Stock Analysis on Net

Datadog Inc. (NASDAQ:DDOG)

$24.99

Income Statement
Quarterly Data

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Datadog Inc., consolidated income statement (quarterly data)

US$ in thousands

Microsoft Excel
3 months ended: 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
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 (loss), 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: 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
The revenue has exhibited a consistent and strong upward trend from March 31, 2020, through March 31, 2025, increasing from $131,248 thousand to $761,553 thousand. This shows sustained growth over the five-year horizon, with notable acceleration particularly from late 2020 onwards.
Cost of Revenue
The cost of revenue has also increased steadily, from $26,479 thousand in March 2020 to $157,628 thousand in March 2025, reflecting the scaling of operations alongside revenue growth. The rise in cost is proportional but slightly less steep than revenue, indicating stable gross margins.
Gross Profit
Gross profit has increased significantly from $104,769 thousand to $603,925 thousand across the same period. This improvement reflects the company's ability to manage its cost of revenue effectively while growing sales. The progressive increase suggests improved operational efficiency and profitability at the gross level.
Operating Expenses
Operating expenses, comprising research and development (R&D), sales and marketing, and general and administrative costs, have all grown substantially. R&D expenses rose from $40,824 thousand to $341,061 thousand, indicating strong investment in product development. Sales and marketing expenses similarly increased from $45,215 thousand to $214,291 thousand, supporting aggressive market expansion. General and administrative costs grew more moderately, from $14,952 thousand to $60,993 thousand.
Operating Income (Loss)
Operating income has fluctuated significantly across the timeline, starting positive at $3,778 thousand in March 2020, experiencing losses throughout much of 2020 and early 2021, and recovering to positive territory with significant gains by late 2021. However, variability remains with some periods showing operating losses towards 2024 and 2025. The inconsistency in operating income reflects challenges in managing operating expenses relative to revenue growth, particularly in periods of strong cost increases.
Interest and Other Income
Interest expenses have generally decreased over time, from $707 thousand in March 2020 to $2,963 thousand in March 2025, with some fluctuations. In contrast, interest income and other income, net, have increased notably, suggesting improved financial income streams contributing positively to overall profitability. Other income (loss), net, shows growing positive values, particularly in later years, enhancing net income.
Income Before Taxes and Tax Provision
Income before taxes has shown volatility, with losses in the early periods turning into positive and significantly higher earnings from 2021 onward, peaking around $56,136 thousand in December 2024. Provisions for income taxes have increased correspondingly but remain relatively moderate compared to pre-tax income, indicating effective tax management or the impact of tax incentives.
Net Income (Loss)
Net income has mirrored the pattern of operating income and pre-tax income, with initial losses transitioning to positive and growing profits after 2021. Despite some fluctuations in late 2022 and early 2023, net income improves steadily through 2024, though it decreases again in early 2025. The overall pattern indicates a maturing financial position with improving profitability but persistent challenges in maintaining consistent earnings growth.
Summary of Insights
Overall, the data reflects a company in a strong growth phase with rising revenues and gross profits supported by significant investments in R&D and marketing. The expansion in operating expenses has led to volatility in operating income, though increasing financial income helps offset some costs. Profitability trends suggest improving operational leverage and financial management, although periodic operating losses highlight areas of cost control challenges. The steady revenue growth alongside controlled cost of revenue improvements suggests potential for sustainable profitability as operating expense growth moderates or is optimized.