Green House Capital, part of Leeds-headquartered energy company Molecular Energies, has acquired a majority stake in a Paraguayan financial technology business.
GHC has acquired a 70 per cent beneficial interest in Quanto, a fintech company that has developed an app-based payment system which can be used both inside and outside Paraguay.
The purchase has been made by way of the acquisition of the entire issued share capital of President Investments Paraguay SA for the discounted sum of £25,000 from Alpha Energies Invest, a company beneficially owned by chairman Peter Levine.
The consideration payable only on a successful completion of the proposed spin-out and IPO of GHC.
A statement from Molecular Energies said: "GHC will pivot the developed app, which is already at beta testing stage, into an area of business not currently being adequately served in Paraguay and the region. It is intended to have a green aspect and also potential features where there will be synergy with other group businesses.
"A team of developers for this further stage of the app is being identified with a view to completing work and launching the product in 2024."
Molecular Energies has also reported progress on engineering work to enable the conversion of diesel engines to run on a mixture of diesel and hydrogen.
Proof of concept work on a complete diesel engine is set to take place in the UK starting within the next month, with the test engine now placed in the test cell with installation of the gas detection system and hydrogen pipework completed. The test cell is located at the engine test building at Helical Technical Centre, Warton, Lancashire, which is also used by automotive companies such as Bentley, McClaren and Cummins.
Second quarter revenue grew 25% year-over-year to $509 million
Strong growth of larger customers, with about 2,990 $100k+ ARR customers, up from about 2,420 a year ago
Announced innovations for Generative AI, Observability, Security, Developer Experience, and Cost Management at DASH 2023
Named a Leader in the 2023 Gartner Magic Quadrant for Application Performance Monitoring and Observability
NEW YORK, Aug. 8, 2023 /PRNewswire/ -- Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its second quarter ended June 30, 2023.
"We continued to execute well in the second quarter, with 25% year-over-year revenue growth, strong new logo bookings, continued customer growth, and increased multi-product adoption by our customers," said Olivier Pomel, co-founder and CEO of Datadog.
Pomel added, "Last week at our annual user conference, DASH, we announced dozens of new products and capabilities, showcasing our rapid innovation at scale. We launched new AI offerings including LLM Observability, the Bits AI assistant, and over a dozen new AI-related integrations. And we broadened our platform across Observability, Cloud Security, Developer Experience, and Cost Optimization use cases."
Second Quarter 2023 Financial Highlights:
- Revenue was $509.5 million, an increase of 25% year-over-year.
- GAAP operating loss was $(22.0) million; GAAP operating margin was (4)%.
- Non-GAAP operating income was $106.5 million; non-GAAP operating margin was 21%.
- GAAP net loss per diluted share was $(0.01); non-GAAP net income per diluted share was $0.36.
- Operating cash flow was $153.2 million, with free cash flow of $141.7 million.
- Cash, cash equivalents, and marketable securities were $2.2 billion as of June 30, 2023.
Second Quarter & latest Business Highlights:
- As of June 30, 2023, we had about 2,990 customers with ARR of $100,000 or more, an increase of 24% from about 2,420 as of June 30, 2022.
- Announced a new Large Language Model (LLM) observability solution and over a dozen new integrations, to enable organizations building their LLM-based applications to monitor and troubleshoot Large Language Model stacks.
- Announced Bits AI, a new Generative AI-based assistant that learns from customers' observability data and helps engineers resolve application issues in real time.
- Announced Historical Investigations with Cloud SIEM, with new detection and exploration capabilities so security teams can conduct historical investigations and uncover threats hidden within their cloud and IT environments.
- Announced the general availability of Security Inbox for Cloud Security Management, a new capability for Security and DevOps engineers to prioritize and remediate the most important security issues impacting their production applications.
- Announced the general availability of Intelligent Test Runner, which helps save developer time and minimize failures in organizations' CI/CD pipelines by automatically selecting and running only the tests that are relevant to code changes.
- Launched Flex Logs for Log Management. Built on top of Datadog's Husky technology, Flex Logs enables organizations to keep high-volume logs for long periods of time.
