Observing Fortunes: Datadog and Workiva

The season of quarterly reports draws near, and with it, the inevitable scrutiny of those enterprises most engaged in the current pursuit of artificial intelligence. It is, perhaps, a little vulgar to speak of ‘returns’ as if one were discussing a successful marriage settlement, but the market, as ever, demands a reckoning. Two companies, Datadog and Workiva, though not solely devoted to this fashionable new technology, have begun to integrate it into their established operations, and with results that warrant, if not enthusiastic praise, at least a circumspect observation.

Both will present their accounts for the last quarter on the tenth and nineteenth of February, respectively. It may prove diverting to consider their prospects.

Datadog: A Keen Eye for Observability

Datadog has established itself as a purveyor of ‘cloud observability,’ a term which, whilst lacking the elegance of a well-turned phrase, denotes a capacity for discerning potential difficulties in a company’s digital infrastructure. A most useful talent, certainly, preventing minor inconveniences from escalating into matters of considerable expense and embarrassment. Their clientele spans a variety of industries, from those engaged in retail to the more fanciful world of entertainment, and even, it is said, the healing arts.

They have recently introduced an ‘AI assistant,’ christened Bits, intended to expedite workflows. However, it is their newer offerings – particularly LLM Observability – that appear to be capturing the attention of those most concerned with managing the costs and potential flaws inherent in these large language models. A prudent measure, to be sure, as a model’s accuracy, like a lady’s reputation, is a fragile thing.

Many enterprises, lacking the resources to construct such models themselves – a task demanding both considerable capital and a degree of technical expertise few possess – are opting to acquire them from established providers, such as OpenAI. Datadog, recognizing this trend, offers a service to monitor their usage, costs, and performance. A sensible arrangement, avoiding the necessity of reinventing the wheel, or, indeed, constructing an entirely new carriage.

At the close of the last quarter, Datadog boasted over thirty-two thousand customers, of whom more than five thousand were utilizing their AI products – a rise of sixty-seven percent over the previous year. Moreover, these AI-inclined patrons accounted for twelve percent of the company’s total revenue, a doubling from the year before. Mr. Obstler, their Chief Financial Officer, assures us that this momentum is continuing, a statement which, whilst lacking the flourish of a romantic declaration, is nonetheless encouraging. The stock, currently experiencing a decline, may offer a judicious entry point for those inclined to speculate.

Workiva: Bringing Order to Complexity

Large organizations, it is often observed, are burdened by a multitude of digital applications, creating a veritable chaos of data. Workiva offers a platform to consolidate this information, providing a single, authoritative source of truth. A most desirable quality, particularly for those tasked with preparing reports for both internal consumption and the scrutiny of regulatory bodies.

Their platform includes a library of pre-designed templates, expediting the creation of these reports. They have recently added an AI assistant, capable of transforming simple instructions into detailed content. For example, a manager requiring a cybersecurity disclosure for a filing with the Securities and Exchange Commission need only prompt the assistant, saving both time and, presumably, a degree of exasperation.

The assistant, it is claimed, possesses a comprehensive understanding of all documents within the Workiva platform, allowing it to provide contextually relevant responses. Its accessibility across the Workiva ecosystem further enhances its utility. A convenient arrangement, though one cannot help but wonder if such assistance might not encourage a certain degree of indolence amongst those accustomed to independent thought.

Workiva’s revenue experienced a growth of twenty-one percent in the last quarter, matching their highest rate of the year. This success appears to be driven by their most substantial clients, with the number of businesses spending at least $300,000 and $500,000 annually increasing by forty-one and forty-two percent, respectively. These rates, it is noted, are accelerating. The company has consequently raised its full-year revenue forecast to $881 million, a figure investors may anticipate on the nineteenth of February. A favourable report, one suspects, would be met with a corresponding increase in the stock’s valuation.

2026-01-31 13:43

Datadog: A Keen Eye for Observability

Workiva: Bringing Order to Complexity

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