Datadog reaches $1.12B as AI tools hit GA

Datadog reported $1.12 billion in second-quarter revenue, up 36% year over year, as its Bits Code, Bits Chat, and Bits Agent Builder products reached general availability. The company’s quarterly results also put free cash flow at $279 million and customers spending at least $100,000 annually at about 4,720, up 23%, while introducing autonomous incident response and AI Guard for prompt-injection and poisoning defenses. For platform teams confronting the telemetry scale described in the agent-harness runtime security analysis, Datadog’s breadth makes vendor consolidation credible—but only after a pilot measures remediation errors, ingest cost, and whether agent controls work across the team’s actual toolchain.