<div id="readability-page-1"><p>Chief Executive Officer Pomel Olivier of <strong>Datadog</strong> <span>(DDOG<span> 1.58%</span>)</span> sold 122,482 shares through a series of option exercises and open-market sales totaling approximately $19.9 million on Oct. 7, 2025, Oct. 8, 2025, and Oct. 9, 2025, reducing his direct holdings to 533,358 shares as of Oct. 9, 2025, according to the SEC Form 4 filing.</p><h2 id="transaction-summary">Transaction summary</h2><div><table><tbody><tr><th>Metric</th><th>Value</th></tr><tr><td>Shares sold</td><td>122,482</td></tr><tr><td>Transaction value</td><td>~$19.9 million</td></tr><tr><td>Post-transaction shares</td><td>533,358</td></tr><tr><td>Post-transaction value (direct ownership)</td><td>~$87.5 million</td></tr></tbody></table></div><p><em>Transaction value based on SEC Form 4 weighted average purchase price ($162.17); post-transaction value based on Oct. 9, 2025 market close ($164.07).</em></p><h2 id="key-questions">Key questions</h2><p><strong>How does the size of this transaction compare to prior activity by Pomel Olivier?</strong><br/>The 122,482 shares sold on Oct. 9, 2025, exceed the historical median for administrative transactions, which is approximately 85,637 shares, representing 18.68% of direct holdings prior to the trade as of Oct. 9, 2025, a notably higher proportion than the recent-period median of 4.14% per disposition from July 8, 2024 to Oct. 9, 2025.</p><p><strong>What is the significance of the derivative component in this transaction?</strong><br/>This event involved the conversion of 198,718 Class B Common Stock derivative shares, followed by an immediate open-market sale of 122,482 shares on Oct. 9, 2025. Such option-related activity is typical for executive liquidity events.</p><p><strong>What is the impact on Pomel Olivier's remaining ownership and option capacity?</strong><br/>After the transaction, direct ownership stands at 533,358 shares (~$87.5 million as of Oct. 9, 2025; value based on closing price on that date). This represents 0.1529% of outstanding shares.</p><p><strong>How does the transaction price compare to recent market levels and the stock's performance?</strong><br/>The shares were sold at a weighted average price of approximately $162.17 per share on Oct. 9, 2025. The current price as of Oct. 11, 2025, is $158.74.</p><h2 id="company-overview">Company overview</h2><div><table><tbody><tr><th>Metric</th><th>Value</th></tr><tr><td>Revenue (TTM)</td><td>$3.02 billion</td></tr><tr><td>Net income (TTM)</td><td>$124.58 million</td></tr><tr><td>Price (as of market close Oct. 9, 2025)</td><td>$162.17</td></tr><tr><td>1-year price change</td><td>22.29%</td></tr></tbody></table></div><p>*1-year performance calculated using Oct. 9, 2025, as the reference date.</p><h2 id="company-snapshot">Company snapshot</h2><p>Datadog offers a cloud-native SaaS platform for infrastructure monitoring, application performance management, log analytics, and security monitoring, with additional features such as dashboards, alerting, and collaboration tools.</p><p>The company serves developers, IT operations teams, and business users across North America and international markets, targeting organizations with complex cloud and hybrid environments.</p><p>Datadog is a leading provider of cloud-based monitoring and analytics solutions, enabling organizations to achieve real-time observability across their technology stacks. The company leverages a unified SaaS platform to address the needs of modern enterprises operating in dynamic, cloud-centric environments.</p><h2 id="foolish-take">Foolish take</h2><p>The stock sale Pomel executed earlier this month was significant but it probably isn't a sign the CEO expects a downturn ahead. All of the company's named executive officers were paid a base salary of $425,000 in 2024. The vast majority of their income comes in the form of equity awards or stock options. </p><p>Pomel's recent sale could be an attempt to take some profits off the table. Datadog stock has risen about 75% over the past six months.</p><p>Demand for Datadog's observability and security platform is on the rise. This year, revenue is expected to reach $3.317 billion at the midpoint of management's guided range. The sales guidance implies a gain of 24% over last year's performance. In 2024, sales grew by 26% year over year.</p><p>While sales have been on the rise, Datadog's bottom line hasn't kept up. Trailing 12-month earnings per share are down by about 33% over the past year. This year, management is forecasting adjusted earnings in a range between $1.80 and $1.83 per share. The guided range is in line with adjusted earnings that reached $1.82 per share last year. </p><h2 id="glossary">Glossary</h2><p><strong>Option exercise:</strong> The act of converting options into company shares, typically by company insiders or employees.<br/><strong>Open-market sale:</strong> Selling shares directly on a public stock exchange, rather than through a private transaction.<br/><strong>SEC Form 4:</strong> A required filing that discloses insider trades by company officers, directors, or major shareholders.<br/><strong>Derivative shares:</strong> Shares acquired through financial instruments like options, rather than purchased directly on the market.<br/><strong>Class B common stock:</strong> A type of company share, often with different voting rights or conversion features compared to Class A shares.<br/><strong>Liquidity event:</strong> An occurrence allowing shareholders to convert holdings into cash, such as selling stock after exercising options.<br/><strong>Direct holdings:</strong> Shares owned outright by an individual, not including indirect or derivative interests.<br/><strong>Outstanding shares:</strong> The total number of a company’s shares that are currently held by all shareholders.<br/><strong>Weighted average price:</strong> The average price of shares sold, weighted by the number of shares at each price.<br/><strong>SaaS (Software as a Service):</strong> A software delivery model where applications are accessed online rather than installed locally.<br/><strong>Observability:</strong> The ability to monitor and understand the internal state of complex systems using data and analytics.<br/><strong>TTM:</strong> The 12-month period ending with the most recent quarterly report.<br/></p>                                                                            </div>

DDOG

<p>Datadog CEO Pomel Olivier sold 122,482 shares worth approximately $19.9 million between October 7-9, 2025, reducing his holdings to 533,358 shares. This sale exceeded the historical median for such transactions and involved the conversion of Class B Common Stock derivatives. Despite the significant sale, it is not seen as a sign of an impending downturn, as demand for Datadog's services continues to rise, with expected revenue growth of 24% this year. However, trailing earnings per share have declined by about 33% over the past year.</p>

Datadog's CEO Sells 122K Shares Worth $19.9 MillionDatadog CEO Sells 122,482 Shares Worth $19.9 Million