Datadog Inc.

DDOG
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.0B
Q1 2026 · +32% YoY
TTM ROIC
15%
FY2025 · NOPAT (Non-GAAP EBIT × (1-26% tax)) / Invested Capital (total assets - excess cash - current liabilities) · WACC ~9.5% · Moat spread +5.5pp

Financial Snapshot

ticker: DDOG step: 04 generated: 2026-05-13 source: quick-research

Datadog, Inc. (DDOG) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $1.68B $2.13B $2.68B +25.8%
Non-GAAP Op. Margin ~20% ~23% ~24%
GAAP Net Income ~-$0.1B ~$0.2B ~$0.2B
Non-GAAP EPS (diluted) ~$0.77 ~$1.36 ~$1.63

FY2025: Revenue $3.41B (+27.6%); record FCF $915M (+18% YoY); Q1 2026: Revenue $1.006B (+32% YoY) — first $1B quarter, stock +37.9%. FY2026 guidance raised to $4.06–4.10B.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$0.87B
Free Cash Flow $0.775B
Capital Expenditures ~$0.1B
Cash & Equivalents ~$3.5B
Total Debt ~$0.8B (convertible notes)

FY2025: FCF reached $915M (26% FCF margin) — consistent Rule of 40 leader (~50+ score). Net cash positive. No dilutive equity issuances; buyback program initiated.

Key Ratios (approximate)

  • P/E: ~65x (non-GAAP FY2026E) | EV/EBITDA: ~50x | FCF Yield: ~2.4%
  • Revenue Growth (TTM): ~28–32% | Non-GAAP Operating Margin: ~24%

Growth Profile

Datadog is a Rule of 40 star: ~28–32% revenue growth + ~24% non-GAAP operating margin = ~52–56 Rule of 40 score. Revenue has compounded from $1.68B (2022) to $3.41B (2025) to a $4.1B+ run rate in Q1 2026. AI infrastructure monitoring is the highest-growth segment — as enterprises deploy AI workloads at scale, they need Datadog to monitor the LLM API calls, GPU utilization, and token costs. Management raised FY2026 guidance to $4.06–4.10B; Guggenheim projects 27% growth vs. consensus 20%.

Forward Estimates

  • FY2026: Revenue $4.06–4.10B (~20% official guide; consensus ~20–27%); FCF margin ~26–28%
  • $1M+ ARR customers: 462 (FY2024) growing 17% YoY — enterprise expansion accelerating
  • Analyst mean PT: ~$143 (26% upside from ~$113; 34-analyst consensus Buy)
  • Stock is -30% from 52-week highs despite strong fundamentals — "buy the dip" setup per Wall Street
  • AI observability as growth driver: AI companies monitoring LLM stacks are high-consumption, high-spend customers

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $DDOG.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/ddog/financials/md · → thesis · → memo