Form 4: Datadog CTO Sells $6.2M in Shares Under 10b5-1 Plan

Datadog's Chief Technology Officer, Alexis Le-Quoc, sold 41,468 shares of Class A Common Stock on October 1, 2025, under a pre-arranged 10b5-1 trading plan after exercising stock options.

Summary

• Alexis Le-Quoc, Datadog's Director and Chief Technology Officer, reported transactions on October 1, 2025.
• Exercised 54,000 stock options at an exercise price of $0.9092 per share, which were fully vested.
• Exercised 18,750 stock options at an exercise price of $10.74 per share, which were fully vested.
• Converted a total of 41,468 Class B Common Stock shares into an equal number of Class A Common Stock shares.
• Sold a total of 41,468 Class A Common Stock shares through multiple transactions at weighted-average prices ranging from $144.5233 to $154.0913.
• The sales were executed pursuant to a Rule 10b5-1 trading plan established on September 5, 2023.
• Following these transactions, direct beneficial ownership of Class A Common Stock decreased to 438,885 shares, and direct beneficial ownership of Class B Common Stock decreased to 2,688,860 shares.
• An additional 169 Class A Common Stock shares and 6,326,835 Class B Common Stock shares are held indirectly by the Alexis Le-Quoc Revocable Trust.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While insider selling can sometimes be viewed negatively, the transactions were executed under a pre-arranged 10b5-1 plan, which is a common practice for executive compensation and personal financial management, mitigating concerns about opportunistic selling. The exercise of options also indicates the realization of value.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned liquidation for diversification or liquidity rather than opportunistic selling based on new, non-public information.
• The exercise of stock options demonstrates the insider realizing value from their compensation, which can be a positive signal of the company's stock performance over time.

Negatives

• Significant insider selling, even if planned, can sometimes be perceived negatively by the market, potentially signaling a lack of confidence, although this is mitigated by the 10b5-1 plan.

Risks

• Market perception of insider selling could lead to short-term negative sentiment towards Datadog's stock, despite the pre-arranged nature of the transactions.

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding Datadog's future performance or strategic direction.

Industry Context

This filing details an individual insider transaction and does not provide information directly related to broader industry trends or competitive landscape for Datadog.

Related Party Transactions

• Shares are held indirectly by the Alexis Le-Quoc Revocable Trust, indicating a related party holding.

Stakeholder Impact

• Shareholders may observe the insider selling and interpret it in various ways, potentially influencing short-term trading sentiment.

Key Dates

Recommendation

The filing details a routine insider transaction involving the exercise of stock options and subsequent sale of shares under a pre-arranged 10b5-1 plan. This type of transaction is common for executive compensation and personal financial management and does not typically signal a change in the company's fundamental outlook or warrant a strong buy or sell recommendation based solely on this filing. Investors should consider broader company performance and market conditions.

Keywords

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