Datadog Acquires Eppo to Expand Its AI, Product Analytics, Experimentation and Feature Flag Capabilities

Rhea-AI Summary

Datadog (NASDAQ: DDOG) has acquired Eppo, a feature flagging and experimentation platform, to enhance its Product Analytics suite. The acquisition creates a comprehensive end-to-end product analytics solution that combines observability with experimentation and feature flags. This integration enables engineers to track code changes, data science leaders and product managers to design and measure impact through experiments, and business analysts to analyze product usage and outcomes.

The acquisition is particularly significant for AI workloads, as Eppo's experimentation capabilities help developers safely scale complex systems by measuring user experience impact in real time. This allows teams to compare multiple AI models, evaluate user engagement against costs, and ensure measurable value delivery. Eppo will continue operating as Eppo by Datadog, supporting existing and new customers.

Positive

• Integration creates a unified platform for product analytics, reducing the need to stitch together multiple tools
• Enhanced capabilities for measuring AI model performance and business impact
• Real-time measurement of user experience impact
• Improved risk management and quality control for product deployments

Negative

• Potential integration challenges between Datadog and Eppo platforms
• Increased complexity in managing combined feature sets

Combining observability with experimentation and feature flags will help companies build high-quality products faster and with less risk, especially when using AI

NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) --  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 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.

Forward-Looking Statements

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
press@datadoghq.com

FAQ

What is the purpose of Datadog's acquisition of Eppo?

Datadog acquired Eppo to create a unified end-to-end product analytics solution that combines observability, experimentation, and feature flags, helping companies build better products faster and measure AI workload impact more effectively.

How will the Eppo acquisition affect DDOG's AI capabilities?

The acquisition enhances Datadog's AI capabilities by enabling developers to compare multiple AI models, measure user engagement against costs, and ensure measurable value delivery through Eppo's experimentation features.

Will Eppo continue to operate independently after the DDOG acquisition?

Yes, Eppo will continue supporting existing customers and accepting new ones as 'Eppo by Datadog'.

What are the main benefits of the Datadog-Eppo integration for developers?

Developers can track code changes with feature flags, design and measure impact through experiments, and analyze product usage and business outcomes all on a single platform, reducing the need for multiple tools.

How does the Eppo acquisition help companies manage AI workloads?

Eppo's experimentation capabilities help companies safely scale complex AI systems by measuring real-time user experience impact and enabling side-by-side comparison of multiple models.