Form 4: Datadog CTO Alexis Le-Quoc Executes Significant Stock Sales Under Pre-Arranged 10b5-1 Plan

Datadog's Chief Technology Officer and Director, Alexis Le-Quoc, reported the sale of 127,105 shares of Class A Common Stock for approximately $15.2 million, following the conversion of an equivalent number of Class B shares, all executed under a pre-established 10b5-1 trading plan.

Summary

• Alexis Le-Quoc, Datadog's Chief Technology Officer and Director, reported transactions on June 4, 2025, involving the company's Class A Common Stock.
• Mr. Le-Quoc acquired a total of 127,105 shares of Class A Common Stock through the conversion of Class B Common Stock, with exercise prices ranging from $0.3067 to $10.74 per share.
• Concurrently, he disposed of 127,105 shares of Class A Common Stock through sales on the open market.
• The sales were executed at weighted-average prices ranging from $119.7895 to $121.1667 per share, totaling approximately $15.2 million.
• These transactions were conducted pursuant to a Rule 10b5-1 trading plan that was established on September 5, 2023.
• Following these transactions, Mr. Le-Quoc directly holds 452,769 shares of Class A Common Stock and 2,563,732 shares of Class B Common Stock.
• Additionally, 169 shares of Class A Common Stock and 6,663,835 shares of Class B Common Stock are held indirectly by the Alexis Le-Quoc Revocable Trust.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While significant insider selling can sometimes be viewed negatively, the fact that it was executed under a pre-arranged 10b5-1 plan mitigates concerns about opportunistic trading. The conversions also indicate the exercise of options, which is a normal part of executive compensation.

Positives

• The exercise of stock options and conversion of Class B to Class A stock indicates the insider is realizing value from their equity compensation.
• The sales were conducted at relatively high prices, ranging from $119.7895 to $121.1667, indicating a favorable market for the disposition of shares.
• The transactions were executed under a Rule 10b5-1 plan, which suggests the sales were pre-scheduled and not based on immediate, non-public information, mitigating concerns about opportunistic insider selling.

Negatives

• The significant sale of 127,105 shares by a key executive like the CTO could be perceived by some investors as a signal of reduced confidence, despite being part of a pre-arranged plan.
• While the sales are under a 10b5-1 plan, the sheer volume of shares sold represents a substantial liquidation of direct holdings.

Risks

• No specific risks to the company's operations or financial health are mentioned in this Form 4 filing, as it primarily reports insider stock transactions.

Future Outlook

This Form 4 filing does not provide any forward-looking statements or guidance regarding Datadog's business operations or financial performance. It solely reports past insider trading activities.

Management Comments

• The sales were made pursuant to a 10b5-1 plan dated September 5, 2023.
• The Reporting Person will provide upon request to the SEC, the Issuer or security holder of the Issuer, full information regarding the number of shares sold at each separate price.

Industry Context

This filing is specific to an individual insider's stock transactions and does not provide broader industry context or trends. It reflects personal financial planning and diversification rather than a statement on the software or cloud monitoring industry.

Stakeholder Impact

• Shareholders: May observe the significant insider sale, which could lead to varied interpretations regarding management's confidence, though the 10b5-1 plan context is important.
• Employees: No direct impact mentioned, but general market perception of insider activity can indirectly affect morale or perception of company stability.

Key Dates

Keywords

Datadog, DDOG, Form 4, Insider Trading, Stock Sale, CTO, Alexis Le-Quoc, 10b5-1 Plan, Equity Compensation, Class A Common Stock, Class B Common Stock