DDOGDatadog
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DDOG?
Datadog keeps 0.41% of every revenue dollar as operating profit, against 6.4% for the median Software - Application name.
Operating margin · Software - Application median 6.4% · 12 months to Q2 2026
- Share count, year on year
- +3.4%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 44%
R&D as % of revenue
- Gross margin
- 80%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | −2.3% |
| FY2021 | −1.9% |
| FY2022 | −3.5% |
| FY2023 | −1.6% |
| FY2024 | 2.0% |
| FY2025 | −1.3% |
Details›
- Gross margin12 months to Q2 2026
- 80%
- Operating margin12 months to Q2 2026
- 0.41%
- Net margin12 months to Q2 2026
- 4.5%
- Free cash flow margin
- 30%
- R&D as % of revenue
- 44%
- Revenue, trailing twelve months
- $3.97B
- Free cash flow, trailing twelve months
- $1.18B
- Net income, trailing twelve months
- $178M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
The closest names by size in the same industry