.V. This article was updated to include the closing stock price, additional context on finances and comments from Pomel and Shah. Cloud infrastructure monitoring. At its IPO price, Datadog raised $648 million to bring its valuation to $7.8 billion. I primarily report on startups and artificial intelligence. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of our customers’ entire technology stack. 10 Dec 2020. 4. The monitoring and analytics company boasts impressive growth and minimal losses—and it's getting investors excited. I graduated in 2019 from Duke University, where I spent time as news editor for The Chronicle, the university's independent news organization. He said he’s happy with Datadog’s acquisitions so far, including application tester Madumbo. And the investors in New York were not really specialized in the type of company we were building.”. View More Companies. At $22 per share, Datadog could raise as much as $528 million, or $607.2 million inclusive of the underwriter’s option, in its public offering. Although most of these stocks—such as Zoom, Slack and Crowdstrike—had strong public debuts, some including Slack and Eventbrite have failed to maintain this momentum. Also, we’ll be on-hand for the SolarWinds Empower MSP conference in September. Staff: As of June 30, 2019, Datadog had 474 employees in sales and marketing, and 462 employees in the research and development (R&D) organization. “What helped the most by being in New York was that we’re a little bit closer to customers—there’s more of them here. Growth Strategy: The company points to four growth opportunities that involve (1) acquiring new customers, (2) cross-selling into the existing customer base; (3) investing in new products and R&D; (4) expanding outside of the United States. Overall, the company has: 2. Investor Relations Latest News. It reported a net loss of $10.8 million, after posting a $2.6 million loss the year prior—good numbers for a fast-growing company of its stature. 8. Datadog Inc is a monitoring and analytics platform for developers, IT operations teams and business users. © 2020 Forbes Media LLC. It brings together data from servers, containers, databases, and third-party services to make your stack entirely observable. That's $1 above the high end of its price range of $24 to $26. Save my name, email, and website in this browser for the next time I comment. One early investment came from Index Ventures, which has backed Datadog beginning with the Series A funding round. Item 10 is based on a third-party media source that also looked at the filing. All contents © 2020 ChannelE2E and After Nines Inc. Datadog IPO filing reveals target raise & valuation, plus cloud, application & infrastructure monitoring trends. Datadog Stock. Higher net losses usually accompany recent enterprise tech IPOs with comparable revenue figures, such as with Medallia ($82 million), Dynatrace ($116 million) and Crowdstrike ($140 million). It’s only been a few days since Datadog’s initial public offering, but the company has already made a splash. Datadog DDOG, +2.65% disclosed Tuesday that expected pricing of its initial public offering has increased to $24 to $26 a share from $19 to $22, which raises the … Datadog jumped to No. Guiding VARs, MSPs, CSPs, Total Service Providers (TSPs) s & Strategic IT Service Providers: From Entrepreneur to Exit. Datadog is one of the most recent names to debut in the IPO space, and those investors jumping in on its first trading day are now down between 10 to 20%.While At Datadog’s opening stock price, CEO Olivier Pomel was on the cusp of billionaire status. It did not stop running higher … Demand is a beautiful thing Underwriters were initially looking to price the Datadog deal between $19 and $21, an offering that would have valued … Research firm Gartner predicts the market will be worth $37 billion by 2023. Datadog to raise nearly $650 million in IPO New York-based company priced 24 million shares at $27 , which would raise roughly $648 million at a market valuation of around $7.8 billion. Datadog IPO. You can email me at kcai [at] forbes.com. I cover tech, with a focus on startups and artificial intelligence. Founded. At the low … Overall company headcount was 1,212. VC Daily: GitLab’s Valuation Boost; Crypto Custody; Datadog Raises IPO Range; Women in VC Nominations Sept. 18, 2019 8:45 am ET Good day. In August alone, application performance management company Dynatrace’s stock jumped 49% in its public debut, while cloud monitoring vendor SignalFx was acquired by Splunk for more than $1 billion. 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