Operating Profit Margin
since 2019
Calculation
Datadog Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 2.02% | = | 100 | × | 54,284) | ÷ | 2,684,275) |
| Dec 31, 2023 | -1.57% | = | 100 | × | (33,464) | ÷ | 2,128,359) |
| Dec 31, 2022 | -3.50% | = | 100 | × | (58,695) | ÷ | 1,675,100) |
| Dec 31, 2021 | -1.86% | = | 100 | × | (19,156) | ÷ | 1,028,784) |
| Dec 31, 2020 | -2.28% | = | 100 | × | (13,773) | ÷ | 603,466) |
| Dec 31, 2019 | -5.55% | = | 100 | × | (20,140) | ÷ | 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 notable trends over the analyzed period. Revenue has exhibited consistent and strong growth, rising from approximately $363 million in 2019 to an estimated $2.68 billion in 2024. This upward trajectory reflects substantial expansion in the company's sales or service income.
Despite this revenue growth, the operating income (loss) figures indicate ongoing variability and challenges in maintaining profitability. Operating losses were recorded from 2019 through 2023, with the loss magnitude worsening significantly in 2022, reaching nearly $58.7 million. However, a positive turnaround is observed in 2024, with operating income switching to a gain of approximately $54.3 million.
The operating profit margin closely aligns with the operating income trends. The margins remained negative from 2019 to 2023, fluctuating between -5.55% in 2019 and improving to -1.57% in 2023, despite a dip in 2022. The margin turns positive in 2024 at 2.02%, signaling enhanced operational efficiency or cost management that has allowed the company to not only reduce losses but achieve profitability.
- Revenue
- Shows a strong and steady growth throughout the period, indicating successful expansion and demand generation.
- Operating Income (Loss)
- Marked by operations losses for five consecutive years, with a peak in 2022, followed by a significant recovery to profitability in 2024.
- Operating Profit Margin
- Negative throughout most years, with fluctuations reflecting varying degrees of operational challenges, before turning positive in the latest year, suggesting improved profitability dynamics.
Overall, the data portrays a company in a phase of rapid growth accompanied by operational challenges that affected profitability, but with a clear positive shift in the latest period indicating a possible change in business strategy, cost control, or scaling efficiency leading to improved financial health.
Comparison to Competitors
Datadog Inc., operating profit margin, long-term trends, comparison to competitors
| Datadog Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac 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 | 2.02% | 14.79% | 31.35% | 29.10% | -0.07% | 42.71% | 22.29% | 44.64% | 28.99% | 10.83% | 8.52% | 14.38% | 12.42% | 22.13% | 2.52% |
| Dec 31, 2023 | -1.57% | 13.74% | 34.26% | 30.59% | -8.48% | 42.47% | 21.86% | 41.77% | 26.21% | 5.39% | 5.62% | 3.29% | 8.49% | 21.72% | -3.57% |
| Dec 31, 2022 | -3.50% | 15.21% | 34.64% | 30.15% | -9.82% | 39.38% | 20.20% | 42.06% | 25.74% | -8.46% | -3.43% | 2.07% | 4.90% | 22.87% | -2.27% |
| Dec 31, 2021 | -1.86% | 15.08% | 36.76% | 26.07% | -10.58% | 38.40% | 25.95% | 41.59% | 37.58% | -26.66% | -7.15% | 2.14% | 4.36% | 17.48% | -5.76% |
| Dec 31, 2020 | -2.28% | 14.69% | 32.93% | 24.06% | -30.34% | 22.86% | 28.34% | 37.03% | 35.57% | -107.41% | -5.25% | 1.74% | 4.40% | 16.83% | -13.85% |
| Dec 31, 2019 | -5.55% | 14.59% | 29.25% | 21.05% | — | 21.86% | 27.33% | 34.14% | 34.26% | — | -1.87% | 4.03% | 1.22% | 15.48% | -16.42% |
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).