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.
Datadog Inc., consolidated income statement (quarterly data)
US$ in thousands
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).
Revenue exhibits a consistent and aggressive upward trajectory, growing from 198.5 million USD in the first quarter of 2021 to 1.12 billion USD by the second quarter of 2026. This growth is characterized by a steady increase in quarterly gains, reflecting a strong expansion of the top line over the analyzed period.
- Gross Profitability and Margin Stability
- Gross profit has scaled in tandem with revenue, rising from 151.9 million USD to 881.3 million USD. The gross margin remains robust and relatively stable, generally hovering between 76% and 80%, which indicates that the cost of revenue is being managed effectively relative to sales growth.
- Operating Expense Trends
- Operating expenses have increased significantly to support growth, with Research and Development (R&D) representing the largest expenditure. R&D spending climbed from 79.3 million USD to 478.0 million USD, signaling a heavy investment in product evolution. Sales and Marketing (S&M) and General and Administrative (G&A) expenses also trended upward, though S&M showed more volatility in its growth rate compared to the steady increase in R&D.
- Operating Income Volatility
- Operating income has been characterized by instability, fluctuating between losses and modest gains. After initial losses, a period of operating profitability was achieved in late 2021 and early 2022, followed by a significant downturn with losses peaking at 34.9 million USD in March 2023. While the company returned to operating profitability in several subsequent quarters, it experienced a sharp dip to a 35.5 million USD loss in June 2025 before recovering to a 5.5 million USD profit by June 2026.
- Non-Operating Income and Net Profitability
- A notable divergence exists between operating results and net income. Interest income and other income, net, grew substantially from 5.8 million USD in March 2021 to nearly 50 million USD by June 2026. This surge in non-operating income has acted as a critical buffer, offsetting operating losses and driving the company toward consistent net profitability from 2023 onward. Net income transitioned from early quarterly losses to a positive position, reaching 44.6 million USD in the final reported quarter.
The financial profile reveals a company in a high-growth phase, prioritizing market expansion and product development over consistent operating profitability. The bottom-line stability is currently heavily dependent on non-operating income rather than core operating efficiency.
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