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DDOG

Datadog, Inc.

DDOG

Datadog, Inc. • NASDAQ
$160.01 ▲ 1.02% (+1.61)
Market Cap $56.11 B
52w High $201.69
52w Low $81.63
Dividend Yield 0%
P/E 533.37
Volume 2.20M
Outstanding Shares 350.67M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $885.651M ▲ $715.003M ▲ $33.885M ▲ 3.826% ▲ $0.1 ▲ $83.489M ▲
Q2-2025 $826.76M ▲ $696.094M ▲ $2.647M ▼ 0.32% ▼ $0.008 ▼ $37.962M ▼
Q1-2025 $761.553M ▲ $616.142M ▲ $24.642M ▼ 3.236% ▼ $0.072 ▼ $60.867M ▼
Q4-2024 $737.727M ▲ $583.95M ▲ $45.594M ▼ 6.18% ▼ $0.13 ▼ $86.454M ▲
Q3-2024 $690.016M $531.774M $51.697M 7.492% $0.15 $71.51M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $4.14B ▲ $6.052B ▲ $2.613B ▼ $3.439B ▲
Q2-2025 $3.911B ▼ $5.822B ▼ $2.627B ▼ $3.196B ▲
Q1-2025 $4.45B ▲ $6.01B ▲ $3.094B ▲ $2.917B ▲
Q4-2024 $4.189B ▲ $5.785B ▲ $3.071B ▲ $2.714B ▲
Q3-2024 $3.199B $4.631B $2.002B $2.629B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $33.885M ▲ $251.47M ▲ $-202.151M ▼ $1.271M ▲ $51.572M ▲ $234.684M ▲
Q2-2025 $2.647M ▼ $200.055M ▼ $-191.067M ▲ $-605.454M ▼ $-590.824M ▼ $203.305M ▼
Q1-2025 $24.642M ▼ $271.541M ▲ $-443.408M ▼ $1.653M ▼ $-167.129M ▼ $244.391M ▼
Q4-2024 $45.594M ▼ $265.228M ▲ $-109.364M ▲ $759.424M ▲ $909.565M ▲ $257.467M ▲
Q3-2024 $51.697M $228.681M $-306.557M $1.233M $-73.545M $247.89M

Five-Year Company Overview

Income Statement

Income Statement Datadog’s revenue has climbed sharply over the past five years, growing several-fold as more customers adopt its platform and existing customers expand usage. Gross profit has grown in line with revenue and remains a very high share of sales, which is typical of strong software businesses and suggests healthy pricing power and efficient delivery. The company has steadily moved from small operating losses to a modest operating profit, showing improving cost discipline as it scales. Net income has shifted from red to clearly positive, and earnings per share have followed the same path. Overall, this is a classic pattern of a high-growth software company maturing: strong top-line growth first, followed by improving profitability as the business gains scale.

Balance Sheet

Balance Sheet The balance sheet has expanded meaningfully, with total assets rising several times over the period as the company grew. Cash and liquid resources have increased significantly in the most recent year, giving Datadog a solid financial cushion to invest and to navigate volatility. Debt has also risen, likely reflecting the use of convertible notes or other financing tools common in high-growth tech. However, shareholders’ equity has grown consistently, meaning the company is building its net worth over time. There is no obvious sign of balance sheet stress; instead, it looks like a growth company that has used outside capital but is steadily growing into a stronger financial position.

Cash Flow

Cash Flow Datadog’s cash generation has improved year after year. Operating cash flow has grown from modest levels to a very solid stream, reflecting both strong revenue growth and improving underlying economics. Free cash flow has also increased steadily and now represents a meaningful portion of revenue, which is a key strength. Capital spending has remained relatively small compared with the cash coming in, indicating the business does not require heavy physical investment to grow. In simple terms, Datadog has transitioned from a growth story funded mainly by capital markets to one that is increasingly self-funded by its own cash flows.

Competitive Edge

Competitive Edge Datadog sits at the center of the observability and cloud monitoring space, with a unified platform that combines metrics, logs, traces, and security signals. This “single pane of glass” is a key differentiator because it allows engineering, operations, and security teams to work off the same data and tools rather than juggling multiple point solutions. The platform is known for being relatively easy to deploy, highly scalable, and deeply integrated with major cloud providers and modern software tools. That ease of adoption supports a product-led growth model where engineers bring the tool into organizations from the bottom up, creating strong user loyalty and making it harder for competitors to displace. At the same time, Datadog operates in a crowded, fast-moving market with strong rivals, including other observability vendors and cloud providers that offer overlapping monitoring and security tools. Competitive risks include pricing pressure, feature catch-up by peers, and the possibility that large customers consolidate spending with fewer vendors. Nonetheless, Datadog’s breadth of products, high switching costs, and pace of innovation give it a solid competitive footing today.

Innovation and R&D

Innovation and R&D Innovation is a core part of Datadog’s strategy. The company has consistently invested heavily in research and development, using its unified platform as a base to launch new modules and expand into adjacent areas. Key innovations include its AI-powered “Watchdog” and the newer AI assistant, which help surface and diagnose issues more quickly, as well as a broad suite of observability tools such as application monitoring, log management, real user monitoring, and network performance visibility. More recently, Datadog has pushed into cloud security, using the same underlying data to provide security posture management and workload protection, which could become a major growth driver if adopted widely. The roadmap points toward more automation, deeper AI use, and continued platform expansion, potentially supported by targeted acquisitions. The main risk is execution: Datadog must keep delivering new capabilities that customers actually use, without overcomplicating the product or diluting focus, while competitors are also investing aggressively in AI and security.

Summary

Datadog shows the financial profile of a successful, maturing cloud software platform: very strong revenue growth, high gross margins, improving operating and net profitability, and increasingly robust cash generation. Its balance sheet has scaled with the business, with more cash on hand and higher equity, even as it has taken on additional debt common to high-growth tech firms. Strategically, the company benefits from a unified observability and security platform that customers embed deeply into their workflows, creating meaningful switching costs. Its product-led growth, broad integration ecosystem, and rapid pace of innovation in AI and cloud security support a durable competitive position, although the market remains intense and fast-evolving. Overall, Datadog appears to be transitioning from a pure growth story into a more balanced business that combines high growth with improving profitability and strong free cash flow, while continuing to lean heavily on innovation to protect and extend its market position. The key variables to watch are its ability to sustain product-led expansion, defend against rising competition, and successfully monetize newer areas such as AI-driven automation and cloud security.

NEWS

November 19, 2025 · 9:00 AM UTC

Datadog Welcomes John Trapani as Field CTO for Financial Services

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November 11, 2025 · 4:05 PM UTC

Datadog to Present at Upcoming Investor Conferences

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November 10, 2025 · 4:05 PM UTC

Datadog Launches Storage Management to Help Teams Eliminate Unnecessary Cloud Object Storage

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November 10, 2025 · 9:00 AM UTC

Rokt Strengthens Its Board and Advisory Group with Appointment of Veteran Financial Leaders

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October 29, 2025 · 1:00 PM UTC

Datadog Named a Leader in the 2025 Gartner(R) Magic Quadrant(TM) for Digital Experience Monitoring

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