Datadog's Backlog Grows Faster Than Sales

Datadog's financial filings reveal a key metric, Remaining Performance Obligations (RPO), showing robust future growth. As of 2026, RPO reached $3.48 billion, marking a significant 51% increase year-over-year. This growth rate substantially exceeds the company's 32% revenue increase, signaling accelerating customer demand and commitment.

This expanding backlog is attributed to customers entering into more multi-year contracts, increasing the RPO duration. The company also reported an all-time record for new logo bookings, which more than doubled compared to the previous year. This indicates that new customers are signing larger, longer-term agreements.

The substantial 51% expansion in RPO, driven by a record number of new clients, addresses investor concerns about concentration risk. It demonstrates that Datadog's future revenue is secured by a widening customer base rather than relying heavily on a few large accounts.