Common-Size Income Statement
Quarterly Data
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- Income Statement
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2019
- Price to Book Value (P/BV) since 2019
- Price to Sales (P/S) since 2019
- Analysis of Debt
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Datadog Inc., common-size consolidated income statement (quarterly data)
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Gross Profit and Cost of Revenue Trends
- The gross profit margin has generally maintained a stable level in the range of approximately 75% to 82% of revenue over the periods analyzed. After a dip around late 2020 to mid-2021, it improved notably by the end of 2023, reaching above 81%, though slightly decreasing again into 2024. The cost of revenue as a percentage of revenue fluctuated around 20% to 24%, initially increasing through 2020 and early 2021 before trending downward through late 2023 and stabilizing near 20% in 2024. This indicates some improvement in cost control related to revenue generation after initial expansion or cost pressures.
- Research and Development Expenses
- Research and development expenditures as a percentage of revenue have shown a rising trend overall, increasing from approximately 31% in early 2020 to peak near 47% in late 2022 and maintaining elevated levels above 42% through 2024. This suggests continued strong investment in innovation and product development, with a persistence of relatively high R&D intensity relative to revenue.
- Sales and Marketing Expenses
- Sales and marketing costs have exhibited moderate fluctuation, initially decreasing from above 36% in early 2020 to a low near 27% in late 2021, indicating efficiency gains or strategic cost management. However, slight increases occurred subsequently, stabilizing around 28% to 29% in mid to late 2024. The relative steadiness suggests a balanced approach to sales and marketing spending in relation to revenue.
- General and Administrative Expenses
- General and administrative expenses declined from about 11% at the start of 2020 to a range between 7% and 9% in subsequent periods, with minor fluctuations. The trend points to improved administrative cost efficiency or optimized overhead relative to revenue during the timeframe.
- Operating Expenses and Operating Income
- Total operating expenses as a percentage of revenue initially increased, peaking at around 87% in late 2022, before declining to approximately 77%-80% in 2024. Correspondingly, operating income (loss) showed volatility, from modest positive percentages early on to sharp negative dips in 2020 and again in 2022, then progressively recovering to small positive margins by late 2023 and maintaining low but positive operating income through 2024. The improvement signals better operational leverage and cost management in more recent periods.
- Interest and Other Income
- Interest expense as a percentage of revenue decreased steadily from relatively high negative impacts above 3% in early periods to below 0.4% after 2022, consistent with reduced borrowing costs or debt levels. Interest income and other income items have shown rising trends, from approximately 2.7% in early 2020 to peaks above 6% by late 2024, contributing positively to pre-tax income.
- Income Before Taxes and Net Income
- Income before taxes followed a pattern of initial losses around 8-9% of revenue during 2020 and early 2022, with substantial improvement from 2023 onward, peaking around 9.7% in mid-2024. Net income closely mirrors this with negative margins through much of 2020 to 2022, then turning positive and reaching around 9.2% in late 2023, with some decline but remaining positive in 2024. Tax provisions as a percentage of revenue have remained relatively low and stable, negatively impacting net income marginally.
- Overall Financial Performance Insights
- The data documents a company experiencing initial cost pressures and operating losses in early years, particularly in 2020 and 2022, likely due to high R&D investments and market conditions. Over time, improving cost controls in cost of revenue and operating expenses, alongside reduced interest burdens and enhanced other income, have contributed to recovery of operating margins and net profitability from 2023 onward. Continued high R&D spend indicates sustained investment in growth, balanced by controlled sales, marketing, and administrative expenses. The company appears to be achieving gradual operational improvements and bottom-line profitability improvements in recent quarters.