- Named a leader in the 2023 Gartner Magic Quadrant for Application Performance Monitoring and Observability. This is the third year in a row Gartner has positioned Datadog as a Leader in its Magic Quadrant.
- Extended new capabilities for Cloud Cost Management including container cost allocation, cost monitors and support for Microsoft Azure.
- Announced the general availability of Workflow Automation. This new product enables teams to automate end-to-end remediation processes - with out-of-the-box actions and pre-built templates - across all systems, apps and services to help identify, investigate and resolve service disruptions and security threats faster.
- Released new capabilities and integrations for Microsoft Azure at Microsoft Build, including support for Azure OpenAI Service, Azure Arc, Cloudcraft for Azure and Cloud Cost Management for Azure.
- Announced an integration that monitors OpenAI API usage patterns, costs and performance for various OpenAI models, including GPT-4 and other completion models.
Third Quarter and Full Year 2023 Outlook:
Based on information as of today, August 8, 2023, Datadog is providing the following guidance:
- Third Quarter 2023 Outlook:
- Revenue between $521 million and $525 million.
- Non-GAAP operating income between $98 million and $102 million.
- Non-GAAP net income per share between $0.33 and $0.35, assuming approximately 354 million weighted average diluted shares outstanding.
- Full Year 2023 Outlook:
- Revenue between $2.05 billion and $2.06 billion.
- Non-GAAP operating income between $390 million and $400 million.
- Non-GAAP net income per share between $1.30 and $1.34, assuming approximately 351 million weighted average diluted shares outstanding.
Datadog has not reconciled its expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog's results computed in accordance with GAAP.
Conference Call Details:
- What: Datadog financial results for the second quarter of 2023 and outlook for the third quarter and the full year 2023
- When:August 8, 2023 at 8:00 A.M. Eastern Time (5:00 A.M. Pacific Time)
- Dial in: To access the call in the U.S., please register here. Callers are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
- Webcast:https://investors.datadoghq.com (live and replay)
- Replay: A replay of the call will be archived on the investor relations website
About Datadog
Datadog is the observability and security platform for cloud applications. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, real-user monitoring, and many other capabilities to provide unified, real-time observability and security for our customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior, and track key business metrics.
Forward-Looking Statements
This press release and the earnings call referencing this press release contain "forward-looking" statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Datadog's strategy, product and platform capabilities, the benefits and expected closing of acquisitions, growth in and ability to capitalize on long-term market opportunities including the pace and scope of cloud migration and digital transformation, gross margins and operating margins including with respect to sales and marketing, research and development expenses, investments and capital expenditures, tax expense, net interest and other income as well as the impact of increased office activity and marketing, and Datadog's future financial performance, including its outlook for the third quarter and fiscal year 2023 and related notes and assumptions. These forward-looking statements are based on Datadog's current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Datadog's genuine results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to (1) our latest rapid growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our business depends on our existing customers purchasing additional subscriptions and products from us and renewing their subscriptions; (5) our ability to attract new customers; (6) our ability to effectively develop and expand our sales and marketing capabilities; (7) risk of a security breach; (8) risk of interruptions or performance problems associated with our products and platform capabilities; (9) our ability to adapt and respond to rapidly changing technology or customer needs; (10) the competitive markets in which we participate; (11) risks associated with successfully managing our growth; and (12) general market, political, economic, and business conditions including concerns about reduced economic growth and associated decreases in information technology spending. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (SEC), including in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 24, 2023. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and other filings and reports that we may file from time to time with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause genuine results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.
About Non-GAAP Financial Measures
Datadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per basic share, non-GAAP net income (loss) per diluted share, and free cash flow. Datadog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Datadog's financial performance. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Datadog's non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Datadog's reported financial results.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Datadog defines non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) employer payroll taxes on employee stock transactions; and (4) amortization of issuance costs. Datadog defines free cash flow as net cash provided by operating activities, minus capital expenditures and minus capitalized software development costs, if any. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.
Management believes these non-GAAP financial measures are useful to investors and others in assessing Datadog's operating performance due to the following factors:
Stock-based compensation. Datadog utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.
Amortization of acquired intangibles. Datadog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.
