Don't agree with all your perspectives on companies, but this has become one of my most liked finance Substacks because of the breadth of coverage and simple consistency!
I appreciate what you do Brad, thank you! I must say your research does influence my decisions. We think alike on Disney, you helped me understand UPST, and you show how earnings paint a picture of a company’s future trajectory. 🙌
Hi! Found the following insightful post by Jamin Ball on Twitter/X. Still no intent to buy DDOG?
<<Datadog has done an incredible job layering on additional products past their initial "wedge" to become a true platform - and they gave us some data on this today. As the market puts a greater emphasis on bundled platforms today vs point solutions, they appear to be an incremental winner of market share.
Creating a successful second product line (let alone 3, 4, 5, etc) is really hard. As an investor I try and find companies and products with what I call "strategic real estate." That is - a company who's initial wedge (product) is large enough to create a big outcome, but also strategic enough to build a platform around (ie layer on products 2, 3, 4, etc). This creates a call option. The reality is, most companies don't have enough strategic real estate in their initial wedge to ever become a platform. Few companies have the right to become a platform, and an even smaller number successfully exercise that right and build a successful product 2, 3, 4.
Datadog's initial wedge was infrastructure monitoring. Today they disclosed that product line is >$1B ARR!
They also disclosed their application performance monitoring (APM) product is >$500m ARR!
And to top it off, they disclosed their log management product is >$500m ARR!
Product 2 and 3 for Datadog are already >$500m ARR. The vast vast majority of software companies never come close to this scale, and Datadog has now done it multiple times with 3 different products.
Datadog is one of the preeminent examples of a) nailing an initial wedge and then b) layering on additional products to create a true platform.
Some additional stats that demonstrate the success of their platform buildout:
"As of the end of Q3, 82% of customers were using 2 or more products, up from 80% a year ago. 46% of customers were using 4 or more products, up from 40% a year ago and 21% of our customers were using 6 or more products, up from 16% last year.">>
Don't agree with all your perspectives on companies, but this has become one of my most liked finance Substacks because of the breadth of coverage and simple consistency!
The best quarterly earnings reviews. They are thorough, insightful and to the point. I appreciate your opinion and transparency. Thank you!
Great work!
I appreciate what you do Brad, thank you! I must say your research does influence my decisions. We think alike on Disney, you helped me understand UPST, and you show how earnings paint a picture of a company’s future trajectory. 🙌
Hi! Found the following insightful post by Jamin Ball on Twitter/X. Still no intent to buy DDOG?
<<Datadog has done an incredible job layering on additional products past their initial "wedge" to become a true platform - and they gave us some data on this today. As the market puts a greater emphasis on bundled platforms today vs point solutions, they appear to be an incremental winner of market share.
Creating a successful second product line (let alone 3, 4, 5, etc) is really hard. As an investor I try and find companies and products with what I call "strategic real estate." That is - a company who's initial wedge (product) is large enough to create a big outcome, but also strategic enough to build a platform around (ie layer on products 2, 3, 4, etc). This creates a call option. The reality is, most companies don't have enough strategic real estate in their initial wedge to ever become a platform. Few companies have the right to become a platform, and an even smaller number successfully exercise that right and build a successful product 2, 3, 4.
Datadog's initial wedge was infrastructure monitoring. Today they disclosed that product line is >$1B ARR!
They also disclosed their application performance monitoring (APM) product is >$500m ARR!
And to top it off, they disclosed their log management product is >$500m ARR!
Product 2 and 3 for Datadog are already >$500m ARR. The vast vast majority of software companies never come close to this scale, and Datadog has now done it multiple times with 3 different products.
Datadog is one of the preeminent examples of a) nailing an initial wedge and then b) layering on additional products to create a true platform.
Some additional stats that demonstrate the success of their platform buildout:
"As of the end of Q3, 82% of customers were using 2 or more products, up from 80% a year ago. 46% of customers were using 4 or more products, up from 40% a year ago and 21% of our customers were using 6 or more products, up from 16% last year.">>
8.Nov.2023
https://twitter.com/jaminball/status/1722049704878637183