Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

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<a href="https://www.smartkarma.com/entities/datadog-inc" target="_blank" data-smartkarma-citation="entities:28270:1" rel="noopener">Datadog Inc (DDOG US)</a>, which provides a monitoring and analytics platform, provided an IPO price range of $19 and $22 per share. The company is expected to complete its IPO later this month.</li>
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Our base case valuation of the company is $8.2 billion (in market cap) or $28.1 per share. This would represent a 37% upside to the initial valuation of $20.5 per share (mid-point of the IPO price range of $19 to $22 per share. As such, we are bullish on this IPO. 
</li>
<li>Smartkarma has been a customer of Datadog products for more than a year. We included several Q&amp;As about Datadog with interesting comments from <a href="https://www.smartkarma.com/profiles/marlon-marcos" target="_blank" data-smartkarma-citation="accounts:230" rel="noopener">Marlon Marcos</a>, one of the employees at Smartkarma.</li>
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Datadog Inc (DDOG US), which provides a monitoring and analytics platform, provided an IPO price range of $19 and $22 per share. The company is expected to complete its IPO later this month.

Our base case valuation of the company is $8.2 billion (in market cap) or $28.1 per share. This would represent a 37% upside to the initial valuation of $20.5 per share (mid-point of the IPO price range of $19 to $22 per share. As such, we are bullish on this IPO. 

Smartkarma has been a customer of Datadog products for more than a year. We included several Q&amp;As about Datadog with interesting comments from Marlon Marcos, one of the employees at Smartkarma.


<ul>
<li><a href="https://www.smartkarma.com/entities/datadog-inc" target="_blank" data-smartkarma-citation="entities:28270:1" rel="noopener">Datadog Inc (DDOG US)</a> is getting ready to complete its IPO in the U.S. stock market in the next few weeks. This is a very interesting IPO with excellent growth prospects and a reasonable path to positive profitability. So it would be worthwhile to pay attention to this IPO. </li>
<li>Datadog provides monitoring and analytics platform for developers, IT operations teams and business users, including in a cloud environment. The company's platform is used in numerous environments including public cloud, private cloud, on-premise and multi-cloud hybrid. The company's SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, and log management.</li>
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<a href="https://www.smartkarma.com/entities/datadog-inc" target="_blank" data-smartkarma-citation="entities:28270:1" rel="noopener">Datadog Inc (DDOG US)</a> generated revenue of $198.1 million (up 96.6%) in 2018 and revenue of $153.3 million (up 70.5% YoY) in 1H19. The company's revenue growth rate has been very impressive over the past two years.</li>
<li>There have been a few prominent acquisitions and IPOs of cloud monitoring companies this year. A key competitor called<a href="https://techcrunch.com/2019/08/21/splunk-acquires-cloud-monitoring-service-signalfx-for-1-05b/" target="_blank" rel="noopener"> SignalFX</a> was acquired by Splunk for $1.05 billion in August 2019. SignalFX generated an estimated revenue of <a href="https://www.forbes.com/sites/kenrickcai/2019/08/21/splunk-acquires-cloud-monitoring-company-signalfx/#69cc7f094b51" target="_blank" rel="noopener">$25 million</a> in 2018 so this acquisition would represent a whopping P/S multiple of 42x. Dynatrace, which is also a competitor to Datadog, completed its IPO in early August and since the IPO, Dynatrace's share price is up 43%.</li>
</ul>


Datadog Inc (DDOG US) is getting ready to complete its IPO in the U.S. stock market in the next few weeks. This is a very interesting IPO with excellent growth prospects and a reasonable path to positive profitability. So it would be worthwhile to pay attention to this IPO. 
Datadog provides monitoring and analytics platform for developers, IT operations teams and business users, including in a cloud environment. The company's platform is used in numerous environments including public cloud, private cloud, on-premise and multi-cloud hybrid. The company's SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, and log management.

Datadog Inc (DDOG US) generated revenue of $198.1 million (up 96.6%) in 2018 and revenue of $153.3 million (up 70.5% YoY) in 1H19. The company's revenue growth rate has been very impressive over the past two years.
There have been a few prominent acquisitions and IPOs of cloud monitoring companies this year. A key competitor called SignalFX was acquired by Splunk for $1.05 billion in August 2019. SignalFX generated an estimated revenue of $25 million in 2018 so this acquisition would represent a whopping P/S multiple of 42x. Dynatrace, which is also a competitor to Datadog, completed its IPO in early August and since the IPO, Dynatrace's share price is up 43%.


United States

Datadog, Inc. provides software solutions. The Company offers cloud-based monitoring and analytics platform which integrates and automates infrastructure monitoring, application performance monitoring, and log management for real-time observability of customers. Datadog operates worldwide.

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Datadog (DDOG US)

Datadog IPO Valuation Analysis

Datadog Inc (DDOG US), which provides a monitoring and analytics platform, provided an IPO price range of $19 and $22 per share. The company is...

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Datadog IPO Preview

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