Employer payroll taxes on employee stock transactions. Datadog excludes employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of Datadog's common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of Datadog's business.
Amortization of issuance costs. In June 2020, Datadog issued $747.5 million of convertible senior notes due 2025, which bear interest at an annual fixed rate of 0.125%. Debt issuance costs, which reduce the carrying value of the convertible debt instrument, are amortized as interest expense over the term. The expense for the amortization of debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.
Additionally, Datadog's management believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. Free cash flow represents net cash provided by operating activities, reduced by capital expenditures and capitalized software development costs, if any. The reduction of capital expenditures and amounts capitalized for software development facilitates comparisons of Datadog's liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of our liquidity.
Operating Metrics
Datadog's number of customers with ARR of $100,000 or more is based on the ARR of each customer, as of the last month of the quarter.
We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. Users of our free trials or tier are not included in our customer count. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.
We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts, additional usage, usage from subscriptions for a committed contractual amount of usage that is delivered as used, and monthly subscriptions. ARR and MRR should be viewed independently of revenue, and do not represent our revenue under GAAP on a monthly or annualized basis, as they are operating metrics that can be impacted by contract start and end dates and renewal rates. ARR and MRR are not intended to be replacements or forecasts of revenue.
| Datadog, Inc. |
||||||||
| Three Months Ended |
Six Months Ended |
|||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Revenue | $ 509,460 | $ 406,138 | $ 991,174 | $ 769,168 | ||||
| Cost of revenue | 101,846 | 81,925 | 201,760 | 156,387 | ||||
| Gross profit | 407,614 | 324,213 | 789,414 | 612,781 | ||||
| Operating expenses: | ||||||||
| Research and development | 239,494 | 177,699 | 468,972 | 328,307 | ||||
| Sales and marketing | 147,455 | 115,270 | 292,426 | 216,436 | ||||
| General and administrative | 42,671 | 34,383 | 84,992 | 60,763 | ||||
| Total operating expenses | 429,620 | 327,352 | 846,390 | 605,506 | ||||
| Operating (loss) income | (22,006) | (3,139) | (56,976) | 7,275 | ||||
| Other income (loss): | ||||||||
| Interest expense | (1,526) | (4,541) | (3,707) | (9,788) | ||||
| Interest income and other income, net | 22,624 | 7,669 | 39,351 | 13,356 | ||||
| Other income, net | 21,098 | 3,128 | 35,644 | 3,568 | ||||
| (Loss) income before provision for income taxes | (908) | (11) | (21,332) | 10,843 | ||||
| Provision for income taxes | (3,061) | (4,868) | (6,723) | (5,984) | ||||
| Net (loss) income | $ (3,969) | $ (4,879) | $ (28,055) | $ 4,859 | ||||
| Net (loss) income per share - basic | $ (0.01) | $ (0.02) | $ (0.09) | $ 0.02 | ||||
| Net (loss) income per share - diluted | $ (0.01) | $ (0.02) | $ (0.09) | $ 0.01 | ||||
| Weighted average shares used in calculating net (loss) income per | ||||||||
| Basic | 322,215 | 314,795 | 320,788 | 314,130 | ||||
| Diluted | 322,215 | 314,795 | 320,788 | 345,444 | ||||
| (1) Includes stock-based compensation expense as follows: | ||||||||
| Cost of revenue | $ 4,157 | $ 2,355 | $ 7,882 | $ 4,008 | ||||
| Research and development | 75,730 | 53,309 | 150,433 | 98,005 | ||||
