Datadog Acquires Eppo to Enhance AI-Driven Product Analytics and Experimentation

Datadog acquires Eppo, a feature flagging and experimentation platform | TechCrunch

Datadog is on an acquisition spree. Just a few weeks after snatching up Metaplane, an AI-powered observability startup, the cloud monitoring and security company has acquired Eppo, a feature flagging and experimentation platform. Eppo will continue supporting existing customers and bringing on new ones under the brand "Eppo by Datadog." Terms of the deal weren't disclosed, but a report last week from Ustarts Media suggested Datadog was planning to pay $220 million. Despite the demand for tools that let developers experiment with different versions of apps, the infrastructure required for product analytics remains relatively complex to build. Beyond data pipelines and statistical methods, experimentation infrastructure relies on analytics workflows often sourced from difficult-to-configure cloud environments. In an interview two years ago, Eppo co-founder and CEO Che Sharma told TechCrunch that Eppo was inspired by his experiences building experimentation platforms as a data scientist at Airbnb and Webflow, a website builder. Eppo offers what Sharma called "confidence intervals" to make it easier to understand and interpret the results of a randomized app experiment. The platform supports experimentation with AI and machine learning models, leveraging techniques to perform live experiments that show whether one model is outperforming another. While plenty of startups have emerged in recent years to abstract away the app experimentation infrastructure, including Split, Statsig, and Optimizely, Eppo has managed to stand out in the crowded field. The San Francisco, California-based company raised $47.5 million from VC firms including Innovation Endeavors, Menlo Ventures, and Amplify Partners prior to its exit, according to CrunchBase. Eppo had around 15 employees as of June 2022, when the startup was valued at $80 million. Back then, Eppo's customer base included Goldbelly, Netlify, and Kumu, among others. "Eppo wants to bring a high velocity, experiment-first culture to companies of every size, stage, and industry," Sharma said in a press release. "With Datadog, we are uniting product analytics, feature management, AI, and experimentation capabilities for businesses to reduce risk, learn quickly, and ship high-quality products." For Datadog, which recently reported a better-than-expected net profit but a revenue forecast that fell below what analysts expected, the Eppo buy could bolster the company's current product analytics solutions. The sector is a large and healthy one. According to Fortune Business Insights, the global market for product analytics was worth $9.09 billion last year and could reach $27.01 billion by 2032. "The use of multiple AI models increases the complexity of deploying applications in production," Michael Whetten, VP of Product at Datadog, said in a statement. "Experimentation solves this correlation and measurement problem, enabling teams to compare multiple models side-by-side, determine user engagement against cost tradeoffs, and ultimately build AI products that deliver measurable value."

Datadog Acquires Eppo to Expand Its AI, Product Analytics, Experimentation and Feature Flag Capabilities - Datadog (NASDAQ:DDOG)

NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) -- Datadog, Inc. DDOG, the monitoring and security platform for cloud applications, today announced it has acquired Eppo, a feature flagging and experimentation platform, which will tightly integrate with Datadog's existing Product Analytics suite. Today, application developers need to stitch together analytics from various tools across engineering, product and business teams to understand the impact of their new features and improvements. Changes are often rolled out without understanding their impact to KPIs, making it difficult to tie these changes back to business outcomes. With its acquisition of Eppo, Datadog creates a full end-to-end product analytics solution on one platform. This unified approach means that engineers can track code changes with feature flags, data science leaders together with product managers can design and measure impact with experiments, and business analysts can use Datadog's Product Analytics suite to understand overall product usage and business outcomes. As AI workloads grow, Eppo's experimentation capabilities help developers safely scale complex systems. These capabilities can measure the impact to the overall user experience in real time and accelerate the safe roll-out of changes, ultimately creating a more agile and trustworthy development workflow. "The use of multiple AI models increases the complexity of deploying applications in production. This complexity makes it difficult for developers to quantify the business impact of different models, agent behaviors, prompts or UI changes," said Michael Whetten, VP of Product at Datadog. "Experimentation solves this correlation and measurement problem, enabling teams to compare multiple models side-by-side, determine user engagement against cost tradeoffs and ultimately build AI products that deliver measurable value." "Eppo wants to bring a high velocity, experiment-first culture to companies of every size, stage and industry," said Chetan Sharma, founder and CEO of Eppo. "With Datadog, we are uniting product analytics, feature management, AI and experimentation capabilities for businesses to reduce risk, learn quickly and ship high-quality products." Eppo will continue supporting existing customers and bringing on new customers as part of Eppo by Datadog. About Datadog Datadog is the observability and security platform for cloud applications. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for our customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics. This press release may include certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended including statements on the benefits of new products and features. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control, including those risks detailed under the caption "Risk Factors" and elsewhere in our Securities and Exchange Commission filings and reports, including the Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 20, 2025, as well as future filings and reports by us. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise. Contact Dan Haggerty [email protected] DDOGDatadog Inc$103.79-1.15%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum29.43Growth87.55Quality-Value7.30Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Datadog Acquires Eppo To Boost Product Analytics And Simplify AI Workflows - Datadog (NASDAQ:DDOG)

