Toby Bordelon

Management directly tied the momentum we're seeing in the raw numbers we got from the quarter to their customers using their AI features.

They highlighted the new features based on the AI they've rolled out.

I think that's fed into the reporting narrative that we see with this earnings report.

The story on Datadog right now is AI is driving demand for their services.

That narrative maybe shouldn't matter.

A big part of this is how management has framed the results in this presentation.

Should that matter versus the actual numbers?

Probably not, but it does.

At the same time, a week after that big market drop, I think a lot of investors are realizing, hey, the numbers we're seeing from a bunch of these companies, as you noted, Emily, they're beat and raised in many cases.

The companies are doing well.

If the AI apocalypse is coming, it's not going to be this quarter.

Datadog is also benefiting from not just that framing that management has done a good job at, but just timing.

They reported a week after the big fear and gave them enough time for that narrative to change.

I think they're coming late enough here that those initial fears are starting to moderate a little bit.

You put the storytelling and framing together with just the timing, and it's been really good for them.

Now, should overall market buy matter when you report earnings?

No, but it often does.

I think that's what we're seeing with Datadog here.

Yeah, there's definitely a threat here.

They've got to get this right.