Datadog, Inc.DDOG
NasdaqGS•Technology•Software - Application
Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally. The company's products comprise infrastructure and application performance monitoring, log management, observability pipelines, synthetics, real user monitoring, product analytics, continuous profiler, database monitoring, data observability, LLM observability, error tracking, network monitoring, incident response, workflow automation and App builder, event management, bits AI SRE, cloud cost management, cloud security, code security, cloud SIEM, threat management, sensitive data scanner, and CI visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.
Datadog, Inc. (DDOG) reported trailing twelve months revenue of $3.67B as of March 2026, a 29.5% increase year-over-year. Quarterly revenue reached $1.01B, reflecting continued top-line momentum.
Datadog, Inc. generated $135.67M in TTM net income, with quarterly EBITDA of $25.25M. The operating margin expanded from -1.6% to 0.7%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (0.7%) and net margin (5.2%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 3.2% a year ago, signaling stronger bottom-line efficiency.
DDOG trades at a P/E of 301.6x (a premium multiple) and a P/S of 11.1x. The price-to-book ratio of 10.3x indicates a significant premium over book value.
The company generated $323.26M in free cash flow over the trailing twelve months, a 23.0% increase year-over-year, indicating strong cash generation ability. The balance sheet shows $6.95B in total assets with no in long-term debt against $3.99B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 0.2%. The business may lack pricing power or face rising costs.'
ROE is positive at ~5.0% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~53.4% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 171.4% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF covers net income by 14.2x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding increased 5.5% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation