# Datadog Inc. (DDOG) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-18  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/DDOG/thesis · /stocks/DDOG/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/DDOG/fundamental

## Navigation

- Overview: /stocks/DDOG
- Financials (this page): /stocks/DDOG/financials
- Thesis: /stocks/DDOG/thesis
- Investment Memo: /stocks/DDOG/memo
- Coverage universe: /stocks