| Sales and marketing | 25,884 | 17,590 | 48,898 | 32,185 | ||||
| General and administrative | 12,566 | 9,145 | 23,852 | 15,085 | ||||
| Total | $ 118,337 | $ 82,399 | $ 231,065 | $ 149,283 | ||||
| (2) Includes amortization of acquired intangibles as follows: | ||||||||
| Cost of revenue | $ 2,064 | $ 1,482 | $ 4,080 | $ 2,895 | ||||
| Sales and marketing | 206 | 206 | 409 | 409 | ||||
| Total | $ 2,270 | $ 1,688 | $ 4,489 | $ 3,304 | ||||
| (3) Includes employer payroll taxes on employee stock transactions as follows: | ||||||||
| Cost of revenue | $ 109 | $ 70 | $ 169 | $ 172 | ||||
| Research and development | 5,360 | 2,829 | 9,953 | 6,126 | ||||
| Sales and marketing | 1,253 | 605 | 2,028 | 1,714 | ||||
| General and administrative | 1,143 | 217 | 2,108 | 474 | ||||
| Total | $ 7,865 | $ 3,721 | $ 14,258 | $ 8,486 | ||||
| (4) Includes amortization of issuance costs as follows: | ||||||||
| Interest expense | $ 846 | $ 842 | $ 1,691 | $ 1,682 | ||||
| Total | $ 846 | $ 842 | $ 1,691 | $ 1,682 | ||||
| Datadog, Inc. |
||||
| June 30, | December 31, | |||
| ASSETS | ||||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | $ 291,304 | $ 338,985 | ||
| Marketable securities | 1,894,058 | 1,545,341 | ||
| Accounts receivable, net of allowance for credit losses of $9,628 and $5,626 as of | 333,102 | 399,551 | ||
| Deferred contract costs, current | 37,502 | 33,054 | ||
| Prepaid expenses and other current assets | 44,104 | 27,303 | ||
| Total current assets | 2,600,070 | 2,344,234 | ||
| Property and equipment, net | 145,100 | 125,346 | ||
| Operating lease assets | 122,198 | 87,629 | ||
| Goodwill | 350,029 | 348,277 | ||
| Intangible assets, net | 12,409 | 16,365 | ||
| Deferred contract costs, non-current | 60,511 | 55,338 | ||
| Restricted cash | — | 3,303 | ||
| Other assets | 21,856 | 24,360 | ||
| TOTAL ASSETS | $ 3,312,173 | $ 3,004,852 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Accounts payable | $ 48,031 | $ 23,474 | ||
| Accrued expenses and other current liabilities | 127,009 | 171,158 | ||
| Operating lease liabilities, current | 18,852 | 22,092 | ||
| Deferred revenue, current | 567,470 | 543,024 | ||
| Total current liabilities | 761,362 | 759,748 | ||
| Operating lease liabilities, non-current | 125,694 | 76,582 | ||
| Convertible senior notes, net | 740,538 | 738,847 | ||
| Deferred revenue, non-current | 27,534 | 12,944 | ||
| Other liabilities | 7,686 | 6,226 | ||
| Total liabilities | 1,662,814 | 1,594,347 | ||
| STOCKHOLDERS' EQUITY: | ||||
| Common stock | 3 | 3 | ||
| Additional paid-in capital | 1,891,995 | 1,625,190 | ||
| Accumulated other comprehensive loss | (12,318) | (12,422) | ||
| Accumulated deficit | (230,321) | (202,266) | ||
| Total stockholders' equity | 1,649,359 | 1,410,505 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 3,312,173 | $ 3,004,852 | ||
| Datadog, Inc. |
||||||||
| Three Months Ended |
Six Months Ended |
|||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net (loss) income | $ (3,969) | $ (4,879) | $ (28,055) | $ 4,859 | ||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 10,550 | 8,118 | 20,825 | 15,512 | ||||
| (Accretion) amortization of (discounts) premiums on marketable securities | (8,096) | 2,738 | (13,291) | 6,697 | ||||
| Amortization of issuance costs | 846 | 842 | 1,691 | 1,682 | ||||
| Amortization of deferred contract costs | 9,348 | 6,558 | 17,996 | 12,580 | ||||
| Stock-based compensation, net of amounts capitalized | 118,337 | 82,399 | 231,065 | 149,283 | ||||
| Non-cash lease expense | 6,252 | 5,275 | 12,196 | 9,686 | ||||
| Allowance for credit losses on accounts receivable | 2,579 | 1,133 | 6,311 | 1,931 | ||||
