Datadog

Datadog is first of all the instrument of monitoring of cloud applicaions. It provides detailed metrics for all cloud applicaions, servers and networks. It can be integrated with other instruments of automation, such as Ansible, Chef, Puppet, etc. The tariff plans Datadog are Synthetics, Log Management, Infrastructure and APM at the price of 5, 1.27, 15 and 31 dollars for a host in a month respectively. The prices can be higher depending on the choice of packets (professional and corporate). Datadog intends for detection and elimination of problems in a system. This quite effective and economic solution for management of cloud infrastructure.

2019

Leonid Boguslavsky made good money on investments into the company and controls 8% of shares

Among major shareholders of Datadog — RTP Ventures, entering into RTP Global investment holding of the Russian IT investor Leonid Boguslavsky. According to the avenue of the IPO, RTP Ventures after placement controls 8.2% of shares, or 8.1% of voices in the company. Proceeding from the current capitalization, such packet costs  about $859 million. "I sold nothing. Saved all actions. Very much I trust in the company" — mister Boguslavsky reported Kommersant.

After the IPO the packet of the Russian investor who saved actions for several years rose in price approximately for 1800%.

RTP Ventures invested in Datadog in 2012 during a round And which total amount was $ 6.2 million, in 2014 — during  B round for $ 15 million and in 2015 — during a round  With  a size of $31 million, the director of the IK analysis department Fried Finance Vadim Merkulov reminds. According to him, the minimum profitability of RTP Ventures on the invested money exceeds 1800%. The resubscription to IPO Datadog was very high, the cost of the company is explained by dynamics of growth of its business, the analyst specifies: growth rates of revenue of Datadog in 2018 were 97%, in the first half of 2019 — 79%. Among her competitors there is IBM, Microsoft, etc., but in this segment it is still simple to increase volume because of the growing market in general, deceleration of growth rates can be noticed only in two-three years, mister Merkulov believes.

So far a few Russian investors led the portfolio companies to the IPO, and the risks connected with Russia are too high, states a source of Kommersant in one of the American investment banks. However even Leonid Boguslavsky's finding in the so-called Kremlin list (the list of the high-ranking Russian politicians and oligarchs published by the Ministry of Finance of the USA in January, 2018) did not prevent IPO Datadog, respondents of Kommersant investors recognize.

Entry into the Nasdaq exchange

On September 20, 2019 it became known that Nasdaq was gone public by Datadog company. It is the monitoring and analytical platform for developers, IT and operational groups and business users in the field of cloud computing. Datadog use the organizations of all sizes and in a broad spectrum of the industries.

The platform of the company is provided on model of service SaaS, allows to collect data and metrics from servers, databases, the magazine of applications and to analyze them in real time. The product Datadog gives digital transformation of the company and transfer of its business processes in a cloud, stimulation of cooperation between operational groups and an opportunity to coordinate their actions, reduction of time for problem solving and also the analysis of behavior of users and tracking of key indicators of business.

Datadog generates revenue directly from sale of subscriptions to the cloud platform which can be issued on a monthly or annual basis. There are both additional products and services, for example storage of objects in a container, packets of the user metrics, the analyst of applications and identification of anomalies.

One of Datadog services — monitoring of performance of applications, and, by estimates of the consulting agency Gartner, by 2021 the companies will use 4 times more actively this solution. At the same time cloud computing is more and more demanded among corporations which in 2019 as expects Gartner, will spend for them more than $1 trillion. Proceeding from all range of the products and services, Datadog considers that for September, 2019 its target market makes $35 billion.

For the first 6 months 2019 the customer base of Datadog increased by 14.3% — to 8.8 thousand clients in comparison with 2018. According to the results of the I half-year 2019 a deduction percentage of clients in terms of money Datadog made 146%. Mean value for SaaS services, coming for the IPO, makes only 106.5%, and results of Datadog show that revenue growth of the company from the existing customer base more than offsets losses of clients and, respectively, income from them.

For all history Datadog carried out 6 investment rounds within which the company attracted about $147.9 million financing. The largest investors — international firm of a venture capital Index Ventures and ICONIQ Capital investment company. As the largest shareholders Index Ventures and OpenView Venture Partners perform with shares of 20.1% and 16% respectively. The chief executive officer of Datadog Olivier Pomel and the co-founder of the company Alexis Le-Couoc own 14.1% and 8.9% of capital stock respectively. At the beginning of 2016 according to the results of the final investment round of Datadog estimated at $640 million; a day before carrying out the IPO, proceeding from the posted price of placement, its capitalization made about $7.8 billion.

On September 19, 2019 initial public offering of Datadog on the Nasdaq stock exchange took place. The price of placement was $27 for an action. The first affordable price at the time of opening of the market was $40.55 for an action. During all trading session of paper showed moderate volatility. The closing price was $37.55 for an action.

Cost dynamics of the stocks Datadog, Inc. in the first day of biddings on September 19, 2019, $

All Datadog placed 24 million shares. According to the results of the IPO company raised $648 million money, and its capitalization after the first day of biddings made about $10.9 billion that exceeds business valuation before placement for 39.5%.^[1]

2018: Growth of revenue by 96% to $198 million

In 2018 revenue of Datadog grew by 96.7% of yoy — to $198.1 million while net loss made $10.8 million against a loss in $2.6 million for the same period the previous year (research costs and developments and also sales and marketing increased). At the same time the number of clients of Datadog in 2018 extended for 42.1% of yoy — up to 7.7 thousand, and in relation to 2017 growth more than twice was recorded. Besides, in 2018 the negative EBITDA value was only $1.5 million.

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