[UPDATE] Datadog beats and raises, falls ~17-21% after its largest AI customer cuts usage
Datadog reported Q2 revenue of $1.12B, up 36% year over year, with EPS of $0.65 against a $0.58 consensus, and raised full-year revenue guidance to $4.45-4.47B. The shares fell sharply anyway, on a disclosed usage reduction from its largest AI customer and Q3 growth guided down to 28-29%, and free-cash-flow margin easing from 29% to 25%. It is the first clean read in this reporting season on AI-customer usage optimisation reaching a vendor's own numbers; watch whether other consumption-priced infrastructure names guide the same way.