Stock Analysis on Net
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: Jun 30, 2026 Mar 31, 2026 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-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 financial trajectory reveals a transition from consistent net losses in early 2021 toward a period of fluctuating but more frequent profitability by 2024 and 2025. Net income margins improved from a low of -6.58% in March 2021 to a peak of 9.16% in December 2023, although the results remained volatile throughout the observed period.

Gross Profitability and Cost Management
Gross profit margins remained consistently high, generally oscillating between 76% and 82%. The cost of revenue experienced a general downward trend, decreasing from 23.50% in March 2021 to a low of 17.78% in December 2023, which indicates an improvement in the efficiency of direct service delivery before a slight resurgence in costs through 2025.
Operating Expenditure Trends
Research and development (R&D) represents the largest operational investment, consistently consuming between 39% and 47% of total revenue. Sales and marketing (S&M) expenses remained relatively stable, typically fluctuating between 27% and 32%. General and administrative (G&A) expenses exhibited a gradual decline from 10.62% in March 2021 to a range of 7% to 8% in subsequent years, suggesting a moderate improvement in administrative overhead efficiency.
Operating Income Volatility
Operating income has demonstrated significant instability, alternating between operational losses and modest gains. A notable period of operational contraction occurred in late 2022 and early 2023, with operating margins reaching lows of -7.38%. This was followed by a recovery period peaking at 4.70% in December 2023, though the margin returned to negative territory in early 2025.
Impact of Non-Operating Income
A significant divergence is observable between operating results and net income, driven by a substantial increase in interest income and other income. Non-operating income grew from 2.91% of revenue in March 2021 to peaks exceeding 6% in 2024. This trend has functioned as a critical buffer, often converting operating losses into net profits and substantially inflating the bottom-line margin regardless of operational performance.