Don't Underestimate Datadog's Intensifying Competition
The monitoring and analytics software-as-a-service (SaaS) company Datadog (NASDAQ: DDOG) has been growing rapidly. But its impressive performance comes with a lofty valuation that the company's competition could damage.
Datadog sells products that monitor and analyze every element of cloud-based and in-house IT (Information Technology) infrastructure. According to studies, the infrastructure monitoring and application performance management (APM) markets in which Datadog competes will grow annually by 6.6% and 11.84%, respectively, over the next several years. In contrast, Datadog grew its revenue by 96.6% and 79.5% year over year in 2018 and during the first half of this year, respectively.
The company's low revenue base -- $266 million over the last 12 months -- favors its fast growth. In comparison, Datadog's SaaS competitors New Relic (NYSE: NEWR) and Splunk (NASDAQ: SPLK) posted revenue of $512 million and $2 billion, respectively.
Source Fool.com