| Loss on disposal of property and equipment | 333 | 326 | 421 | 1,149 | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 31,366 | (30,781) | 60,139 | (38,100) | ||||
| Deferred contract costs | (15,868) | (13,303) | (27,618) | (21,469) | ||||
| Prepaid expenses and other current assets | (1,013) | (4,238) | (16,823) | (12,629) | ||||
| Other assets | 2,077 | (947) | 2,241 | (1,752) | ||||
| Accounts payable | 6,352 | 30,803 | 24,897 | 23,179 | ||||
| Accrued expenses and other liabilities | (16,009) | (1,399) | (44,089) | (4,310) | ||||
| Deferred revenue | 10,073 | (9,685) | 39,039 | 72,050 | ||||
| Net cash provided by operating activities | 153,158 | 72,960 | 286,945 | 220,348 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of marketable securities | (632,547) | (389,079) | (1,390,334) | (718,785) | ||||
| Maturities of marketable securities | 520,669 | 317,051 | 1,018,317 | 516,754 | ||||
| Proceeds from sale of marketable securities | 15,292 | (1) | 36,633 | 2,006 | ||||
| Purchases of property and equipment | (2,339) | (5,987) | (11,078) | (15,501) | ||||
| Capitalized software development costs | (9,087) | (6,807) | (17,798) | (14,780) | ||||
| Cash paid for acquisition of businesses; net of cash acquired | (2,025) | (34,695) | (2,025) | (39,566) | ||||
| Net cash used in investing activities | (110,037) | (119,518) | (366,285) | (269,872) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from exercise of stock options | 5,436 | 2,206 | 7,534 | 6,451 | ||||
| Proceeds for issuance of common stock under the employee stock purchase plan | 19,986 | 13,557 | 19,986 | 13,557 | ||||
| Repayments of convertible senior notes | — | — | — | (3) | ||||
| Net cash provided by financing activities | 25,422 | 15,763 | 27,520 | 20,005 | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 213 | (2,242) | 836 | (2,871) | ||||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 68,756 | (33,037) | (50,984) | (32,390) | ||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 222,548 | 275,110 | 342,288 | 274,463 | ||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | $ 291,304 | $ 242,073 | $ 291,304 | $ 242,073 | ||||
| RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE: |
||||||||
| Cash and cash equivalents | $ 291,304 | $ 238,859 | $ 291,304 | $ 238,859 | ||||
| Restricted cash | — | 3,214 | — | 3,214 | ||||
| Total cash, cash equivalents and restricted cash | $ 291,304 | $ 242,073 | $ 291,304 | $ 242,073 | ||||
| Datadog, Inc. |
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| Three Months Ended |
Six Months Ended |
|||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Reconciliation of gross profit and gross margin | ||||||||
| GAAP gross profit | $ 407,614 | $ 324,213 | $ 789,414 | $ 612,781 | ||||
| Plus: Stock-based compensation expense | 4,157 | 2,355 | 7,882 | 4,008 | ||||
| Plus: Amortization of acquired intangibles | 2,064 | 1,482 | 4,080 | 2,895 | ||||
| Plus: Employer payroll taxes on employee stock transactions | 109 | 70 | 169 | 172 | ||||
| Non-GAAP gross profit | $ 413,944 | $ 328,120 | $ 801,545 | $ 619,856 | ||||
| GAAP gross margin | 80 % | 80 % | 80 % | 80 % | ||||
| Non-GAAP gross margin | 81 % | 81 % | 81 % | 81 % | ||||
| Reconciliation of operating expenses | ||||||||
| GAAP research and development | $ 239,494 | $ 177,699 | $ 468,972 | $ 328,307 | ||||
| Less: Stock-based compensation expense | (75,730) | (53,309) | (150,433) | (98,005) | ||||
| Less: Employer payroll taxes on employee stock transactions | (5,360) | (2,829) | (9,953) | (6,126) | ||||
| Non-GAAP research and development | $ 158,404 | $ 121,561 | $ 308,586 | $ 224,176 | ||||
