Income Statement
Quarterly Data
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Current Ratio since 2019
- Price to Book Value (P/BV) since 2019
- Analysis of Revenues
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Datadog Inc., consolidated income statement (quarterly data)
US$ in thousands
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 income statement reveals a period of initial losses followed by increasing profitability, with recent quarters showing signs of potential slowing growth and increased expenses. Revenue demonstrates a consistent upward trajectory throughout the observed period, although the rate of growth appears to fluctuate. Cost of revenue has also increased steadily, but at a rate that generally keeps pace with revenue growth, initially resulting in expanding gross margins, but more recently, compressing them.
- Revenue Growth
- Revenue increased from approximately US$198.5 million in March 2021 to US$953.2 million in September 2025. The most significant growth occurred between 2021 and 2022, with a more moderate, but still positive, growth rate observed from 2023 onwards. The growth rate appears to be slowing in the most recent quarters, with a noticeable deceleration between September 2024 and December 2024, and again between March and June 2025.
- Gross Profit and Margins
- Gross profit mirrored the revenue trend, increasing from US$151.9 million in March 2021 to US$766.3 million in September 2025. Gross profit margin initially expanded from 76.5% to 81.3% between March 2021 and December 2021. However, the margin has since experienced a decline, reaching 79.9% in September 2025, indicating increasing pressure on profitability from the cost of revenue.
- Operating Expenses
- Operating expenses, encompassing research and development, sales and marketing, and general and administrative costs, have consistently increased over the period. The rate of increase in operating expenses has, at times, outpaced revenue growth, particularly in the latter half of the observed period. This is especially noticeable in the increases in sales and marketing and research and development expenses. This suggests a growing investment in future growth, but also potential pressure on current profitability.
- Operating Income
- Operating income initially showed losses in the early quarters, transitioning to profitability in December 2021. Operating income peaked in December 2023 at US$57.3 million, but has since declined, with a significant loss reported in September 2025. This decline is attributable to the combined effect of slowing revenue growth and accelerating operating expense increases.
- Net Income
- Net income followed a similar pattern to operating income, moving from losses to profitability and then experiencing a recent decline. The impact of interest expense and other income is visible, with interest income consistently offsetting a portion of interest expense. However, the overall trend in net income mirrors the operating income trend, indicating that core operational performance is the primary driver of net income fluctuations.
In summary, the company experienced substantial growth in revenue and profitability, but recent quarters suggest a potential shift in trajectory. While revenue continues to increase, the rate of growth is slowing, and operating expenses are rising at a concerning pace, leading to a decline in operating and net income. Further investigation into the drivers of these expense increases and the factors affecting revenue growth is warranted.