Datadog is becoming a platform company, & its Q3 2025 results underscore how successful this transition is. If nothing else, the consistency around 25% growth for the last 12 quarters exemplifies this point.

Datadog revenue growth chart showing quarterly revenue & year-over-year growth rate

Net dollar retention underpins this growth, combined with accelerating new customer account acquisition. One of the biggest changes in the last five quarters is terrific cross-selling across an increasingly large product suite.

Datadog net dollar retention recovery from 2023 trough to 120% in Q3 2025

Platform Adoption Deepening

At the end of Q3, 84% of customers were using 2 or more products, up from 83% a year ago. 54% of customers were using 4 or more products, up from 49% a year ago. 31% of our customers were using 6 or more products, up from 26% a year ago & 16% of our customers were using 8 or products, up from 12% a year ago.

Datadog’s platform spans six product categories:

  • Digital Experience Monitoring: RUM/Real User Monitoring, Synthetics, Product Analytics
  • Security: Cloud SIEM, Cloud Security
  • Infrastructure Observability: APM, Log Management, Flex Logs
  • Incident Response: Incident Management, On-Call
  • AI Capabilities: Bits AI, LLM Observability
  • Cost Management: Cloud Cost Management

The steady increase in multi-product adoption demonstrates customers consolidating their observability stack onto Datadog, with the highest-tier customers (8+ products) growing 33% year-over-year as a percentage of the base.

New Customer Momentum

New logo annualized bookings more than doubled year-over-year & set a new record driven by an increase in average new logo land size, particularly in enterprise.

The portion of our year-over-year revenue growth that related to new customers was about 25% in Q3, up from 20% in Q2.

New customer acquisition is also accelerating. This is in concert with a move-up market into the enterprise.

AI Native Customer Expansion

We also experienced strong revenue growth for our AI native customers & a broadening contribution to growth among those customers. There, too, we saw an acceleration of growth in our AI cohort in Q3 when excluding our largest customer.

This group represented 12% of our revenue, up from 11% last quarter & about 6% in the year ago quarter.

The AI native cohort is both growing & maturing. Datadog now has 15 AI native customers spending more than $1 million annually, up from essentially zero a year ago, with over 100 spending more than $100,000.

Revenue Growth

Revenue was $886 million, an increase of 28% year-over-year & above the high end of our guidance range.

The combination of these three factors : a broader product suite that is effectively cross-sold, accelerating new customer momentum, & a very fast-growing AI business, has led to outperformance.

Security Suite Accelerating

Security ARR growth was in the mid-50s as a percentage year-over-year in Q3, up from the mid-40s we mentioned last quarter.

We’re starting to see success in including Cloud SIEM in larger deals, & we’ll get back to that in a bit in our customer examples. And we’re seeing positive trends beyond Cloud SIEM, including fast uptake of good security & an increasing number of wins in cloud security.

Security is becoming a meaningful growth driver for Datadog, accelerating from mid-40s to mid-50s percentage growth & expanding beyond Cloud SIEM into broader cloud security use cases.

Enterprise Deal Momentum

First, we landed a 7-figure annualized deal with a leading European telco, our largest ever land deal in Europe. […] They will adopt 11 Datadog products to start.

Next, we landed a 7-figure annualized deal with a Fortune 500 technology hardware company.

Both of these data points confirm a significant move-up market. A million-dollar land deal with 11 products confirms that Datadog is truly selling a suite.

Datadog’s AI Products

In addition to the existing suite, Datadog is pushing heavily into AI with a broader range of AI deployment products.

  • Bits AI SRE Agent (Available in preview, announced June 2025) is an autonomous AI agent that investigates alerts & coordinates incident response 24/7, saving customers significant time on mean-time-to-resolution.

  • LLM Experiments & Playgrounds (Generally available, launched 2025) helps teams rapidly iterate on LLM applications by testing prompt changes, model swaps, & application changes against production traces.

  • Custom LLM-as-a-Judge Evaluations (Generally available) lets customers write natural language evaluation prompts to assess LLM application quality & safety across traces & spans.

  • Datadog MCP Server (Available in preview, announced 2025) bridges Datadog with AI agents like Codex, Claude, Cursor, & GitHub Copilot, providing structured access to metrics, logs, traces, & incidents directly from AI coding environments.

  • TOTO, Datadog’s open-source time series forecasting model (launched 2025), was trained on 2 trillion data points & became one of Hugging Face’s top downloads across all categories.

If SaaS companies were dog breeds, many would be temperamental. But Datadog demonstrates continued consistency across a broad range of different businesses.