| GAAP sales and marketing | $ 147,455 | $ 115,270 | $ 292,426 | $ 216,436 | ||||
| Less: Stock-based compensation expense | (25,884) | (17,590) | (48,898) | (32,185) | ||||
| Less: Amortization of acquired intangibles | (206) | (206) | (409) | (409) | ||||
| Less: Employer payroll taxes on employee stock transactions | (1,253) | (605) | (2,028) | (1,714) | ||||
| Non-GAAP sales and marketing | $ 120,112 | $ 96,869 | $ 241,091 | $ 182,128 | ||||
| GAAP general and administrative | $ 42,671 | $ 34,383 | $ 84,992 | $ 60,763 | ||||
| Less: Stock-based compensation expense | (12,566) | (9,145) | (23,852) | (15,085) | ||||
| Less: Employer payroll taxes on employee stock transactions | (1,143) | (217) | (2,108) | (474) | ||||
| Non-GAAP general and administrative | $ 28,962 | $ 25,021 | $ 59,032 | $ 45,204 | ||||
| Reconciliation of operating (loss) income and operating margin | ||||||||
| GAAP operating (loss) income | $ (22,006) | $ (3,139) | $ (56,976) | $ 7,275 | ||||
| Plus: Stock-based compensation expense | 118,337 | 82,399 | 231,065 | 149,283 | ||||
| Plus: Amortization of acquired intangibles | 2,270 | 1,688 | 4,489 | 3,304 | ||||
| Plus: Employer payroll taxes on employee stock transactions | 7,865 | 3,721 | 14,258 | 8,486 | ||||
| Non-GAAP operating income | $ 106,466 | $ 84,669 | $ 192,836 | $ 168,348 | ||||
| GAAP operating margin | (4) % | (1) % | (6) % | 1 % | ||||
| Non-GAAP operating margin | 21 % | 21 % | 19 % | 22 % | ||||
| Reconciliation of net (loss) income | ||||||||
| GAAP net (loss) income | $ (3,969) | $ (4,879) | $ (28,055) | $ 4,859 | ||||
| Plus: Stock-based compensation expense | 118,337 | 82,399 | 231,065 | 149,283 | ||||
| Plus: Amortization of acquired intangibles | 2,270 | 1,688 | 4,489 | 3,304 | ||||
| Plus: Employer payroll taxes on employee stock transactions | 7,865 | 3,721 | 14,258 | 8,486 | ||||
| Plus: Amortization of issuance costs | 846 | 842 | 1,691 | 1,682 | ||||
| Non-GAAP net income | $ 125,349 | $ 83,771 | $ 223,448 | $ 167,614 | ||||
| Net income per share - basic | $ 0.39 | $ 0.27 | $ 0.70 | $ 0.53 | ||||
| Net income per share - diluted | $ 0.36 | $ 0.24 | $ 0.64 | $ 0.49 | ||||
| Shares used in non-GAAP net income per share calculations: | ||||||||
| Basic | 322,215 | 314,795 | 320,788 | 314,130 | ||||
| Diluted | 348,551 | 344,854 | 347,311 | 345,444 | ||||
| Datadog, Inc. |
||||||||
| Three Months Ended |
Six Months Ended |
|||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Net cash provided by operating activities | $ 153,158 | $ 72,960 | $ 286,945 | $ 220,348 | ||||
| Less: Purchases of property and equipment | (2,339) | (5,987) | (11,078) | (15,501) | ||||
| Less: Capitalized software development costs | (9,087) | (6,807) | (17,798) | (14,780) | ||||
| Free cash flow | $ 141,732 | $ 60,166 | $ 258,069 | $ 190,067 | ||||
| Free cash flow margin | 28 % | 15 % | 26 % | 25 % | ||||
Contact Information
Yuka Broderick
Datadog Investor Relations
IR@datadoghq.com
Dan Haggerty
Datadog Public Relations
Press@datadoghq.com
Datadog is a registered trademark of Datadog, Inc.
All product and company names herein may be trademarks of their registered owners.
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SOURCE Datadog, Inc.
The world’s financial system faces an unprecedented “stress test” as banks and other institutions adjust to soaring borrowing costs, according to the head of the international body that monitors global finance.
“This scenario is clearly a stress test for the entire financial system. It’s unprecedented and there will be heightened risks for a couple of years,” said Klaas Knot, a European Central Bank policymaker who chairs the Switzerland-based Financial Stability Board, in an interview.
