Datadog Inc Q2 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jacob Roberge - William Blair & Company L.L.C., Research Division - Analyst : Obviously, AI is something that a lot of customers are excited about, but we're hearing that it may be delaying purchasing decisions in other parts of that tech stack until customers kind of figure out how they want to incorporate AI into their broader organization and just how much that will cost. Do you feel like that dynamic impacted Q2 at all with just maybe a near-term lull in IT spending until broader AI plans are finalized? Or is the updated guide mainly just driven by the optimizations you've been calling out?

Question: Jacob Roberge - William Blair & Company L.L.C., Research Division - Analyst : Okay. Helpful. And then you called out the strong new logo bookings quite a few times there. Are there any commonalities between those customers from just a size or maybe an industry perspective? And I'm curious if you've started to see any of the newer generative AI-focused companies that are creating these LOMs start to actually layer into your model from a customer perspective?

Question: Jacob Roberge - William Blair & Company L.L.C., Research Division - Analyst : Yes. The first part was just around the strong new logo bookings and just if there was any commonalities between those customers from a size or an industry perspective.

Question: Imtiaz Ahmed Koujalgi - Wedbush Securities Inc., Research Division - Analyst : I have a question on the new logo bookings that you mentioned. What is the average duration of new bookings or new logo bookings? And how has that trended so far?

Question: Imtiaz Ahmed Koujalgi - Wedbush Securities Inc., Research Division - Analyst : And just to clarify, the duration for new customers was consistent with the prior quarter or was it higher?

Question: Imtiaz Ahmed Koujalgi - Wedbush Securities Inc., Research Division - Analyst : Very helpful. Just one follow-up. That 40% of the new, I guess, revenue growth came from new customers. So 10 points of the revenue growth came from new customers who signed up in the last, I guess, year. Is that a consistent metric or was that higher or lower than what you usually see?