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: 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 1,006,426 953,194 885,651 826,760 761,553 737,727 690,016 645,279 611,253 589,649 547,536 509,460 481,714 469,399 436,533 406,138 363,030 326,198 270,488 233,549 198,549
Cost of revenue (209,228) (186,894) (176,457) (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)
Gross profit 797,198 766,300 709,194 660,782 603,925 593,549 552,260 521,780 501,155 484,820 444,217 407,614 381,800 372,642 342,934 324,213 288,568 259,049 207,156 176,451 151,883
Research and development (435,298) (417,926) (401,982) (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)
Sales and marketing (279,823) (264,377) (238,729) (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)
General and administrative (74,750) (74,641) (74,292) (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)
Operating expenses (789,871) (756,944) (715,003) (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)
Operating income (loss) 7,327 9,356 (5,809) (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)
Interest expense (3,119) (2,600) (2,421) (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)
Interest income and other income, net 54,722 46,714 43,897 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
Other income, net 51,603 44,114 41,476 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
Income (loss) before (provision for) benefit from income taxes 58,930 53,470 35,667 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)
(Provision for) benefit from income taxes (6,356) (6,903) (1,782) (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)
Net income (loss) 52,574 46,567 33,885 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)

Based on: 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 performance over the analyzed period is characterized by consistent revenue expansion and a strategic transition from net losses toward sustained profitability. Revenue grew from 198.5 million US dollars in the first quarter of 2021 to over 1 billion US dollars by the first quarter of 2026, representing a significant scaling of operations. While gross profit followed a similar upward trajectory, the company experienced considerable volatility in operating income due to aggressive investments in research, development, and market expansion.

Revenue and Gross Margin Trends
A strong and uninterrupted growth trend in revenue is observed throughout the period. Gross profit increased accordingly, growing from 151.9 million US dollars to 797.2 million US dollars. The growth rate of revenue consistently outpaced the growth rate of the cost of revenue, suggesting an improvement in gross margin efficiency over time.
Operating Expense Analysis
Operating expenses showed a steady increase, driven primarily by research and development (R&D) and sales and marketing (S&M). R&D expenses grew from 79.3 million US dollars to 435.3 million US dollars, indicating a heavy commitment to product innovation. S&M and general and administrative (G&A) costs also trended upward, though S&M growth showed periods of stabilization relative to the rapid revenue climb.
Operating Income Volatility
Operating income remained volatile, oscillating between losses and modest gains. Significant operating losses were recorded between mid-2022 and early 2023, and again in early 2025. This suggests that the company prioritized growth and infrastructure investment over short-term operating profitability.
Net Income and Non-Operating Impact
A pivotal shift in net profitability occurred starting in the third quarter of 2023. Net income transitioned from periodic losses to consistent positive figures, reaching 52.6 million US dollars by the first quarter of 2026. This shift was heavily supported by a substantial increase in interest income and other net income, which rose from approximately 5.8 million US dollars in early 2021 to 54.7 million US dollars by early 2026, often offsetting operating losses to produce a positive bottom line.

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