XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.22.2

Acquisitions, Intangible Assets and Goodwill | 6 Months Ended
--- | ---
Jun. 30, 2022
Acquisitions, Intangible Assets And Goodwill [Abstract] |
Acquisitions, Intangible Assets and Goodwill | Acquisitions, Intangible Assets and Goodwill 2022 Acquisitions In June 2022, the Company entered into two purchase agreements for acquisitions of businesses, both of which transactions were accounted for as business combinations in accordance with ASC 805, Business Combinations. The Company does not consider these acquisitions to be material, individually or in aggregate. The total purchase price was allocated to intangible assets in the amount of $5.6 million and goodwill in the amount of $43.9 million based on the respective estimated fair values. The resulting goodwill from both acquisitions is not deductible for income tax purposes. Pro forma results of operations from these acquisitions have not been presented because they were not material to the consolidated results of operations. 2021 Acquisitions In October and December 2021, the Company entered into two purchase agreements for the acquisitions of businesses, both of which transactions were accounted for as business combinations in accordance with ASC 805, Business Combinations. The Company does not consider these acquisitions to be material, individually or in aggregate. The total purchase price was allocated to intangible assets in the amount of $4.3 million and goodwill in the amount of $36.6 million based on the respective estimated fair values. The resulting goodwill from both acquisitions is not deductible for income tax purposes. Pro forma results of operations from these acquisitions have not been presented because they were not material to the consolidated results of operations. In April 2021, the Company entered into a Stock Purchase Agreement pursuant to which the Company acquired all of the issued and outstanding shares of a SaaS based security platform company. The consideration was approximately $219.4 million, comprising cash and Class A common stock. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations, and accordingly, the total fair value of the purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The total preliminary purchase price allocated to intangible assets and goodwill was $12.0 million and $204.3 million, respectively. The resulting goodwill is not deductible for income tax purposes. Intangible assets consisted of developed technology in the amount of $8.7 million and customer relationships in the amount of $3.3 million. The useful life for developed technology and customer relationships are three and four years, respectively. Additionally, there was a one-time severance charge of $1.3 million recorded on the acquisition date. Goodwill resulted primarily from the expectation of enhancing the Company's current application security tools. Pro forma results of operations for this acquisition have not been presented because they were not material to the condensed consolidated results of operations. In February 2021, the Company entered into a Stock Purchase Agreement pursuant to which the Company acquired all of the issued and outstanding shares of a target company with the purchase price paid in cash and Class A common stock. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations. The purchase price was allocated to intangible assets in the amount of $1.7 million and goodwill in the amount of $34.3 million based on the respective estimated fair values. Goodwill resulted primarily from the expectation of enhancing the Company's current observability tools. The resulting goodwill is not deductible for income tax purposes. Pro forma results of operations for this acquisition have not been presented because they were not material to the condensed consolidated results of operations. Intangible Assets Intangible assets, net consisted of the following (in thousands):
| June 30, 2022
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Amortization Period
Developed technology | $ | 22,746 |  |  | $ | (7,077) |  |  | $ | 15,669 |  |  | 3 years
Customer relationships | 3,300 |  |  | (1,009) |  |  | 2,291 |  |  | 4 years
Total | $ | 26,046 |  |  | $ | (8,086) |  |  | $ | 17,960 |  |  |
| December 31, 2021
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Amortization Period
Developed technology | $ | 17,186 |  |  | $ | (4,182) |  |  | $ | 13,004 |  |  | 3 years
Customer relationships | 3,300 |  |  | (600) |  |  | 2,700 |  |  | 4 years
Total | $ | 20,486 |  |  | $ | (4,782) |  |  | $ | 15,704 |  |  |
Intangible amortization expense was approximately $1.7 million and $1.1 million for the three months ended June 30, 2022 and 2021, respectively, and $3.3 million and $1.4 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, future amortization expense by year is expected to be as follows (in thousands):
| Amount
Remainder of 2022 | $ | 4,185 |
2023 | 7,839 |
2024 | 4,838 |
2025 | 1,098 |
Total | $ | 17,960 |
Goodwill The changes in the carrying amount of goodwill were as follows (in thousands):
| Amount
Balance as of December 31, 2021 | $ | 292,176 |
2022 Acquisitions | 43,926 |
Foreign currency translation adjustments | (1,415) |
Balance as of June 30, 2022 | $ | 334,687 |
