Form 4: Datadog's Chief Technology Officer, Alexis Le-Quoc, Reports Acquisition of 80,252 Shares of Class A Common Stock

Datadog's CTO, Alexis Le-Quoc, reports acquiring 80,252 shares of Class A Common Stock following the vesting of performance-based restricted stock units (PSUs).

Summary

• On February 27, 2024, Alexis Le-Quoc, the Chief Technology Officer of Datadog, Inc., reported the acquisition of 80,252 shares of Class A Common Stock.
• These shares were acquired as a result of the achievement of performance-based criteria related to restricted stock units (PSUs) granted on April 25, 2023.
• The earned PSUs will vest based on a service-based schedule, with 1/4 vesting on March 1, 2024, and the remaining shares vesting in installments on June 1, September 1, December 1, and March 1 thereafter, contingent upon continuous service.
• Following the transaction, Le-Quoc directly owns 327,580 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The vesting of PSUs suggests that performance goals were met, which is a positive indicator. The continued service requirement aligns the executive's interests with the company's long-term success.

Positives

• The vesting of PSUs indicates that performance goals were met, which could be seen as a positive signal about the company's performance.
• The continued service requirement for vesting aligns the executive's interests with the long-term success of the company.

Future Outlook

The earned PSUs will continue to vest based on a service-based schedule, contingent upon the Reporting Person's continuous service.

Industry Context

Executive stock ownership is common in the tech industry to align management's interests with shareholders. Vesting schedules tied to performance and service are also standard practice.

Comparison to Industry Standards

• Datadog's equity compensation practices are similar to those of other high-growth tech companies like Snowflake, CrowdStrike, and Okta, which also use a combination of time-based and performance-based vesting for their executive equity grants.
• The vesting schedule of 1/4 initially and then 1/12 quarterly is a fairly standard vesting schedule for RSUs.
• The size of the grant is within the typical range for CTO-level executives at companies of Datadog's size and stage.

Stakeholder Impact

• The vesting of PSUs could have a minor positive impact on shareholder sentiment, as it indicates that performance goals were achieved.
• The continued service requirement aligns the executive's interests with the long-term success of the company, which benefits shareholders.

Next Steps

• Continued monitoring of the Reporting Person's holdings and transactions in Datadog stock.
• Tracking of future vesting dates for the remaining PSUs.

Key Dates