Datadog Acquires Eppo to Boost Feature Flagging & Testing
▼ Summary
– Datadog acquired Eppo, a feature flagging and experimentation platform, following its recent purchase of Metaplane, though the deal terms were undisclosed.
– Eppo will continue operating under the name “Eppo by Datadog,” supporting existing and new customers while integrating into Datadog’s product analytics solutions.
– Eppo’s platform simplifies app experimentation with features like “confidence intervals” and supports AI/ML model testing to compare performance in live environments.
– Prior to acquisition, Eppo raised $47.5 million in funding and was valued at $80 million in 2022, serving clients like Goldbelly and Netlify.
– Datadog’s acquisition aims to enhance its product analytics offerings in a growing market, projected to reach $27.01 billion by 2032, by addressing AI deployment complexity.
Datadog has expanded its capabilities in feature flagging and product experimentation through the acquisition of Eppo, a specialized platform that helps development teams test different versions of applications safely. This move follows Datadog’s recent purchase of Metaplane, signaling a strategic push to enhance its observability and analytics offerings.
While financial specifics remain undisclosed, industry reports suggest the deal could be worth approximately $220 million. Eppo will continue operating under its own brand while integrating with Datadog’s ecosystem, ensuring continuity for existing clients.
Feature flagging and experimentation tools have become essential for modern software teams, yet building the necessary infrastructure remains challenging. Eppo simplifies this process by providing statistical confidence intervals and AI-powered testing, allowing businesses to compare model performance in real-world scenarios. The platform’s approach stems from co-founder Che Sharma’s background at Airbnb and Webflow, where he encountered firsthand the difficulties of managing large-scale experiments.
Competitors like Split, Statsig, and Optimizely operate in the same space, but Eppo has carved out a niche with its focus on data-driven decision-making. Before the acquisition, the San Francisco-based startup had raised $47.5 million from investors including Menlo Ventures and Amplify Partners, reaching an $80 million valuation in mid-2022. Clients such as Goldbelly and Netlify relied on its technology to refine their digital products.
Sharma emphasized that joining Datadog will accelerate Eppo’s mission to democratize experimentation across industries. “We’re combining product analytics, feature management, and AI to help businesses innovate faster while minimizing risk,” he noted in a statement.
For Datadog, the acquisition strengthens its position in the booming product analytics market, projected to grow from $9.09 billion to over $27 billion by 2032. Michael Whetten, Datadog’s VP of Product, highlighted how Eppo’s technology addresses a critical pain point: “With AI models becoming more complex, teams need reliable ways to measure performance and optimize costs—experimentation is the key.”
The deal arrives as Datadog navigates mixed financial performance, with strong profitability but softer-than-expected revenue forecasts. Adding Eppo’s capabilities could help the company attract more enterprises looking to streamline their development workflows.
(Source: TechCrunch)
