Stock Analysis on Net

Datadog Inc. (NASDAQ:DDOG)

Income Statement 
Quarterly Data

Datadog Inc., consolidated income statement (quarterly data)

US$ in thousands

Microsoft Excel
3 months ended: 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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue 826,760 761,553 737,727 690,016 645,279 611,253 589,649 547,536 509,460 481,714 469,399 436,533 406,138 363,030 326,198 270,488 233,549 198,549 177,531 154,675 140,012 131,248
Cost of revenue (165,978) (157,628) (144,178) (137,756) (123,499) (110,098) (104,829) (103,319) (101,846) (99,914) (96,757) (93,599) (81,925) (74,462) (67,149) (63,332) (57,098) (46,666) (40,856) (33,984) (28,878) (26,479)
Gross profit 660,782 603,925 593,549 552,260 521,780 501,155 484,820 444,217 407,614 381,800 372,642 342,934 324,213 288,568 259,049 207,156 176,451 151,883 136,675 120,691 111,134 104,769
Research and development (387,482) (341,061) (316,314) (291,802) (274,599) (269,988) (253,250) (240,225) (239,494) (229,478) (218,656) (205,388) (177,699) (150,608) (133,049) (112,675) (94,779) (79,266) (67,698) (56,440) (45,664) (40,824)
Sales and marketing (239,026) (214,291) (207,947) (187,772) (187,005) (173,881) (159,980) (156,870) (147,455) (144,971) (149,359) (129,493) (115,270) (101,166) (88,905) (75,827) (70,412) (64,353) (60,034) (57,142) (51,269) (45,215)
General and administrative (69,774) (60,993) (59,896) (52,408) (47,558) (45,290) (43,848) (51,352) (42,671) (42,321) (39,255) (39,395) (34,383) (26,380) (28,640) (23,549) (21,146) (21,094) (17,881) (16,376) (13,547) (14,952)
Operating expenses (696,282) (616,345) (584,157) (531,982) (509,162) (489,159) (457,078) (448,447) (429,620) (416,770) (407,270) (374,276) (327,352) (278,154) (250,594) (212,051) (186,337) (164,713) (145,613) (129,958) (110,480) (100,991)
Operating income (loss) (35,500) (12,420) 9,392 20,278 12,618 11,996 27,742 (4,230) (22,006) (34,970) (34,628) (31,342) (3,139) 10,414 8,455 (4,895) (9,886) (12,830) (8,938) (9,267) 654 3,778
Interest expense (3,075) (2,963) (2,643) (1,574) (1,477) (1,374) (1,292) (1,303) (1,526) (2,181) (3,019) (3,728) (4,541) (5,247) (5,604) (4,912) (5,064) (5,472) (13,010) (12,423) (4,294) (707)
Interest income and other income, net 44,663 47,179 47,077 37,432 36,652 35,563 30,817 29,833 22,624 16,727 11,793 12,011 7,669 5,687 5,681 5,040 5,292 5,773 6,781 7,135 4,466 3,603
Other income (loss), net 41,588 44,216 44,434 35,858 35,175 34,189 29,525 28,530 21,098 14,546 8,774 8,283 3,128 440 77 128 228 301 (6,229) (5,288) 172 2,896
Income (loss) before (provision for) benefit from income taxes 6,088 31,796 53,826 56,136 47,793 46,185 57,267 24,300 (908) (20,424) (25,854) (23,059) (11) 10,854 8,532 (4,767) (9,658) (12,529) (15,167) (14,555) 826 6,674
(Provision for) benefit from income taxes (3,441) (7,154) (8,232) (4,439) (3,969) (3,554) (3,274) (1,670) (3,061) (3,662) (3,180) (2,926) (4,868) (1,116) (1,363) (717) 296 (539) (993) (595) (542) (195)
Net income (loss) 2,647 24,642 45,594 51,697 43,824 42,631 53,993 22,630 (3,969) (24,086) (29,034) (25,985) (4,879) 9,738 7,169 (5,484) (9,362) (13,068) (16,160) (15,150) 284 6,479

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).


Revenue
Revenue shows a steady and significant upward trend over the observed periods. Starting from 131,248 thousand USD in March 2020, it increased consistently quarter over quarter, reaching 826,760 thousand USD by June 2025. This reflects strong top-line growth and expanding business operations.
Cost of Revenue
The cost of revenue follows a parallel increasing trend, rising from 26,479 thousand USD in March 2020 to 165,978 thousand USD by June 2025. Although absolute costs rise, the growth rate is somewhat in line with revenue, suggesting maintained gross margin levels despite the increasing scale.
Gross Profit
Gross profit demonstrates a continuous increase, from 104,769 thousand USD at the start of the dataset to 660,782 thousand USD in mid-2025. This upward trajectory reflects improving efficiency and a growing business scale, with gross profit margins likely stable or improving since gross profit grows faster than revenue.
Operating Expenses
Operating expenses exhibit a significant upward trend, increasing from 100,991 thousand USD in the first quarter of 2020 to 696,282 thousand USD by June 2025. The major components—research and development, sales and marketing, and general and administrative expenses—each rise substantially over time. R&D expenses increase notably, indicating ongoing investment in innovation and product development. Sales and marketing expenses also escalate, supporting revenue growth through expanded market reach. General and administrative costs increase more moderately but steadily.
Operating Income (Loss)
Operating income fluctuates across the periods. After a positive start in early 2020, operating income turns negative for several quarters in late 2020 and 2021, showing challenges in managing costs relative to revenue growth. However, from late 2021 onward, operating income improves with some volatility, registering positive values again and indicating a partial return to operating profitability. Notably, operating income peaks at 27,742 thousand USD in December 2023 but declines sharply again towards mid-2025, showing variability in profitability.
Interest Expense and Income
Interest expense remains relatively modest throughout, with a slight decreasing trend from early highs in 2020 and 2021 to lower levels by 2025. Interest income and other income show an increasing trend, rising significantly from 3,603 thousand USD in early 2020 to peaks above 47,000 thousand USD in some quarters, suggesting improved financial income or investment returns.
Other Income (Loss), Net
Other income (loss) exhibits volatility but generally trends upwards. It fluctuates with periods of minor losses and gains early on but achieves notable positive values from late 2021 onward, peaking around 44,000 thousand USD in early 2025. This indicates increasing non-operating income contributions to overall profitability.
Income Before Income Taxes
Income before taxes is volatile, showing losses in many quarters especially between late 2020 and 2022, reflecting challenges in overall profitability during these periods. It recovers substantially after 2022, with significant positive income reported in several quarters, peaking at 57,267 thousand USD in December 2023. However, results fluctuate, with some decline observed toward mid-2025.
Provision for Income Taxes
The provision for income taxes varies quarter to quarter with no clear long-term trend. It includes both provisions and benefits, with notable increases in tax provisions during quarters with higher pre-tax income. The fluctuations suggest differing tax impacts related to income variability.
Net Income (Loss)
Net income demonstrates substantial volatility, with losses reported in many quarters, especially from mid-2020 through 2022, reflecting challenges in achieving consistent profitability. From late 2022 onwards, net income generally improves, reaching significant positive values, such as 53,993 thousand USD in December 2023. After that peak, net income declines again but remains positive in several subsequent quarters, indicating efforts to restore profitability despite ongoing cost pressures.