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, 2025 | 3.14% | = | 100 | × | 107,741) | ÷ | 3,427,158) |
| 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: 2025-12-31), 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 net profit margin exhibited a volatile pattern between 2019 and 2025. Initially, the metric demonstrated consistent negative values, followed by a significant improvement and subsequent moderation.
- Initial Losses (2019-2022)
- From 2019 through 2022, the net profit margin remained negative, ranging from -4.61% to -2.02%. While the negative margin decreased in magnitude over this period, indicating some improvement in profitability relative to revenue, the company consistently operated at a net loss. The largest negative margin was observed in 2022, at -2.99%.
- Profitability Emergence (2023)
- A substantial shift occurred in 2023, with the net profit margin turning positive at 2.28%. This represents a significant improvement from the prior years and indicates the company achieved net income. This positive margin was supported by a considerable increase in net income.
- Peak Profitability (2024)
- The net profit margin reached its highest point in 2024, at 6.85%. This suggests a period of strong profitability and efficient operations. The increase was driven by a substantial rise in net income alongside continued revenue growth.
- Moderation (2025)
- In 2025, the net profit margin decreased to 3.14%, although remaining positive. This indicates a moderation in profitability compared to the peak in 2024. While revenue continued to grow, the rate of net income increase slowed, resulting in the lower margin.
Overall, the trend suggests a transition from a period of sustained losses to one of increasing, though recently moderating, profitability. The company’s ability to achieve and maintain a positive net profit margin is a key indicator of its financial health and operational efficiency.
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Comparison to Competitors
Datadog Inc., net profit margin, long-term trends, comparison to competitors
| Datadog Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | 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, 2025 | 3.14% | 11.02% | 30.00% | 60.83% | 20.94% | 15.69% | 20.55% | 36.15% | 21.68% | 36.31% | 12.30% | 16.35% | 13.16% | 18.89% | 6.23% |
| Dec 31, 2024 | 6.85% | 11.19% | 25.85% | 33.55% | 22.74% | 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% | 10.87% | 25.46% | 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% | -6.84% | 23.84% | 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% | 1.27% | 23.29% | 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% | 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% | 12.22% | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 18.11% | 15.84% | -14.82% |
Based on: 10-K (reporting date: 2025-12-31), 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, 2025 | 3.14% | 26.19% |
| Dec 31, 2024 | 6.85% | 24.83% |
| Dec 31, 2023 | 2.28% | 21.91% |
| Dec 31, 2022 | -2.99% | 21.55% |
| Dec 31, 2021 | -2.02% | 25.12% |
| Dec 31, 2020 | -4.07% | 20.08% |
| Dec 31, 2019 | -4.61% | 21.61% |
Based on: 10-K (reporting date: 2025-12-31), 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, 2025 | 3.14% | 25.66% |
| Dec 31, 2024 | 6.85% | 20.48% |
| Dec 31, 2023 | 2.28% | 20.24% |
| Dec 31, 2022 | -2.99% | 22.27% |
| Dec 31, 2021 | -2.02% | 23.48% |
| Dec 31, 2020 | -4.07% | 19.76% |
| Dec 31, 2019 | -4.61% | 19.73% |
Based on: 10-K (reporting date: 2025-12-31), 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).