Net Profit Margin
since 2019
Calculation
Datadog Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 6.85% | = | 100 | × | 183,746) | ÷ | 2,684,275) |
| Dec 31, 2023 | 2.28% | = | 100 | × | 48,568) | ÷ | 2,128,359) |
| Dec 31, 2022 | -2.99% | = | 100 | × | (50,160) | ÷ | 1,675,100) |
| Dec 31, 2021 | -2.02% | = | 100 | × | (20,745) | ÷ | 1,028,784) |
| Dec 31, 2020 | -4.07% | = | 100 | × | (24,547) | ÷ | 603,466) |
| Dec 31, 2019 | -4.61% | = | 100 | × | (16,710) | ÷ | 362,780) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 US$ in thousands
The financial data reveals several key trends over the six-year horizon. Revenue demonstrates a consistent and robust upward trajectory, increasing substantially each year. From 2019 to 2024, revenue grew from approximately $363 million to over $2.68 billion, indicating strong top-line expansion and successful market penetration or business scaling.
Net income (loss) exhibits a more volatile pattern with notable fluctuations. The company reported net losses from 2019 through 2022, with the largest loss occurring in 2022 at around $50.2 million. However, there is a significant turnaround starting in 2023, where net income turns positive, reaching about $48.6 million, followed by a substantial increase to approximately $183.7 million in 2024. This shift suggests improvements in operational efficiency, cost management, or other factors contributing to profitability.
The net profit margin correlates with the net income trend, starting negative at around -4.61% in 2019 and gradually becoming less negative through 2021, dipping again slightly in 2022 to -2.99%. In 2023, the margin turns positive at 2.28%, further increasing to 6.85% in 2024. This progression confirms a transition from unprofitable to profitable operations and indicates enhanced profitability relative to revenue.
- Revenue Trend
- Consistent and rapid growth each year, expanding from $362.8 million to $2.68 billion over six years.
- Net Income (Loss) Trend
- Losses incurred from 2019 to 2022, peaking in 2022; strong recovery and profitability achieved in 2023 and 2024.
- Net Profit Margin Trend
- Negative margins reversing to positive in 2023, with continued improvement in 2024, reflecting enhanced profitability.
Overall, the data depicts a company in a rapid growth phase with initial challenges related to profitability, successfully transitioning into a profitable entity in recent years. This suggests effective scaling combined with improved management of expenses relative to revenue growth.
Comparison to Competitors
Datadog Inc., net profit margin, long-term trends, comparison to competitors
| Datadog Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 6.85% | 11.19% | 25.85% | 22.74% | 2.92% | 29.86% | 9.60% | 18.19% | 35.96% | 19.76% | 16.13% | 32.11% | 11.87% | 12.97% | 36.94% | 19.02% |
| Dec 31, 2023 | 2.28% | 10.72% | 27.97% | 25.46% | -8.18% | 28.37% | 12.13% | 16.59% | 34.15% | 17.02% | 9.43% | 6.38% | 0.66% | 19.30% | 21.05% | -5.90% |
| Dec 31, 2022 | -2.99% | 11.17% | 27.01% | 23.84% | -16.18% | 27.12% | 2.71% | 16.23% | 36.69% | 15.83% | -19.61% | -4.85% | 5.45% | 4.49% | 19.38% | 0.57% |
| Dec 31, 2021 | -2.02% | 11.69% | 30.55% | 23.29% | -10.59% | 29.78% | 10.01% | 21.41% | 36.45% | 33.96% | -33.75% | -11.72% | 19.16% | 3.90% | 18.02% | -6.54% |
| Dec 31, 2020 | -4.07% | 11.52% | 40.88% | 22.02% | -29.45% | 18.26% | 7.59% | 23.78% | 30.96% | 25.94% | -106.75% | -7.83% | 0.74% | 2.62% | 18.03% | -13.25% |
| Dec 31, 2019 | -4.61% | 11.06% | 26.42% | 42.33% | — | 16.56% | 12.22% | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 18.11% | 15.84% | -14.82% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Comparison to Sector (Software & Services)
Datadog Inc., net profit margin, long-term trends, comparison to sector (software & services)
| Datadog Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2024 | 6.85% | 24.65% |
| Dec 31, 2023 | 2.28% | 21.87% |
| Dec 31, 2022 | -2.99% | 21.62% |
| Dec 31, 2021 | -2.02% | 25.23% |
| Dec 31, 2020 | -4.07% | 20.01% |
| Dec 31, 2019 | -4.61% | 21.59% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Comparison to Industry (Information Technology)
Datadog Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Datadog Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 6.85% | 20.61% |
| Dec 31, 2023 | 2.28% | 20.36% |
| Dec 31, 2022 | -2.99% | 22.42% |
| Dec 31, 2021 | -2.02% | 23.60% |
| Dec 31, 2020 | -4.07% | 19.65% |
| Dec 31, 2019 | -4.61% | 19.84% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).