Datadog Inc Q3 2023 Earnings Call Transcript

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

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Maybe David, I'll direct this to. I was intrigued by your comment that the fourth quarter, the month of October was off to a healthy start understanding that that's just a month. But just curious if you could unpack that a little bit, largely because investors on this call, we are picking up signals from other tech firms that would suggest a still very tough macro environment or maybe even slightly tougher. So I'm just curious where you might be seeing pockets of strength, if you could add a little more color.

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : And I'll offer my congrats as well. Oli, I wanted to double-click on some of the improved usage trends. Can you provide us with an overview on how some of your large sort of strategic customers think about optimization is really part of an ongoing IT spending strategy, coupled with what's driving some of these increased uses. I guess I'm wondering have IT executives from your perspective changed their view on the level of monitoring needed with new levels of workload?

Question: Jacob Roberge - William Blair & Company L.L.C., Research Division - Analyst : Congrats on the great results. Olivier, you called out the 2.5 points from AI native customers a few times, but you've also said that the broader customer base should start adding AI workloads to our platform over time. When do you think that actually takes place and the broader customer base starts to impact that AI growth in more earnest?

Question: Jacob Roberge - William Blair & Company L.L.C., Research Division - Analyst : Okay. Helpful. And then just a follow-up on the optimization front. It sounds like the early optimizers took about a year to complete those initiatives. But what type of time lines are you seeing from kind of the second or third layer of customers that started their optimizations later in the game. Have those also started to stabilize given they weren't as large as the early optimizers? Just trying to kind of parse out the customer base there.