Datadog (DDOG)
Information Technology · $89.4B market cap · SEC CIK 0001561550
fundamentals score out of 100
Next reports on Nov 2, 2026, before the open, with analysts expecting $0.66 in earnings per share.
The case for DDOG
- Revenue up 31.5% on the year.
- Generated $1.0B of free cash flow in FY2025, 29% of revenue.
- Earnings per share up 40.1%.
- Has compounded revenue at 41.5% a year over five years.
- Barely leveraged. Debt is 0.23× equity.
- Gross margin of 80% absorbs cost shocks.
The case against
- Very expensive at 503.5× earnings. Years of growth are already in the price.
- Priced at 22.5× sales, which leaves no room for a stumble.
- Return on equity of only 5%.
- Priced at 21× book value. Very little hard asset backing here.
- Growth is slowing: revenue up 31.5% this year against 41.5% a year over five.
- Swings harder than the market (beta 1.52).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 10 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 88 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 31 |
| Momentumhow the price has behaved lately | 80 |
| Stabilityhow violently it moves, what it owes and what it pays you | 48 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 503.5× |
|---|---|
| Price / book | 21.22× |
| Price / sales | 22.5× |
| Revenue growth (YoY) | +31.5% |
| EPS growth (YoY) | +40.1% |
| Gross margin | 80% |
| Operating margin | 0% |
| Net margin | 4% |
| Return on equity | 5% |
| Debt / equity | 0.23× |
| Current ratio | 3.20 |
| Dividend yield | none |
| Beta | 1.52 |
| 52-week range | $98.01 – $292.72 |
| Position in that range | 77% of the way up |
| 3-month return | +9.9% |
| 1-year return | +76.5% |
Five years of financials, as filed
Pulled from Datadog's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $3.4B | $2.7B | $2.1B | $1.7B | $1.0B |
| Gross profit | $2.7B | $2.2B | $1.7B | $1.3B | $795M |
| Operating income | -$44.4M | $54.3M | -$33.5M | -$58.7M | -$19.2M |
| Net income | $108M | $184M | $48.6M | -$50.2M | -$20.8M |
| Operating cash flow | $1.1B | $871M | $660M | $418M | $287M |
| Capital expenditure | $49.6M | $34.7M | $27.6M | $35.3M | $10.0M |
| Total assets | $6.6B | $5.8B | $3.9B | $3.0B | $2.4B |
| Total liabilities | $2.9B | $3.1B | $1.9B | $1.6B | $1.3B |
| Shareholder equity | $3.7B | $2.7B | $2.0B | $1.4B | $1.0B |
| Cash | $401M | $1.2B | $330M | $339M | $271M |
| Free cash flow | $1.0B | $836M | $632M | $383M | $277M |
| Gross margin | 80.0% | 80.8% | 80.7% | 79.3% | 77.2% |
| Operating margin | -1.3% | 2.0% | -1.6% | -3.5% | -1.9% |
| Net margin | 3.1% | 6.8% | 2.3% | -3.0% | -2.0% |
| Diluted shares | 363M | 359M | 350M | 315M | 309M |
Share count is up 17.6% over 4 years. Your slice has been diluted.
What Datadog says it does
in this Annual Report on Form 10-K. We may not successfully accomplish any of these objectives, and as a result, it is difficult for us to forecast our future results of operations. If the assumptions that we use to plan our business are incorrect or change in reaction to changes in our market, or if we are unable to maintain consistent revenue or revenue growth, our stock price could be volatile, and it may be difficult to achieve and maintain profitability. You should not rely on our revenue for any prior quarterly or annual periods as any indication of our future revenue or revenue growth. In addition, we expect to continue to expend substantial financial and other resources on: 14 • our technology infrastructure, including systems architecture, scalability, availability, performance and security; • our sales and marketing organization to engage our existing and prospective customers, increase brand awareness and drive…
Risk factors DDOG lists in its 10-K
- Expanding Within Our Existing Customer Base
- Sustaining Innovation and Technology Leadership
- Components of Results of Operations
- Comparison of the Years Ended December 31, 2025 and 2024
- Basis of Presentation and Summary of Significant Accounting Policies
- Internal-Use Software Development Costs
- Recently Adopted Accounting Pronouncements
- Opinion on the Financial Statements
- Internal Control — Integrated Framework (2013)
- Revenue Recognition — Identification of Performance Obligations – Refer to Note 2 of the Financial Statements
- How the Critical Audit Matter Was Addressed in the Audit
- Revenue from Contracts with Customers
- (in thousands, except share and per share data)
- (in thousands, except per share data)