Datadog Enjoys Solid Q2 Results and Strong Retention; Maintaining $192 FVE

We are maintaining our fair value estimate for Datadog of $192 per share after the firm reported solid second-quarter results better than our above-consensus expectations. We are impressed with the firm’s success in penetrating the enterprise market. We believe Datadog’s sticky product portfolio, a driver behind its narrow economic moat, and strong upselling into the enterprise space will enable the firm to deliver ongoing shareholder value. With shares trading around $105 intraday, we still view Datadog as attractively priced for investors looking for exposure to high-quality SaaS names.