Topic: How To Invest

Q: Hey, Pat. What is your recommendation on Datadog? Thank you for your advice over the years.

Article Excerpt

A: Datadog Inc., $87.15, symbol DDOG on Nasdaq (Shares outstanding: 306.5 million; Market cap: $25.5 billion; www.datadoghq.com), provides IT monitoring and analytics services. The Datadog platform monitors and analyzes traffic and usage patterns across computer servers, databases, tools, and services. Organizations of all sizes and in a wide range of industries rely on the platform. Headquartered in New York City, Datadog markets the platform to developers, information technology operations teams, and business users in North America (75% of revenue) and internationally (25%). All revenue is from subscription software sales. Through an IPO, the company first offered shares to the public at $27 a share in September 2019. Datadog was founded in 2010 and began selling its monitoring and analyzing applications in 2016. With the spread of cloud-based computing (where users log onto the Internet to access files and software stored on remote servers), revenue increased 96.5%, from $100.8 million in 2017 to $198.1 million in 2018. It then jumped 83.1% to $362.8 million…