Stock Analysis on Net
Stock Analysis on Net

Datadog Inc. (NASDAQ:DDOG)

$24.99

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Datadog Inc., consolidated cash flow 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
Net income (loss)
Depreciation and amortization
(Accretion) amortization of (discounts) premiums on marketable securities
Amortization of issuance costs
Net loss on conversion inducement and capped call settlement
Amortization of deferred contract costs
Stock-based compensation, net of amounts capitalized
Non-cash lease expense
Allowance for credit losses on accounts receivable
(Gain) loss on disposal of property and equipment
Accounts receivable, net
Deferred contract costs
Prepaid expenses and other current assets
Other assets
Accounts payable
Accrued expenses and other liabilities
Deferred revenue
Changes in operating assets and liabilities
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Net cash provided by operating activities
Purchases of marketable securities
Maturities of marketable securities
Proceeds from sale of marketable securities
Purchases of property and equipment
Capitalized software development costs
Cash paid for acquisition of businesses, net of cash acquired
Net cash (used in) provided by investing activities
Proceeds from exercise of stock options
Proceeds from issuance of common stock under the employee stock purchase plan
Proceeds from issuance of convertible senior notes, net of issuance costs
Proceeds from settlement of capped calls related to convertible senior notes
Purchase of capped calls related to convertible senior notes
Employee payroll taxes paid related to net share settlement under the employee stock purchase plan
Repayments of convertible senior notes
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

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).

Operating cash flow demonstrates a strong and consistent upward trajectory over the analyzed period, transitioning from quarterly averages of approximately 50 million USD in early 2021 to over 330 million USD by March 2026. While net income exhibited significant volatility—characterized by alternating periods of losses and profits—the net cash provided by operating activities remained positive throughout, indicating a robust ability to generate cash regardless of accounting profitability.

Cash Flow Quality and Non-Cash Adjustments
A significant divergence is observed between net income and operating cash flow, primarily driven by non-cash charges. Stock-based compensation represents the most substantial adjustment, growing from 28.8 million USD in March 2021 to approximately 196.8 million USD by March 2026. This suggests that while the company is cash-flow positive, a substantial portion of its operating expenses is settled via equity rather than cash. Additionally, amortization of deferred contract costs and depreciation show steady incremental increases, reflecting growth in the company's cost base and infrastructure.
Working Capital Management
Working capital exhibits characteristic SaaS volatility. Deferred revenue shows periodic spikes, particularly in December quarters, reflecting the timing of annual contract renewals and upfront payments. Accounts receivable fluctuations are pronounced, with significant increases in cash outflows during certain quarters, offset by large inflows in others, indicating a cyclicality in billing and collection patterns.
Investment Strategy and Capital Expenditure
Investing activities are dominated by the active management of marketable securities, with high volumes of both purchases and maturities. Capital expenditures, including purchases of property and equipment and capitalized software development costs, have trended upward. Capitalized software costs, in particular, grew from 6.1 million USD in March 2021 to 34.1 million USD in March 2026, signaling an intensified investment in product development and long-term intellectual property.
Financing and Capital Structure
Financing activities remained relatively quiet until December 2024, which saw a major liquidity event through the issuance of convertible senior notes totaling approximately 978.8 million USD. This was followed by a significant repayment of convertible senior notes in June 2025, amounting to 635.5 million USD. Throughout the period, the company maintained a consistent inflow of cash from the exercise of stock options and employee stock purchase plans.

Overall, the financial profile reveals a company that has successfully scaled its operations to generate substantial positive cash flow from its core business. The reliance on stock-based compensation is a primary driver of operating cash strength, while the strategic use of convertible debt in late 2024 and 2025 indicates an active approach to liquidity and capital structure management.