Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Datadog, Inc. managed to exceed analyst expectations in revenue and earnings, demonstrating impressive growth with revenues reaching $548 million, a remarkable 25% increase year-over-year, surpassing the high end of their guidance range.</li><li>However, new logo activity remained robust, with many new deals exceeding $100,000 in annual commitment for the second consecutive quarter.</li><li>Datadog achieved significant milestones in its product offerings, with infrastructure monitoring ARR surpassing $1 billion, APM suite exceeding $500 million in ARR, and log management product crossing the $500 million threshold in ARR.</li></ul>

Datadog, Inc. managed to exceed analyst expectations in revenue and earnings, demonstrating impressive growth with revenues reaching $548 million, a remarkable 25% increase year-over-year, surpassing the high end of their guidance range.However, new logo activity remained robust, with many new deals exceeding $100,000 in annual commitment for the second consecutive quarter.Datadog achieved significant milestones in its product offerings, with infrastructure monitoring ARR surpassing $1 billion, APM suite exceeding $500 million in ARR, and log management product crossing the $500 million threshold in ARR.

Datadog Inc.: Will The Acquisition Of Actiondesk Boost Customer Growth? - Major Drivers

<ul><li>Datadog, Inc. exceeded analyst expectations in terms of revenue as well as earnings.</li><li>The revenue of $509 million exceeded the high end of its guidance range and increased by 25% year over year.</li><li>During Q2, customers kept checking prices and maximizing their use of the cloud and observability, especially some with higher spending levels.</li></ul>

Datadog, Inc. exceeded analyst expectations in terms of revenue as well as earnings.The revenue of $509 million exceeded the high end of its guidance range and increased by 25% year over year.During Q2, customers kept checking prices and maximizing their use of the cloud and observability, especially some with higher spending levels.

Datadog Inc.: Improved Log Management Capabilities & Other Major Developments

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Following takeover rumors surrounding <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a> , private equity firms finally agreed to acquire a US-based low-cost observability provider for ~$6.5B.</li>
<li>American private equity firm Francisco Partners and global alternative asset manager TPG offered $87 per <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a> share in an all-cash transaction.</li>
<li>The <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a> Board of Directors approved the buyout deal, and is expected to close in late 2023 or early 2024.</li>
</ul>


Following takeover rumors surrounding New Relic Inc (NEWR US) , private equity firms finally agreed to acquire a US-based low-cost observability provider for ~$6.5B.
American private equity firm Francisco Partners and global alternative asset manager TPG offered $87 per New Relic Inc (NEWR US) share in an all-cash transaction.
The New Relic Inc (NEWR US) Board of Directors approved the buyout deal, and is expected to close in late 2023 or early 2024.


New Relic Takeover Valuation Analysis: The Buyout Price Looks Reasonable

<ul>
<li>
<a href="https://www.smartkarma.com/entities/elastic-nv" target="_blank" data-smartkarma-citation="entities:27526:1" rel="noopener">Elastic NV (ESTC US)</a> reported a solid 4QFY23, reflecting a stronger-than-expected non-GAAP operating margin of ~9% and GAAP subscription gross margin of ~79%. </li>
<li>Elastic cloud revenue grew 28% y/y, representing 40% of total revenue. Elastic cloud is scaling well, and margins improved faster-than-anticipated. </li>
<li>We are concerned about slowing H1 FY24 y/y growth in total revenue and failure to achieve the $2B revenue mark in FY25. Price target to $112.</li>
</ul>



Elastic NV (ESTC US) reported a solid 4QFY23, reflecting a stronger-than-expected non-GAAP operating margin of ~9% and GAAP subscription gross margin of ~79%. 
Elastic cloud revenue grew 28% y/y, representing 40% of total revenue. Elastic cloud is scaling well, and margins improved faster-than-anticipated. 
We are concerned about slowing H1 FY24 y/y growth in total revenue and failure to achieve the $2B revenue mark in FY25. Price target to $112.


Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133

<ul><li>Datadog had a good Q1 as they exceeded analyst expectations on all fronts, with revenue of $482 million, a 33% YoY increase, and added approximately 1,400 net new customers.</li><li>The company observed growth from existing customers and continued to see customers optimizing their cloud spend.</li><li>In addition, Datadog made significant advancements in its product offerings, introducing new security capabilities such as Application Vulnerability Management and enhancing its Cloud Security Management product.</li></ul>

Datadog had a good Q1 as they exceeded analyst expectations on all fronts, with revenue of $482 million, a 33% YoY increase, and added approximately 1,400 net new customers.The company observed growth from existing customers and continued to see customers optimizing their cloud spend.In addition, Datadog made significant advancements in its product offerings, introducing new security capabilities such as Application Vulnerability Management and enhancing its Cloud Security Management product.

Datadog Inc.: Can The Codiga Acquisition Bring It To A Whole New Level In Observability? – Key Drivers

United States

Datadog, Inc. provides software solutions. The Company offers cloud-based monitoring and analytics platform which integrates and automates infrastructure monitoring, application performance monitoring, and log management for real-time observability of customers. Datadog operates worldwide.

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Datadog (DDOG US)

Datadog Inc.: Will The Acquisition Of Actiondesk Boost Customer Growth? - Major Drivers

Datadog, Inc. managed to exceed analyst expectations in revenue and earnings, demonstrating impressive growth with revenues reaching $548 million,...

Baptista Research

Datadog Inc.: Improved Log Management Capabilities & Other Major Developments

Datadog, Inc. exceeded analyst expectations in terms of revenue as well as earnings. The revenue of $509 million exceeded the high end of its...

Baptista Research

New Relic Takeover Valuation Analysis: The Buyout Price Looks Reasonable

Private equity firms Francisco Partners and TPG have agreed to acquire New Relic for ~$6.5B, with the deal expected to close in late 2023 or early...

Andrei Zakharov

Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133

Elastic remains my top pick in the observability and search space, and I see the potential for revenue growth re-acceleration in 2024.

Andrei Zakharov

Datadog Inc.: Can The Codiga Acquisition Bring It To A Whole New Level In Observability? – Key Drivers

Datadog had a good Q1 as they exceeded analyst expectations on all fronts, with revenue of $482 million, a 33% YoY increase, and added...

Baptista Research

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Datadog Inc.: Will The Acquisition Of Actiondesk Boost Customer Growth? - Major Drivers

Datadog, Inc. managed to exceed analyst expectations in revenue and earnings, demonstrating impressive growth with revenues reaching $548 million,...

Baptista Research

Datadog Inc.: Improved Log Management Capabilities & Other Major Developments

Datadog, Inc. exceeded analyst expectations in terms of revenue as well as earnings. The revenue of $509 million exceeded the high end of its...

Baptista Research

New Relic Takeover Valuation Analysis: The Buyout Price Looks Reasonable

​Private equity firms Francisco Partners and TPG have agreed to acquire New Relic for ~$6.5B, with the deal expected to close in late 2023 or early...

Andrei Zakharov

Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133

Elastic remains my top pick in the observability and search space, and I see the potential for revenue growth re-acceleration in 2024.

Andrei Zakharov

Datadog Inc.: Can The Codiga Acquisition Bring It To A Whole New Level In Observability? – Key Drivers

Datadog had a good Q1 as they exceeded analyst expectations on all fronts, with revenue of $482 million, a 33% YoY increase, and added...

Baptista Research

Private equity firms Francisco Partners and TPG have agreed to acquire New Relic for ~$6.5B, with the deal expected to close in late 2023 or early...