Stock Analysis on Net

Datadog Inc. (NASDAQ:DDOG)

$24.99

Common-Size Income Statement
Quarterly Data

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Datadog Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Revenue
Cost of revenue
Gross profit
Research and development
Sales and marketing
General and administrative
Operating expenses
Operating income (loss)
Interest expense
Interest income and other income, net
Other income, net
Income (loss) before (provision for) benefit from income taxes
(Provision for) benefit from income taxes
Net income (loss)

Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).


The common-size income statement reveals significant fluctuations in profitability and expense management over the observed period. Revenue is consistently represented as 100% by definition. A notable trend is the decreasing cost of revenue as a percentage of revenue, improving from 24.45% in June 2021 to 19.61% in December 2025. This suggests increasing efficiency in production or procurement. Consequently, gross profit as a percentage of revenue demonstrates a corresponding increase, moving from 75.55% to 80.39% over the same timeframe.

However, operating expenses exhibit a more complex pattern. While initially relatively stable, research and development expenses increased substantially, peaking at 47.05% in September 2022 before declining to 43.84% in December 2023 and then increasing again to 46.87% in June 2025. Sales and marketing expenses also show variability, with a general downward trend from 32.41% to 27.74% before increasing to 28.91% in June 2025. General and administrative expenses remained relatively consistent, fluctuating between approximately 7.27% and 9.38%.

Operating Income (Loss)
Operating income demonstrates a volatile trajectory. Initially negative, it turned positive in December 2021, peaking at 9.71% in September 2023, before declining to 0.98% in December 2023 and then increasing to 5.61% in December 2025. This suggests periods of successful operational performance interspersed with challenges.
Interest Expense and Income
Interest expense consistently decreased as a percentage of revenue, from 2.76% to 0.27% over the period. Interest income and other income, net, showed an increasing trend, rising from 2.91% to 4.90% in December 2025. Other income, net, also increased, from 0.15% to 4.63% over the same period. These trends indicate improved financial leverage and potentially successful investment activities.
Net Income (Loss)
Net income mirrored the trends observed in operating income, initially negative and becoming positive in December 2021. It peaked at 9.16% in September 2023, then decreased to 0.32% in June 2025, and finally increased to 4.89% in December 2025. The fluctuations in net income are influenced by the combined effects of operating performance, interest expenses, and income tax provisions.

The provision for income taxes as a percentage of revenue varied, impacting net income. Overall, the company experienced a period of improving gross profitability, offset by increasing research and development expenses, and fluctuating sales and marketing costs. The net effect resulted in a volatile operating income, which ultimately influenced net income performance.