Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Datadog Inc., EBITDA calculation
US$ in thousands
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).
- Net Income (Loss)
- The net income exhibited a fluctuating trend over the analyzed periods. It started with a significant loss of approximately -24.5 million USD in 2020, which slightly improved to a loss of around -20.7 million USD in 2021. However, in 2022, the loss deepened substantially to about -50.2 million USD. A notable turnaround occurred in 2023, with the company achieving a positive net income of roughly 48.6 million USD, followed by a substantial increase to approximately 183.7 million USD in 2024. This signifies a marked improvement in profitability in the latter years.
- Earnings Before Tax (EBT)
- The EBT followed a trend similar to net income but with less extreme losses and gains. The data reflect consistent losses from 2020 to 2022, with values decreasing from around -22.2 million USD in 2020 to a low of -38.1 million USD in 2022. A strong upward reversal occurred in 2023, with earnings before tax reaching about 60.2 million USD, and this positive momentum continued into 2024 with an increase to roughly 203.9 million USD, indicating improved operational efficiency and tax management.
- Earnings Before Interest and Tax (EBIT)
- The EBIT metric shows volatility over the period, initially reflecting profitability of 8.2 million USD in 2020, which decreased sharply to 2.6 million USD in 2021 and then turned into a loss of 21.5 million USD in 2022. A significant recovery is evident starting in 2023, where EBIT rose dramatically to 66.5 million USD, reaching a high of approximately 211 million USD in 2024. This recovery points to better control of operating costs and improved core operations.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA reflects operational cash flow potential and shows an overall upward trend with some fluctuation. The value increased modestly from 23.7 million USD in 2020 to 25.6 million USD in 2021, then declined notably to 13.1 million USD in 2022. Subsequently, a considerable growth ensued in 2023, with EBITDA reaching 111 million USD and further advancing to 266 million USD in 2024. This suggests enhanced operational performance and effective cost management from 2023 onward, yielding stronger earnings capacity before non-cash charges and financial costs.
Enterprise Value to EBITDA Ratio, Current
Datadog Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 41,433,425) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 265,941) |
| Valuation Ratio | |
| EV/EBITDA | 155.80 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 13.53 |
| Adobe Inc. | 16.02 |
| AppLovin Corp. | 97.69 |
| Cadence Design Systems Inc. | 52.51 |
| CrowdStrike Holdings Inc. | 388.22 |
| International Business Machines Corp. | 26.54 |
| Intuit Inc. | 28.85 |
| Microsoft Corp. | 21.81 |
| Oracle Corp. | 27.64 |
| Palantir Technologies Inc. | 809.20 |
| Palo Alto Networks Inc. | 67.00 |
| Salesforce Inc. | 19.75 |
| ServiceNow Inc. | 59.98 |
| Synopsys Inc. | 43.37 |
| Workday Inc. | 44.02 |
| EV/EBITDA, Sector | |
| Software & Services | 30.70 |
| EV/EBITDA, Industry | |
| Information Technology | 39.40 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Datadog Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 40,694,775) | 41,140,353) | 23,380,717) | 49,849,201) | 28,975,067) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 265,941) | 111,002) | 13,094) | 25,568) | 23,662) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 153.02 | 370.63 | 1,785.61 | 1,949.67 | 1,224.54 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Accenture PLC | 19.87 | 17.26 | 14.25 | 23.31 | 17.46 | |
| Adobe Inc. | 22.06 | 34.07 | 22.32 | 35.44 | 43.06 | |
| AppLovin Corp. | 47.75 | 20.05 | 14.17 | 30.05 | — | |
| Cadence Design Systems Inc. | 42.25 | 55.61 | 42.11 | 39.61 | 45.75 | |
| CrowdStrike Holdings Inc. | 262.20 | — | — | — | — | |
| International Business Machines Corp. | 22.90 | 14.41 | 22.17 | 12.53 | 12.28 | |
| Intuit Inc. | 38.55 | 38.71 | 36.22 | 51.96 | 35.70 | |
| Microsoft Corp. | 23.66 | 22.92 | 20.17 | 24.59 | 21.74 | |
| Oracle Corp. | 21.81 | 21.80 | 17.12 | 13.78 | 11.54 | |
| Palantir Technologies Inc. | 551.39 | 175.93 | — | — | — | |
| Palo Alto Networks Inc. | 84.17 | 85.08 | 515.19 | — | 349.99 | |
| Salesforce Inc. | 31.64 | 38.31 | 38.88 | 33.83 | 49.45 | |
| ServiceNow Inc. | 87.89 | 96.48 | 104.31 | 147.45 | 220.91 | |
| Synopsys Inc. | 39.17 | 54.59 | 36.73 | 53.43 | 42.24 | |
| Workday Inc. | 86.37 | 216.44 | 147.90 | 670.04 | — | |
| EV/EBITDA, Sector | ||||||
| Software & Services | 27.48 | 25.41 | 22.68 | 26.04 | 23.49 | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 27.74 | 23.62 | 18.33 | 20.59 | 19.76 | |
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).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 40,694,775 ÷ 265,941 = 153.02
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value fluctuated significantly over the observed periods. Initially, it increased from approximately $28.98 billion at the end of 2020 to nearly $49.85 billion by the end of 2021, representing a substantial growth. However, in 2022, the value dropped sharply to around $23.38 billion. The following years saw a recovery, with EV rising to about $41.14 billion in 2023 and slightly decreasing to approximately $40.69 billion in 2024.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA exhibited a generally positive trend, starting at $23.66 million in 2020 and slightly increasing to $25.57 million in 2021. A notable decline occurred in 2022, with EBITDA falling to $13.09 million. From 2023 onwards, EBITDA experienced a robust recovery, surging to $111.00 million in 2023 and further increasing to $265.94 million in 2024. This indicates a strong improvement in operating profitability in the last two years of the period under review.
- EV/EBITDA Ratio
- The EV/EBITDA ratio demonstrates a clear downward trend throughout the period, signifying an improving valuation metric over time. It started extremely high at 1224.54 in 2020, increased even further to 1949.67 in 2021, and then began to decline sharply to 1785.61 in 2022. This declining trend became more pronounced with ratios falling to 370.63 in 2023 and reaching 153.02 in 2024. The decrease in EV/EBITDA indicates that the enterprise value relative to earnings improved significantly, suggesting the company may have become more attractive in terms of earnings valuation in the latter years.