Datadog Q2 revenue jumps 36% but guidance tempered by largest customer's usage cut

Datadog reported Q2 revenue of $1.12 billion, up 36% year over year, but tempered guidance after its largest customer reduced usage. Billings rose 38% to $1.18 billion and remaining performance obligations 43% to $3.47 billion. Gross margin was 79.6%, operating income $257 million, and free cash flow $279 million. Non-AI revenue growth accelerated to high-20s percent. AI-native customers surpassed 750, including 31 spending over $1 million annually. Q3 guidance implies 28-29% growth.