Datadog stock price more than doubled from April lows as Q1 revenue growth expanded to 32% year over year, topping $1 billion in a quarter for the first time.

Datadog's market cap has moved toward $80 billion after its stock price more than doubled from April lows. Q1 revenue growth expanded to 32% year over year.

Datadog operates a software-as-a-service (SaaS) platform that helps companies monitor all their technology infrastructure in one centralized dashboard, showing the health of servers, applications, and security systems in real time. Existing customers are currently spending just over 20% more on services than they did a year ago.

The company generated $915 million in free cash flow last year with a 27% FCF margin, while reinvesting 45% of revenue into research and development. At current prices, the stock trades for roughly 22 times sales and nearly 80 times last year's free cash flow.

Microsoft's plan to cancel Claude Code licenses for developers points to a growing need for companies to track artificial intelligence usage and costs, an environment that could benefit Datadog's platform.