Datadog, Inc. (DDOG)
Datadog provides a digital dashboard that helps companies monitor the health, speed, and security of their cloud-based software systems.
Is Datadog, Inc. a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Very high gross margins suggest a highly scalable business model. Worth weighing: The current share price reflects very high expectations for future growth.
Is this normal for this company?
Each figure against the range this same company has produced recently. Neither end of a range is the good end.
Share price divided by the earnings actually reported over the four most recent quarters. The range is the same calculation at each of this company's last few results, so roughly the past year.
Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.
How these ranges are built
Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.
What does Datadog, Inc. do?
Think of Datadog as a high-tech control room for businesses that run their operations online. They charge companies a subscription fee to keep an eye on their servers and apps, ensuring everything runs smoothly without crashing. It comes down to whether they can keep growing their customer base while managing the steep costs of building such complex software.
On our factor screen it looks strongest on growth and momentum, and weakest on value.
- !Pays no dividend - the whole return rides on the share price
- ✓Growing - revenue up about 36% over the year
- !High P/E of 494 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- Growth screens high
- Momentum screens high
- Value screens low
- Income screens low
Does Datadog, Inc. pay a dividend?
No - Datadog, Inc. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.
Does Datadog, Inc. have more cash or more debt?
It holds about $4.99B in cash against about $1.28B of debt - so it has net cash of about $3.71B. More cash than debt is a cushion: it does not need to borrow just to cover what it owes.
From the latest reported balance sheet. Cash and debt levels change, and some borrowing is normal - this is context, not a judgment.
What do Datadog, Inc.'s numbers mean?
How has it performed?
Growth of £1,000, the worst fall, and year by year
Over about 2 years to 2026-09-11. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Datadog, Inc. actually fallen?
Over the last 2 years of daily prices, Datadog, Inc. fell as much as −49% from a high to a later low. Falls like this are normal when you own a share.
Past falls are not a forecast - it can fall further, or recover.
How has it done year by year?
Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.
A closer look at the numbers
Ownership, earnings history, where the money goes, and the outlook range
Does the share price tell you if it's cheap or expensive?
Who owns Datadog, Inc.?
About 91% of Datadog, Inc., or about 91 in every 100 shares, is held by big institutions such as pension and index funds, and company insiders hold about 1%. The rest, roughly 8%, is held by the public and smaller investors.
What this does and doesn't tell you
This is a recent snapshot of the share register, and it moves. We don't read anything into who owns what - a high institutional share is common for any large listed company and is not a signal about it.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
How much money does Datadog, Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Where does each £100 of Datadog, Inc.'s sales go?
A rough split of the latest full-year figures: of every £100 of sales, about £20 covers making the product or service, £76 goes on running costs, tax and interest, and about £4 is left as profit. Margins vary a lot by industry, and one-off items can distort a single year.
When does Datadog, Inc. report earnings, and how did recent quarters go?
Datadog, Inc. is next scheduled to report on about 2026-11-05 - dates can move, and we don't predict results; this just tells you when to look.
‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-08-06 | $0.58 | $0.65 | Beat +11% |
| 2026-05-07 | $0.51 | $0.60 | Beat +18% |
| 2026-02-10 | $0.55 | $0.59 | Beat +6% |
| 2025-11-06 | $0.46 | $0.55 | Beat +20% |
| 2025-08-07 | $0.41 | $0.46 | Beat +13% |
| 2025-05-06 | $0.42 | $0.46 | Beat +8% |
Across the last 6 quarters here, Datadog, Inc. came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Where these figures come from
Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.
What are the scenarios for Datadog, Inc.?
An illustrative range for the year ahead — not a prediction or a price target.
What are the pros, cons and common questions?
The case each way, and the questions people ask
Datadog becomes the essential standard for all cloud infrastructure management.
The company fails to turn its high revenue into significant long-term profits.
What are the pros and cons of Datadog, Inc.?
A balance check, not a score or verdict.
- Very high gross margins suggest a highly scalable business model.
- Strong revenue growth: How fast the company's sales grew versus a year ago. indicates the service is in high demand.
- Essential service that is difficult for customers to switch away from once installed.
- The current share price reflects very high expectations for future growth.
- Does not pay a dividend, meaning investors only benefit from share price changes.
- Net profit margins are currently quite thin compared to the high revenue.
- High volatility means the share price can drop sharply during market downturns.
- Intense competition from major cloud platforms that offer similar built-in tools.
- Reliance on corporate IT budgets which can be cut during economic uncertainty.
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained drop in revenue growth rates.
- Evidence that customers are choosing cheaper, built-in alternatives over Datadog.
Common questions about Datadog, Inc.
Does Datadog, Inc. pay a dividend?
No - Datadog, Inc. does not currently pay a dividend, so the return would rest on the share price. Many growing companies reinvest profits instead of paying them out.
When does Datadog, Inc. report earnings next?
Datadog, Inc. is next scheduled to report results on about 2026-11-05. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.
More in Technology
Palo Alto Networks, Inc.
Jack Henry & Associates, Inc.
F5, Inc.
Lumentum Holdings Inc.
Corning Incorporated
Fortive Corporation
Automatic Data Processing, Inc.
Oracle CorporationBuilt from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.