Central banks around the world have raised interest rates at a historic pace in latest months, hoping to quash inflation that has hit levels unseen since the 1970s. The jump in borrowing costs, following more than a decade of ultralow rates, has caused some institutions to stumble. Global markets were rocked in March by a string of U.S. bank failures and the state-engineered acquisition of Credit Suisse by Swiss peer UBS.
Reported Positive Feedback from US and EU Regulatory Meetings
Sale of Purnovate Significantly Reduces Cash Burn Rate
Charlottesville, Va., Aug. 21, 2023 (GLOBE NEWSWIRE) -- Adial Pharmaceuticals, Inc. (NASDAQ: ADIL; ADILW) (“Adial” or the “Company”), a clinical-stage biopharmaceutical company focused on developing therapies for the treatment and prevention of addiction and related disorders, today provided a business update and reported its financial results for the second quarter of 2023.
Cary Claiborne, President and Chief Executive Officer of Adial, stated, “We continue to advance AD04 to meaningful inflection points and recently received favorable feedback from our US and EU regulatory meetings. Following the feedback, we made a strategic decision to focus our efforts on obtaining FDA approval, as the US standard should translate to acceptance in other international markets. In addition, the FDA confirmed the primary endpoint based on Percentage of No Heavy Drinking Days (PNHDD)-patients who reduced their alcohol consumption to zero heavy drinking days in the last two months of a six-month study. Furthermore, the FDA acknowledged that our post hoc analysis showing a statistically and clinical meaningful effect in specific genetic subtypes was positive and promising but requested additional data to support an NDA submission. As a result, we are currently planning to conduct two Phase 3 trials with AD04 in parallel to support potential approval in the shortest timeframe possible. Toward this end, and now having received regulatory feedback, we are progressing our partnering discussions and intend to provide further updates as appropriate. Overall, we remain confident in AD04’s ability to address a significant unmet need for patients suffering from alcohol use disorder, representing an addressable market of approximately $40 billion in the U.S. alone. Moreover, the sale of our Purnovate business during the quarter provided non-dilutive funding and significantly reduced our current cash burn rate. Overall, we believe we are well positioned to execute on our development strategy, as well as reach meaningful milestones that we believe will drive significant value for shareholders.”
Other latest Developments
Purnovate
On May 16, 2023, Adovate, LLC, exercised its option for the purchase of the assets and business of the Company’s wholly owned subsidiary, Purnovate, Inc. The Option Agreement provides that the parties will enter into a final acquisition agreement for the sale of the Purnovate assets under previously agreed financial terms. Adovate was recently formed by William Stilley, co-founder and former CEO of Adial, for the sole purpose of acquiring, funding and advancing the Purnovate assets.
Adial received an upfront payment of $450 thousand on the notification date (May 8, 2023). After a final acquisition agreement is signed Adial will receive approximately $1.1 million for Purnovate expenditures incurred and paid by Adial after December 1, 2022. During the quarter Adial received $350 thousand in advance payment for reimbursement of those expenditures. Any Purnovate expenses incurred subsequent to May 15, 2023, are now the responsibility of Adovate. In addition, the Company will be entitled to receive up to approximately $11 million in development and approval milestones for each compound (up to $33 million in total development and approval milestones for the first three compounds alone), as well as a total of $50 million in additional commercial milestones, for a total consideration of up to $83 million with potential milestone payments on additional compounds. Additionally, the Company will receive a single digit royalty and has received a 19.9% equity stake in Adovate.
The transaction was independently evaluated and unanimously approved, first by the Adial Audit Committee of the Board of Directors, and then by its full Board of Directors, with Mr. Stilley, a current board member, abstaining from the vote.
Second Quarter 2023 Financial Results
- Cash Position: As of June 30, 2023, cash and cash equivalents were $1.2 million compared to $4.0 million as of December 31, 2022. The Company believes that its existing cash and cash equivalents, as well as the impact of the agreement to sell its Purnovate’s Assets and Business, will fund its operating expenses into the first quarter of 2024. Under the agreement, the Company received non-dilutive funding and the sale has significantly reduced its current cash burn rate.
