Thread by @jasonlk

Datadog is the latest Cloud leader to grow faster than ever

It's now growing 75% at $1.2 Billion in ARR!!

The key? Getting customers to buy 4+ products

5 Interesting Learnings: 🔽🔽🔽🔽🔽

#1. 1,800 customers with ARR of $100,000 or more, a year-over-year increase of 66% from 1,082.

Datadog isn’t leaving smaller customers behind, but they are increasingly a smaller % of revenue. $100k+ customers have gone from 50% of revenue in 2016 to almost 80% today:

#2. More product, more products, more products.

10 new products this year. Almost all the Cloud leaders accelerating after $100m ARR, let alone $1B ARR, are multi-product.

#3. In 2018, most Datadog customers used 1 product.

Today, most Datadog revenue comes from customers that use 4+ products. Just 28% of Datadog’s customers use 4+ products, but they make up the vast majority of revenue:

#4. But customers don’t buy all the products at first.

Datadog earns customer trust, then expands the number of products customers buy from them:

#5. 130%+ NRR for 16 quarters — and GRR going up to 95%.

A reminder there is no ceiling to top tier NRR in SaaS and Cloud. Not even at $1B+ ARR.

In fact, you can even increase your GRR at $1.2B+:

And a few bonus learnings:

#6. 450+ integrations.

You know this, but doing “all the integrations” can be a killer winning strategy.

#7. From 2 $1m ARR customers in 2016 to 145 today.

Datadog has steadily marched upmarket, but not abruptly:

#8. Classic self-service + inside sales + enterprise sales model. Datadog may have revolutionized observability, but it didn’t change how you set up a sales team:

- smallest self-serve
- ones up to $50k-$100k go through inside sales
- dedicated enterprise team handles largest

A full deep dive here:

saastr.com/5-interesting-…