data dog story over the years as it grew to 2 billion

data dog story over the years as it grew to 2 billion

1. ANALYSIS OF DATADOG GROWTH

2. DATADOG JOURNEY TO $1B ARR & BEYOND – ARCHETYPAL SAAS PRODUCT-LED-GROWTH GA - Infra Founded Series - B Series - C Series - D Venture IPO ($27) Seed Seed Series - A APM Logs RUM 2010 Founded $2.1 B 2023 Revenue 74% Average YoY $148 M Funding $ARR in million Inception $15 M $31 M $ 95 M $ 1.2 M $6.2 M Flywheel Product diversification (build + M&A) – high velocity feature release & Enterprise Sales One product One platform Used by everyone Deployed everywhere Compliance Error track Code profiler $748 M Undisclosed 21 Inst. Investors 27,300 Customers Convertible Marketplace Compliance mon. Error Tracking Code profiler Compliance Error track Code profiler Vulnerability Data stream Workflow auto. Undisclosed $648 M All Cloud, perf & scalability Pre-money $545 M Market cap $10.88 B Market cap $40.66 B Self service

3. DATADOG PRINCIPLES AND BENEFITS DISCLOSED IN SEC FILING DURING IPO IN 2019 PRODUCT STRENGTH Built for dynamic cloud & hybrid infrastructure. Simple but not simplistic – easy to use & self-service. Integrated data platform – Infra, APM, Logs, RUM, CI/CD & Sec. Built for collaboration – Dev, Ops, Product, Business & Sec. Cloud agnostic – public, private, on-prem & multi/hybrid. Ubiquitous – deployed across & used by everyone. Integrates with customers’ env. – 700 OOTB int. without PSO. Powered by robust analytics & ML – actionable insight. Scalable – handling 10 trillion events & million servers/day. Accelerate digital transformation. Reduce time to problem detection and resolution. Improve agility of dev, operations & business team. Enable operational efficiency. KEY BENEFITS TO CUSTOMER Market Penetration – expand our customer base by acquiring new customers through sales & marketing. Up/Cross-Sell – expand within existing customer base through broader deployments, new use cases and product adoption. Product & Market Diversification – Expand our technology leadership through continued investment and new products. New Market – Expand our customer base internationally. GROWTH STRATEGY

4. DEEP-DIVE DATADOG PRODUCT LED GROWTH

5. BRIEF PRIMER ON PRODUCT LED GROWTH AND CHECKLIST END-USER FOCUSSED growth model that relies on the product itself as the primary driver of customer acquisition & expansion. PRODUCT USAGE north-star metric as the key primary strategic driver. DELIVER VALUE before the paywall, minimize friction for a user to get value out of the product. SELF-SERVICE END-USER BUYER TIME-TO-VALUE CLEAR PRICING Can I buy the product with a credit card or use the product without talking to sales reps? Is the buyer the end-user (consumer) of the product and solving the buyer’s pain point? Can I get the value of the product and how soon without having to talk to a person? Is there a clear pricing page? Is the paywall after I get value? What are the charges of additional?

6. CHALLENGES OF THE “GREAT SPRAWL” IN MODERN-TECH IS A RECIPE FOR “GREAT PRODUCT” CONVERGENCE of scaling, multi-cloud, containerization, and distributed architecture (microservices & ISVs) CREATES intricate and complex App and systems management. INTERACTION FAILURE leads to customer dissatisfaction & negative network effects, AFFECTING operations, engineering, product & business to the extent of finger-pointing. GREAT SPRAWL GREAT PAIN MANAGING success (uptime & reliability) 24/7 & 99.9% of the time, of every customer INTERACTION with the platform i.e. 1 in 1000 failure at the max. GREAT RISK RECIPE FOR A GREAT PRODUCT 2009 – 2010: Experience of great-sprawl, great-pain & product vision.

7. “OBSESS” OVER USER PROBLEMS TO THE POINT THAT IT GENERATES “INBOUND” LEVERAGED the DevOps trend, FOCUSSED on a single product Infra-monitoring. PRODUCT that works at cloud scale across the ephemeral tech i.e. microservices, containers & serverless computing. Product vision : “Simple but not simplistic” SOLVE THE RIGHT PROBLEM CONTENT MARKETING technical blog, with deep research on the latest topics. CONFERENCES conducted demos and acquired real customer feedback. Step 1 of PLG : sufficient inbound market demand GENERATE MARKET INTEREST CREATE “SIMPLE BUT NOT SIMPLISTIC” PRODUCT & GENERATE SUFFICIENT “INBOUND” MARKET “DEMAND” 2010 – 2011: Conceptualization, dip-stick & seed-fund of $1.2 million – all engineer.

8. ENABLE “SELF-SERVICE” WITH A “SHORT TIME TO VALUE” PRODUCT CAPABILITY that tackles challenges consumers can not solve alone using open-source solutions in monitoring the cloud. ACCURATE ALERTS avoiding “false positive” that erodes trust , baked into the product’s core principle of high confidence in alerts. Market knowledge, positioning, packaging, what is being sold and who it is sold to. DELIVER AUTHENTICITY SELF-SERVICE & free trial: 14-day free trial. END-USER BUYER honing on the CONSUMER: IT Ops or Dev can visualize. TIME TO VALUE: less than 15 minutes. CLEAR PRICING: $15/host/month and clear upsell. No PSO : DataDog finessed the self-service sign-up flow and reduced time to value. BOTTOM-UP GTM DELIVER AUTHENTICITY & BOTTOM-UP GTM FOR PLG “FLYWHEEL EFFECT” 2012 – 2013: paying customers exceeded 100 & Series-A of $6.2 million.

9. OPTIMIZE FOR END-USER USAGE AND NOT RFP CHECKLIST PRODUCT CAPABILITY that tackles challenges consumers can not solve alone using open-source solutions in monitoring the cloud. ACCURATE ALERTS avoiding “false positive” that erodes trust , baked into the product’s core principle of high confidence in alerts. Market knowledge, positioning, packaging, what is being sold and who it is sold to. DELIVER AUTHENTICITY SELF-SERVICE & free trial: 14-day free trial. END-USER BUYER honing on the CONSUMER: IT Ops or Dev can visualize. TIME TO VALUE: less than 15 minutes. CLEAR PRICING: $15/host/month and clear upsell. No PSO : DataDog finessed the self-service sign-up flow and reduced time to value. BOTTOM-UP GTM DELIVER AUTHENTICITY & BOTTOM-UP GTM FOR PLG “FLYWHEEL EFFECT” 2014 – 2015: $15 million series B