- Research and Development expenses decreased by $250 thousand (37%) in the three months ended June 30, 2023 compared to the three months ended June 30, 2022. This decrease was driven partly by a reduction of approximately $96 thousand in direct development costs of AD04 as trial activities, which were winding down in the second quarter of 2022, were no longer taking place in the second quarter of 2023, replaced by less expensive regulatory consultations and data analysis. In addition, a one-time accrual of $155 thousand for a royalty due the University of Virginia Patent Foundation took place in the second quarter of 2022.
- General and Administration expenses decreased by $1.5 million (59%) in the three months ended June 30, 2023 compared to the three months ended June 30, 2022. This decrease was primarily due to expense reductions of approximately $0.9 million and lower equity compensation expense of approximately $0.4 million, which were due to reduced bonus payments and headcount.
- Net Income was $1.1 million for the three months ended June 30, 2023, compared to a net loss of $3.8 million for the three months ended June 30, 2022. Net Income for the second quarter of 2023 included a gain of $2.66 million as a result of the Purnovate Sale.
About Adial Pharmaceuticals, Inc.
Adial Pharmaceuticals is a clinical-stage biopharmaceutical company focused on the development of therapies for the treatment and prevention of addiction and related disorders. The Company’s lead investigational new drug product, AD04, is a genetically targeted, serotonin-3 receptor antagonist, therapeutic agent for the treatment of Alcohol Use Disorder (AUD) in heavy drinking patients and was recently investigated in the Company’s ONWARD™ pivotal Phase 3 clinical trial for the potential treatment of AUD in subjects with certain target genotypes (estimated to be approximately one-third of the AUD population) identified using the Company’s proprietary companion diagnostic genetic test. ONWARD showed promising results in reducing heavy drinking in heavy drinking patients, and no overt safety or tolerability concerns. AD04 is also believed to have the potential to treat other addictive disorders such as Opioid Use Disorder, gambling, and obesity. The Company is also developing adenosine analogs for the treatment of pain and other disorders. Additional information is available at www.adial.com.
Forward Looking Statements
Thiscommunicationcontainscertain"forward-lookingstatements"withinthemeaningoftheU.S.federal securities laws. Such statements are based upon various facts and derived utilizing numerous important assumptionsandaresubjecttoknownandunknownrisks,uncertaintiesandotherfactorsthatmaycause genuine results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts,althoughnotallforward-lookingstatementsincludetheforegoing.Theforward-lookingstatements include statements regarding FDA approval translating to acceptance in other international markets, plans to conduct two Phase 3 trials with AD04 in parallel to support potential approval in the shortest timeframe possible, progressing with partnering discussions and providing further updates as appropriate, AD04’s ability to address a significant unmet need for patients suffering from alcohol use disorder, representing an addressable market of approximately $40 billion in the U.S. alone, being well positioned to execute on the Company’s development strategy and reach meaningful milestones that will drive significant value for shareholders and the potential of AD04 to treat other addictive disorders such as opioid use disorder, gambling,andobesity.Anyforward-lookingstatementsincludedhereinreflectourcurrentviews,andthey involve certain risks and uncertainties, including, among others, our ability to pursue our regulatory strategy, our ability to advance ongoing partnering discussions, our ability to obtain regulatory approvals for commercialization of product candidates or to comply with ongoing regulatory requirements, our ability to develop strategic partnership opportunities and maintain collaborations, our ability to obtain or maintain the capital or grants necessary to fund our research and development activities, our ability to retain our key employees or maintain our Nasdaq listing, our ability to complete clinical trials on time and achieve desired results and benefits as expected, regulatory limitations relating to our ability to promote or commercialize our product candidates for specific indications, acceptance of our product candidates in the marketplace and the successful development, marketing or sale of our products, our ability to maintain our license agreements, the continued maintenance and growth of our patent estate and ourabilitytoretainourkeyemployeesormaintainourNasdaqlisting,.Theserisksshould notbeconstruedasexhaustiveandshouldbereadtogetherwiththeothercautionarystatementincluded in our Annual Report on Form 10-K for the year ended December 31, 2022, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required bylaw.
Contact:
Crescendo Communications, LLC
David Waldman / Alexandra Schilt
Tel: 212-671-1020
Email: ADIL@crescendo-ir.com
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