Acquisitions, Intangible Assets and Goodwill | Acquisitions, Intangible Assets and Goodwill 2022 Acquisitions In June 2022, the Company entered into two purchase agreements for acquisitions of businesses, both of which transactions were accounted for as business combinations in accordance with ASC 805, Business Combinations. The Company does not consider these acquisitions to be material, individually or in aggregate. The total purchase price was allocated to intangible assets in the amount of $5.6 million and goodwill in the amount of $43.9 million based on the respective estimated fair values. The resulting goodwill from both acquisitions is not deductible for income tax purposes. Pro forma results of operations from these acquisitions have not been presented because they were not material to the consolidated results of operations. 2021 Acquisitions In October and December 2021, the Company entered into two purchase agreements for the acquisitions of businesses, both of which transactions were accounted for as business combinations in accordance with ASC 805, Business Combinations. The Company does not consider these acquisitions to be material, individually or in aggregate. The total purchase price was allocated to intangible assets in the amount of $4.3 million and goodwill in the amount of $36.6 million based on the respective estimated fair values. The resulting goodwill from both acquisitions is not deductible for income tax purposes. Pro forma results of operations from these acquisitions have not been presented because they were not material to the consolidated results of operations. In April 2021, the Company entered into a Stock Purchase Agreement pursuant to which the Company acquired all of the issued and outstanding shares of a SaaS based security platform company. The consideration was approximately $219.4 million, comprising cash and Class A common stock. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations, and accordingly, the total fair value of the purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The total preliminary purchase price allocated to intangible assets and goodwill was $12.0 million and $204.3 million, respectively. The resulting goodwill is not deductible for income tax purposes. Intangible assets consisted of developed technology in the amount of $8.7 million and customer relationships in the amount of $3.3 million. The useful life for developed technology and customer relationships are three and four years, respectively. Additionally, there was a one-time severance charge of $1.3 million recorded on the acquisition date. Goodwill resulted primarily from the expectation of enhancing the Company's current application security tools. Pro forma results of operations for this acquisition have not been presented because they were not material to the condensed consolidated results of operations. In February 2021, the Company entered into a Stock Purchase Agreement pursuant to which the Company acquired all of the issued and outstanding shares of a target company with the purchase price paid in cash and Class A common stock. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations. The purchase price was allocated to intangible assets in the amount of $1.7 million and goodwill in the amount of $34.3 million based on the respective estimated fair values. Goodwill resulted primarily from the expectation of enhancing the Company's current observability tools. The resulting goodwill is not deductible for income tax purposes. Pro forma results of operations for this acquisition have not been presented because they were not material to the condensed consolidated results of operations. Intangible Assets Intangible assets, net consisted of the following (in thousands):
| June 30, 2022
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Amortization Period
Developed technology | $ | 22,746 |  |  | $ | (7,077) |  |  | $ | 15,669 |  |  | 3 years
Customer relationships | 3,300 |  |  | (1,009) |  |  | 2,291 |  |  | 4 years
Total | $ | 26,046 |  |  | $ | (8,086) |  |  | $ | 17,960 |  |  |
| December 31, 2021
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Amortization Period
Developed technology | $ | 17,186 |  |  | $ | (4,182) |  |  | $ | 13,004 |  |  | 3 years
Customer relationships | 3,300 |  |  | (600) |  |  | 2,700 |  |  | 4 years
Total | $ | 20,486 |  |  | $ | (4,782) |  |  | $ | 15,704 |  |  |
Intangible amortization expense was approximately $1.7 million and $1.1 million for the three months ended June 30, 2022 and 2021, respectively, and $3.3 million and $1.4 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, future amortization expense by year is expected to be as follows (in thousands):
| Amount
Remainder of 2022 | $ | 4,185 |
2023 | 7,839 |
2024 | 4,838 |
2025 | 1,098 |
Total | $ | 17,960 |
Goodwill The changes in the carrying amount of goodwill were as follows (in thousands):
| Amount
Balance as of December 31, 2021 | $ | 292,176 |
2022 Acquisitions | 43,926 |
Foreign currency translation adjustments | (1,415) |
Balance as of June 30, 2022 | $ | 334,687 |

X
- Definition Acquisitions, Intangible Assets And Goodwill + References No definition available. + Details
Name: | ddog_AcquisitionsIntangibleAssetsAndGoodwillAbstract
Namespace Prefix: | ddog_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration