The company, which went public in 2019, saw its stock price jump 20% on Thursday in response to the earnings report. With a market capitalization of around $ 40 billion, Datadog is the most valued publicly traded technology company headquartered in New York City.
The company sells software that helps businesses monitor their cloud applications for global usage and cyber threats. It has 1,600 corporate customers, who pay $ 100,000 or more per year for Datadog’s suite of products.
“Companies must increasingly focus on digital,” CEO Oliver Pomel said on Thursday in a call to investors.
This digitally driven demand is stimulating local startups.
Dataiku, a Flatiron District startup that helps companies harness artificial intelligence and machine learning, on Thursday announced a deal for $ 400 million in venture capital funding.
The company is now one of the city’s most valued private startups, with $ 4 billion. Its backers include Tiger Global, which led the last round, and FirstMark Capital.
New York corporate startups, those that make a tech product for businesses, raised $ 6.7 billion from venture capitalists in the first half of the year, according to a recent report by the local business investment firm Work-Bench.
The first half investment exceeded the total volume of companies in New York for last year. Jonathan Lehr, co-founder and general partner of Work-Bench, said the industry is among the fastest growing in the tech scene.
“New York City has the most Fortune 500 companies in the world, and that’s where startups are going to make their money and get big,” Lehr said. “There is no better place to do it than in New York City, where you have the opportunity to interact with these companies. “
In the city, there were also several “exits”, the term for when a startup goes public or is acquired. UIPath, which makes automation software, debuted on the New York Stock Exchange at a market value of around $ 30 billion.
Work-Bench closed a new $ 100 million venture capital fund, money that could be used to find and launch the next Datadog. Lehr said the company is focused on driving $ 3-6 million investment cycles for early stage startups focused on business and targeting large markets.
Enterprise technology is also helping the city’s office market. Cockroach Labs, a cloud database provider for businesses, recently sublet the former 65,000 square foot Peloton headquarters in SoHo. Chainalysis, which helps companies more securely engage in cryptocurrency markets, leased 40,000 square feet in the Flatiron District.
Note: This article has been updated to clarify the Work-Bench investment plan.