Executive Summary
Datadog Inc delivered a solid fourth quarter of calendar year 2024 (QQ4 2024) with revenue of $737.7 million, up 25.1% year over year and 6.9% quarter over quarter. The gross margin remained robust at approximately 80.4%, underscoring a high-margin SaaS platform, while operating income remained modest at $9.4 million (operating margin ~1.27%), reflecting ongoing investments in R&D and go-to-market activities. Net income totaled $45.6 million (net margin ~6.18%), and earnings per diluted share stood at $0.13. Free cash flow was strong at $257.5 million, driving a net cash balance of roughly $1.25 billion and contributing to a sizable cash-and-investments position of over $4.2 billion in liquid assets. The quarter capped a year in which Datadog demonstrated durable revenue growth and substantial cash generation, even as operating profitability lagged peers due to continued investment in scale and product expansion.
Key Performance Indicators
QoQ: -53.68% | YoY:-66.15%
QoQ: -11.81% | YoY:-15.56%
QoQ: -13.33% | YoY:-18.75%
Key Insights
Revenue: $737.727m (YoY +25.11%, QoQ +6.91%); Gross Profit: $593.549m (YoY +22.48%, QoQ +7.48%), Gross Margin: ~80.5% (0.8046); Operating Income: $9.392m (YoY -66.15%, QoQ -53.68%), Operating Margin: ~1.27%; Net Income: $45.594m (YoY -15.56%, QoQ -11.81%), Net Margin: ~6.18%; EPS (Diluted): $0.13 (YoY -18.75%, QoQ -13.33%); Free Cash Flow: $257.467m; Operating Cash Flow: $265.228m; Cash at End of Period: $1.247b; Total Debt: ~$1.842b; Net Debt: ~$0.595b; Cash & Short-Term Investments: ~$4.18...
Financial Highlights
Revenue: $737.727m (YoY +25.11%, QoQ +6.91%); Gross Profit: $593.549m (YoY +22.48%, QoQ +7.48%), Gross Margin: ~80.5% (0.8046); Operating Income: $9.392m (YoY -66.15%, QoQ -53.68%), Operating Margin: ~1.27%; Net Income: $45.594m (YoY -15.56%, QoQ -11.81%), Net Margin: ~6.18%; EPS (Diluted): $0.13 (YoY -18.75%, QoQ -13.33%); Free Cash Flow: $257.467m; Operating Cash Flow: $265.228m; Cash at End of Period: $1.247b; Total Debt: ~$1.842b; Net Debt: ~$0.595b; Cash & Short-Term Investments: ~$4.189b; Current Ratio: ~2.61; Days Sales Outstanding: 76.34; Cash Conversion Cycle: 9.18 days; P/S: ~66.07x; P/E: ~267x; EV/FCF: ~189x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
737.73M |
25.11% |
6.91% |
| Gross Profit |
593.55M |
22.48% |
7.48% |
| Operating Income |
9.39M |
-66.15% |
-53.68% |
| Net Income |
45.59M |
-15.56% |
-11.81% |
| EPS |
0.13 |
-18.75% |
-13.33% |
Key Financial Ratios
operatingProfitMargin
1.27%
operatingCashFlowPerShare
$0.78
freeCashFlowPerShare
$0.76
priceEarningsRatio
267.27
Management Commentary
Transcript not provided in the data set. Unable to extract management quotes or themes from the earnings call. If a transcript becomes available, I can synthesize themes by strategy, operations, market conditions, and execution milestones with context and significance.
Forward Guidance
No explicit forward guidance is included in the provided data. Based on historic tempo and cadence, the key catalysts for Datadog likely include: continued platform expansion (observability + security monitoring), deeper AI-enabled insights and automation, cross-sell to existing customers, and multi-cloud adoption. Potential headwinds include intensity of R&D/S&M investments, competitive intensity (e.g., Dynatrace, Elastic, New Relic), and macro cloud IT spend cycles. Investors should monitor quarterly ARR growth (not provided in this snapshot), gross margins trend as product mix shifts, operating expense leverage, and free cash flow conversion as a proxy for scalable profitability.