Datadog’s Valuation Remains Attractive With Another Strong Quarter in the Books; Maintain $192 FVE

We are maintaining our fair value estimate for Datadog of $192 after the firm kicked off fiscal 2022 with results better than our above-consensus expectations. We continue to be impressed with the firm’s penetration in the enterprise market. In our opinion, Datadog’s sticky product portfolio, a driver behind its narrow economic moat, and strong upselling into the enterprise space should allow the firm to deliver continued shareholder value. Shares are down in line with the market after these results, as broad and indiscriminate selling continues. With shares trading around $110 intraday, we still view Datadog as attractively priced for investors looking for exposure to high-quality SaaS names.