Datadog Inc. DDOG announced Monday that it has acquired Eppo, a platform specializing in feature flagging and experimentation. The company will use the acquisition to enhance its Product Analytics suite and streamline the development process for its customers. Deal terms were not disclosed. The acquisition is designed to help developers, product managers, and analysts unify their tools and provide clearer insights into how new features and code changes affect business outcomes. By integrating Eppo, Datadog plans to offer a comprehensive product analytics solution, replacing the fragmented workflows many teams face. Also Read: McDonald's To Rally More Than 10%? Here Are 10 Top Analyst Forecasts For Monday This move enables Datadog to deliver a unified platform that allows teams to manage feature flags, run experiments, and monitor key metrics, ultimately simplifying product impact analysis as AI adoption continues to grow. Michael Whetten, Datadog's vice president of product, noted that as companies deploy more AI models, measuring their impact becomes increasingly complex. He explained that experimentation helps solve this challenge by enabling teams to compare models, assess user engagement, and evaluate cost tradeoffs, leading to more effective AI products. The combined tools aim to make development workflows faster and more reliable. Eppo will continue to support its current customer base while expanding under the Eppo by Datadog brand. The acquisition further positions Datadog to address the increasing complexity of today's software and AI landscapes. Datadog held cash and equivalents of $4.2 billion as of December 31, 2024. Datadog Stock Prediction For 2025 Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock. Shares of Datadog have an average 1-year price target of $146.9, representing an expected upside of 38.98%. Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Datadog, while 17 analysts have bullish ratings. The street high price target from Macquarie is $200.0, while the street low from Morgan Stanley is $115.0. Price Action: DDOG shares closed higher by 0.67% to $105.70 on Monday. Photo via Shutterstock DDOGDatadog Inc$106.000.95%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum29.43Growth87.55Quality-Value7.30Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Datadog Acquires Eppo To Expand Its AI, Product Analytics, Experimentation And F...

Datadog, Inc. (NASDAQ: DDOG), the monitoring and security platform for cloud applications, today announced it has acquired Eppo, a feature flagging and experimentation platform, which will tightly integrate with Datadog's existing Product Analytics suite. Today, application developers need to stitch together analytics from various tools across engineering, product and business teams to understand the impact of their new features and improvements. Changes are often rolled out without understanding their impact to KPIs, making it difficult to tie these changes back to business outcomes. With its acquisition of Eppo, Datadog creates a full end-to-end product analytics solution on one platform. This unified approach means that engineers can track code changes with feature flags, data science leaders together with product managers can design and measure impact with experiments, and business analysts can use Datadog's Product Analytics suite to understand overall product usage and business outcomes. As AI workloads grow, Eppo's experimentation capabilities help developers safely scale complex systems. These capabilities can measure the impact to the overall user experience in real time and accelerate the safe roll-out of changes, ultimately creating a more agile and trustworthy development workflow. "The use of multiple AI models increases the complexity of deploying applications in production. This complexity makes it difficult for developers to quantify the business impact of different models, agent behaviours, prompts or UI changes," said Michael Whetten, VP of Product at Datadog. "Experimentation solves this correlation and measurement problem, enabling teams to compare multiple models side-by-side, determine user engagement against cost trade-offs and ultimately build AI products that deliver measurable value." "Eppo wants to bring a high velocity, experiment-first culture to companies of every size, stage and industry," said Chetan Sharma, founder and CEO of Eppo. "With Datadog, we are uniting product analytics, feature management, AI and experimentation capabilities for businesses to reduce risk, learn quickly and ship high-quality products." Eppo will continue supporting existing customers and bringing on new customers as part of Eppo by Datadog.