Strong Revenue Growth: Datadog reported Q2 revenue of $827 million, a 28% year-over-year increase, exceeding guidance expectations. This growth is driven by robust usage expansion from existing customers, particularly within the AI-native cohort, which now contributes about 11% of total revenues, up from 8% in the previous quarter.

Customer Expansion and Adoption: The company acquired approximately 31,400 customers (up from 28,700 a year ago) and reported that 3,850 customers generate $100,000+ in ARR, representing 89% of total ARR. These metrics indicate a successful sales strategy and increased product adoption, with 83% of customers using two or more products.

AI Native Cohort Growth and Risks: While the AI-native customer segment is a growing revenue source, there are risks related to potential volatility as these customers may renegotiate contracts and adjust their usage. The management expressed prudence regarding future growth, citing possible fluctuations from this cohort despite its current strong performance.