![Today, we will be breaking down Datadog. If you've ever used Control-Alt-Delete to force quit a frozen application - you've experienced the Activity Monitor on your own computer. Datadog is that Activity Monitor for all of a business’s systems across its apps, tools, databases, and servers. <br /><br />In this episode, we cover Datadog's unique product development cadence, how they’re able to grow their top line at 60% a year while staying profitable, and why Web3 might be their<br />biggest competitive threat. <br /><br />To break down Datadog, host Jesse Pujji is joined by Peter Offringa, the author of Software Stack Investing. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/25483720/offringa-<br />datadog-the-realtime-data-monitor <br /><br />----- <br />This episode is brought to you by Tegus. We created Business Breakdowns to uncover the lessons and frameworks behind every business, and that's what makes Tegus our perfect launch partner.<br />Much of the foundational prep for these episodes starts with research on the Tegus platform. With Tegus, you can learn everything you’d want to know about a company in an on-demand digital platform. Investors share their expert calls, allowing others to instantly access more than 15,000 calls on Coinbase, Hinge Health, Farfetch, or almost any company of interest. All you have to do<br />is log in. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial.<br />----- <br />Business Breakdowns is a property of Colossus, Inc. For more episodes<br />of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week.<br /><br />Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss <br /><br />Show Notes <br />[00:00:00] - Introduction <br />[00:02:54] - [First question] - What Datadog does and their current scale<br />[00:03:58] - Their customer base today and noteworthy growth metrics <br />[00:05:21] - The basics of a tech stack business and Datadog’s approach to it <br />[00:07:31] - What problem Datadog solves and how they came across it<br />[00:08:26] - An overview of a typical backend infrastructure and how Datadog improves it <br />[00:11:52] - Who Datadog’s actual customer is<br />[00:13:21] - The founding story and what fuelled their rapid growth <br />[00:15:58] - What the market looks like today and who their competitors are<br />[00:18:35] - Scaling the business so quickly and how they measure it <br />[00:21:07] - Their unique and highly successful marketing approach <br />[00:24:06] - Parallels between the user experiences of Datadog and Twilio <br />[00:26:00] - The gross margin profile and how it’s trending<br />[00:26:58] - Dollar revenue retention and how pricing unlocks sales and marketing spend <br />[00:29:18] - How Datadog’s pricing stacks up against their competitors <br />[00:30:41] - The advantages of using Datadog versus AWS and pre-provided solutions <br />[00:33:49] - Their M&A; strategy and what makes it unique <br />[00:36:46] - What would have to go right for their market cap to double over the next decade [00:39:12] - Potential risks or threats to Datadog’s potential success <br />[00:41:28] - Lessons for builders when studying Datadog’s story <br />[00:42:52] - Lessons for investors to take away from Datadog’s success <br />[00:43:57] - Where to learn more about Datadog.<br /><br />#businessbreakdowns #Datadog #podcasts](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
Today, we will be breaking down Datadog. If you’ve ever used Control-Alt-Delete to force quit a frozen application – you’ve experienced the Activity Monitor on your own computer. Datadog is that Activity Monitor for all of a business’s systems across its apps, tools, databases, and servers.
In this episode, we cover Datadog’s unique product development cadence, how they’re able to grow their top line at 60% a year while staying profitable, and why Web3 might be their
biggest competitive threat.
To break down Datadog, host Jesse Pujji is joined by Peter Offringa, the author of Software Stack Investing.
Show Notes
[00:00:00] – Introduction
[00:02:54] – [First question] – What Datadog does and their current scale
[00:03:58] – Their customer base today and noteworthy growth metrics
[00:05:21] – The basics of a tech stack business and Datadog’s approach to it
[00:07:31] – What problem Datadog solves and how they came across it
[00:08:26] – An overview of a typical backend infrastructure and how Datadog improves it
[00:11:52] – Who Datadog’s actual customer is
[00:13:21] – The founding story and what fuelled their rapid growth
[00:15:58] – What the market looks like today and who their competitors are
[00:18:35] – Scaling the business so quickly and how they measure it
[00:21:07] – Their unique and highly successful marketing approach
[00:24:06] – Parallels between the user experiences of Datadog and Twilio
[00:26:00] – The gross margin profile and how it’s trending
[00:26:58] – Dollar revenue retention and how pricing unlocks sales and marketing spend
[00:29:18] – How Datadog’s pricing stacks up against their competitors
[00:30:41] – The advantages of using Datadog versus AWS and pre-provided solutions
[00:33:49] – Their M&A; strategy and what makes it unique
[00:36:46] – What would have to go right for their market cap to double over the next decade [00:39:12] – Potential risks or threats to Datadog’s potential success
[00:41:28] – Lessons for builders when studying Datadog’s story
[00:42:52] – Lessons for investors to take away from Datadog’s success
[00:43:57] – Where to learn more about Datadog.