DDOG vs DOCN

Datadog emphasized AI-driven product innovation in Q4/FY2025, launching and GA-ing Bits AI SRE (an AI on-call agent) and showcasing LLM Observability, AI Security for AWS Resources, Cloud SIEM Risk Insights, and Bits AI remediation as part of an expanded AWS collaboration. The company reported strong financials: Q4 revenue of $953M (up 29% YoY), non-GAAP operating income of $230M, GAAP net income of $46.6M, and Q4 free cash flow of $291.0M. Management signaled continued AI investment and provided Q1 2026 and FY2026 revenue and non-GAAP EPS guidance, while cautioning that non-GAAP reconciliations are subject to variability from stock-based compensation and related items.

DigitalOcean positions itself as an "Agentic Inference Cloud" and is shipping AI-specific capabilities (Agent Development Kit public preview, Remote MCP support, inference infrastructure GA such as GPU observability and managed NFS). AI traction is driving commercial results: $120M AI customer ARR (150% YoY) and >70% of AI customer ARR tied to inference and core cloud products. Management raised 2026/2027 growth outlook and provided Q1 2026 and FY2026 revenue and EPS guidance. Key financials for Q4 2025: revenue $242.39M (+18% YoY), gross margin 59%, operating income $38.80M, net income $25.66M, adjusted free cash flow $26.90M. Overall tone is bullish with high innovation signals and demonstrable AI monetization.