

This company was GROWING by 122% in Q4 ’19
Despite the pandemic


AND raise its GROSS MARGINS to 79%

It is providing



Here is an EASY thread

$DDOG was founded in 2010 by Olivier Pomel and Alexis Le-Quoc
They met while working at Wireless Generation 
The pair set out to build a software that reduces friction between developers
and system-admins


The pair set out to build a software that reduces friction between developers


In very simple terms, $DDOG enables developers and operations teams to get a centralised view
of their infrastructure 
Meaning that they can monitor their cloud
servers
apps, services… in one place


Meaning that they can monitor their cloud



This is done through real-time
interactive dashboards, full-text search
and collaboration tools
(discussion, data sharing)
In more details, $DDOG offers 3 main tools
Log Management
Application Performance Management (APM)
Security monitoring and alerts



In more details, $DDOG offers 3 main tools




When IT systems are running, it outputs information about its state








You can use $DDOG to centralise ALL YOUR LOGS
These logs are then also analysed for anomaly
and trends detection 
Users can then search inside these logs
create dynamic dashboards
and build sophisticated alerts
These logs are then also analysed for anomaly


Users can then search inside these logs




APM ensures that an application remains available



It can be done through Real User Monitoring, Network Monitoring and Distributed Tracing 
$DDOG does all of these and is able to provide a full end-to-end tracing of users
This by integrating with Log Management
and providing a easy-to-use and understand dashboard





Meaning that they can monitor ALL OF A USER’S STEPS
when interacting with a business’ IT systems of all kinds 
From the screen
to the database and going through the servers


From the screen


Monitoring these steps and their consequences on a organisation’s IT infrastructure enables it to find weak spots it should improve on
Here is $PTON Customer Story
https://www.datadoghq.com/customers/?video=peloton
Here is $PTON Customer Story


What could $DDOG capabilities be used for as well? You’ve guessed it!
These monitoring capabilities enables it to detect suspicious behaviours



As always with $DDOG these alerts can be mapped
on a clean dashboard
and shared with colleagues across your organisation



So by now, it should be clear what $DDOG is doing
Is there a market
for that?
How is competition
doing?
Can $DDOG win?







According to Markets And Markets













According to Mordor Intelligence

“For many businesses, applications and services are the only potentials for revenue right now, with the shut down of stores and events...
...Thus, application performance management solutions play a pivotal role in this pandemic hours.”



Let’s review who is gaining market share

Dynatrace 
$DT is growing at 27% YoY on top of sales of $ 155m and GMs of 81%
$DT has a market cap of $ 12B and EV / Sales of 21
NewRelic
$NEWR is growing at 15% YoY on top of sales of $ 162m and GMs of 79%
$NEWR has a market cap of $ 3.7B and EV / Sales of 5.4

$DT is growing at 27% YoY on top of sales of $ 155m and GMs of 81%
$DT has a market cap of $ 12B and EV / Sales of 21
NewRelic

$NEWR is growing at 15% YoY on top of sales of $ 162m and GMs of 79%
$NEWR has a market cap of $ 3.7B and EV / Sales of 5.4
SolarWinds 
$SWI is growing at 8% YoY on top of sales of $ 246m and GMs of 73%
$SWI has a market cap of $ 6.7B and EV / Sales of 8.5
Rapid7
$RPD is growing at 25% YoY on top of sales of $ 98m and GMs of 70%
$RPD has a market cap of $ 3.2B and EV / Sales of 8.9

$SWI is growing at 8% YoY on top of sales of $ 246m and GMs of 73%
$SWI has a market cap of $ 6.7B and EV / Sales of 8.5
Rapid7

$RPD is growing at 25% YoY on top of sales of $ 98m and GMs of 70%
$RPD has a market cap of $ 3.2B and EV / Sales of 8.9
And here is Datadog 
$DDOG is growing at 68% YoY on top of sales of $ 140m and GMs of 79%
$DDOG has a market cap of $ 30B and EV / Sales of 62

$DDOG is growing at 68% YoY on top of sales of $ 140m and GMs of 79%
$DDOG has a market cap of $ 30B and EV / Sales of 62
Clearly
$DDOG is growing faster than its competitors
It is also growing way faster than the market CAGR
Gaining market share from competitors, but that brings us to our next question






Well, we’ve just seen it, $DDOG is growing faster than its competitors and eating their lunch

This is not surprising as customers often report the




Is that all? It got a great product
and is growing fast
? Let’s remember what $DDOG does 
Provides a software for applications performance management
Able to gather logs over all of companies’ infrastructure
Provides SIEM (Security info. & event mgmt) tools






Why is that important
Well ALL OF THIS is VERY relevant for the CLOUD 
And you know what is happening
Companies are shifting massively to the cloud


And you know what is happening
































Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ Markets And Markets
✑ HostingTribunal
✑ StackShare
✑ Mordor Intelligence
Sources
✑ Investor presentation
✑ Company website
✑ Markets And Markets
✑ HostingTribunal
✑ StackShare
✑ Mordor Intelligence
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