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00:00Analysts just reading through the notes today highlighting just the sky high valuation and perhaps maybe wanted more out of the outlook. What do you say to them. But I'll say we're very happy with a quarter we were be super happy with the year. And you know even more optimistic about what's coming next. I would say you know I don't pay too much attention to this stuff going up and down a few percent. Know every other day I think that's par for the course when you have really high growth. But overall I will say stock is up a lot in the past year and events has been under year. And I think judging by the pace of change in a digital transformation and club migration I think we're very optimistic about what's coming next. Talk to me about what's coming next. Because Rosenblatt security is was talking about your emphasis on RFID and maybe squeezing profits in the near term but really opening up a broader opportunity for growth down the line. How are you thinking about that mix between RFID spend versus profitability. Yes. So we actually had a very good year. It wasn't in 2020 for profitability. We grew 66 percent for the year with 14 percent in free cash flow which I think in a way it's hard to ask for more than that. The business is not any different. I think we could be profitable quite a bit if we if we so wished. But we are at the very beginning of what's a very logical opportunity. You know the whole world companies big and small are moving to from legacy to public and private cloud and we're investing to capture as much of that market as possible. So the truth of it is this year we're planning to hire as much as we can without breaking the company. Basically we can capture that market. Is that more of an international market. It's everywhere. It's everywhere. You know it's in the U.S. And you know what's really interesting is one thing we've seen this year with the pandemic is that of course there was a there were a lot of success stories that you would expect to suggest for example customers in streaming or in video games or you know in e-commerce that did really well and grew a lot and grew up with us. But perhaps more surprisingly we also saw customers in industries that were really impacted by code that also embarked in their transformation and cut migration. You know I'm thinking of airlines amusement parks hotel hotel chains and the committees that are really in a tough spot right now. I don't understand any wanted to modernize. Basically what it means is you know there's a very logical opportunity ahead of us and we're going to go after it. Yeah. Have some of those companies indicated to you that tax spend is going to come back really strong when it can. Well as far as we're concerned we're where the spending is going. We're in the next generation wearing the cloud where the investment is being made into part of the standard is growing very fast. So there was never a concern for ISE that this was going to compress and go away. I think what's fascinating about the growth of your company and analysts are Heidi highlighting that of companies with annual recurring revenue of more than a million dollars has grown to ninety seven in your company from just 50 a year ago. What is the focus. What can we expect from you on a focus of companies with a hundred thousand of recurring annual revenue going out now to at least a million. You know what's really interesting is in this new world a crude wall cloud world developers that work in small companies most startups actually use a lot of the same tools as developers at working in the very largest Fortune 500 organizations. And we actually serve that whole spectrum. We serve customers that are very low end of that. Even your customers don't pass any money to students individuals. And we also serve the largest organization that pay us millions or even more every year. And so as far as we're concerned we're growing everything. We're serving the developers. And I would say that equally distributed all of those categories. You also recently announced an agreement to acquire. I believe it's screen a security platform. We've all really been focused on security. How does this help you push forward to the future given how much security has become an increased focus. Yes definitely. Security is on everybody's minds right now. What's really interesting about creating is that the company focuses on is application security. And when you think about it we're all using more and more applications more mobile data is being manipulated by these applications. And so these applications are getting more and more complex and more and more of them are being developed. But at the same time it's really really hard to secure domesticating more complex I mean the developers and build them to have a hard time of understanding all the applications even work. So it's even harder to secure them. What's really interesting there is that what we do for a living one idea that I doggies. We have customers. Developers understand what the applications are doing. They're working and basically tamed the complexity for them. So this is really a logical next step for us and that we understand the application will make it easier for them to understand them. Then we help them protect key applications and secure them. What do we expect more acquisitions like this in the future potentially. I mean we've announced to yesterday we've done a few last year. We have a very large market ahead of us and very large program space we can sell for customers. And so some of that will solve our sales by hiring engineering teams and building products and spending the years it takes to learn to market. And in some other cases when we can we will accelerate and acquire and leapfrog basically that whole category.

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Datadog CEO on Company's Cautious Outlook

Datadog Inc. co-founder and Chief Executive Officer Olivier Pomel discusses analysts' cautious outlook on the company despite seeing strong customer growth. He speaks with Taylor Riggs on "Bloomberg Technology." (Source: Bloomberg)

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