| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 6/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
DDOG Stock Overview
Datadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally.
Rewards
Risk Analysis
Datadog Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$101.05 |
| 52 Week High | US$199.68 |
| 52 Week Low | US$81.12 |
| Beta | 1.27 |
| 1 Month Change | -4.16% |
| 3 Month Change | -31.21% |
| 1 Year Change | -5.09% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 169.11% |
Recent News & Updates
Datadog (NASDAQ:DDOG) Is Experiencing Growth In Returns On Capital
There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...
Datadog Stock Will Continue To Dominate, IBM Stock Will Probably Go Nowhere
Datadog is one of the most solid software high growers and there is a high chance that its stock will provide outsized returns. IBM’s stock will continue to do nothing, as the mature company fails to reignite its growth. Therefore, the best way to play this spread is long DDOG and short IBM.
Datadog: Time To Put On The Watch List
Shares of Datadog have crumbled more than 40% year to date, matching similarly steep losses across the software sector. Meanwhile, the company’s fundamentals have not seen any slowdown. Revenue grew at a stunning 80% y/y pace in Datadog’s most recent quarter. At the same time, Datadog has also significantly boosted its gross margins, operating margins, and free cash flow. Datadog remains the market leader in a very greenfield enterprise software category. The one inhibition to the stock remains its valuation, which is still expensive at ~18x forward revenue.
Shareholder Returns
| DDOG | US Software | US Market | |
|---|---|---|---|
| 7D | -3.9% | -3.1% | -2.2% |
| 1Y | -5.1% | -23.6% | -19.1% |
Return vs Industry: DDOG exceeded the US Software industry which returned -23.6% over the past year.
Return vs Market: DDOG exceeded the US Market which returned -21.2% over the past year.
Price Volatility
| DDOG volatility | |
|---|---|
| DDOG Average Weekly Movement | 12.5% |
| Software Industry Average Movement | 11.0% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.3% |
Stable Share Price: DDOG is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.
Volatility Over Time: DDOG's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2010 | 3,200 | Olivier Pomel | https://www.datadoghq.com |
Datadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. The company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, and security monitoring to provide real-time observability of its customers technology stack. Its platform also provides user experience monitoring, network performance monitoring, cloud security, developer-focused observability, and incident management, as well as a range of shared features, such as dashboards, analytics, collaboration tools, and alerting capabilities.
Datadog Fundamentals Summary
| DDOG fundamental statistics | |
|---|---|
| Market Cap | US$31.83b |
| Earnings (TTM) | US$2.06m |
| Revenue (TTM) | US$1.19b |
Over9,999x
P/E Ratio26.7x
P/S RatioIs DDOG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DDOG income statement (TTM) | |
|---|---|
| Revenue | US$1.19b |
| Cost of Revenue | US$261.69m |
| Gross Profit | US$931.58m |
| Other Expenses | US$929.52m |
| Earnings | US$2.06m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.0065 |
| Gross Margin | 78.07% |
| Net Profit Margin | 0.17% |
| Debt/Equity Ratio | 65.9% |
How did DDOG perform over the long term?
See historical performance and comparisonValuation
Is DDOG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for DDOG?
Other financial metrics that can be useful for relative valuation.
| What is DDOG's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$31.83b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 26x |
| Enterprise Value/EBITDA | 1180.9x |
| PEG Ratio | 256x |
Price to Sales Ratio vs Peers
How does DDOG's PS Ratio compare to its peers?
| DDOG PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 11.1x | ||
TEAM Atlassian | 19.3x | 24.2% | US$50.2b |
NEWR New Relic | 4.4x | 15.3% | US$3.5b |
SPLK Splunk | 5.2x | 18.9% | US$14.8b |
TTD Trade Desk | 15.7x | 21.0% | US$20.3b |
DDOG Datadog | 26.7x | 29.2% | US$31.8b |
Price-To-Sales vs Peers: DDOG is expensive based on its Price-To-Sales Ratio (26.7x) compared to the peer average (11.1x).
Price to Earnings Ratio vs Industry
How does DDOG's PE Ratio compare vs other companies in the US Software Industry?
Price-To-Sales vs Industry: DDOG is expensive based on its Price-To-Sales Ratio (26.7x) compared to the US Software industry average (4.5x)
Price to Sales Ratio vs Fair Ratio
What is DDOG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 26.7x |
| Fair PS Ratio | 21x |
Price-To-Sales vs Fair Ratio: DDOG is expensive based on its Price-To-Sales Ratio (26.7x) compared to the estimated Fair Price-To-Sales Ratio (21x).
Share Price vs Fair Value
What is the Fair Price of DDOG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: DDOG ($101.05) is trading below our estimate of fair value ($166.14)
Significantly Below Fair Value: DDOG is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: DDOG is poor value based on its PEG Ratio (256x)
Discover undervalued companies
Future Growth
How is Datadog forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Future Growth Score
6/6Future Growth Score 6/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
60.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DDOG's forecast earnings growth (60.4% per year) is above the savings rate (1.9%).
Earnings vs Market: DDOG's earnings (60.4% per year) are forecast to grow faster than the US market (13.6% per year).
High Growth Earnings: DDOG's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DDOG's revenue (29.2% per year) is forecast to grow faster than the US market (8.2% per year).
High Growth Revenue: DDOG's revenue (29.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DDOG's Return on Equity is forecast to be high in 3 years time (29.5%)
Discover growth companies
Past Performance
How has Datadog performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-24.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DDOG has a large one-off loss of $15.9M impacting its March 31 2022 financial results.
Growing Profit Margin: DDOG became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: DDOG has become profitable over the past 5 years, growing earnings by -24% per year.
Accelerating Growth: DDOG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: DDOG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (26.8%).
Return on Equity
High ROE: DDOG's Return on Equity (0.2%) is considered low.
Discover strong past performing companies
Financial Health
How is Datadog's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: DDOG's short term assets ($2.0B) exceed its short term liabilities ($602.0M).
Long Term Liabilities: DDOG's short term assets ($2.0B) exceed its long term liabilities ($810.2M).
Debt to Equity History and Analysis
Debt Level: DDOG has more cash than its total debt.
Reducing Debt: Insufficient data to determine if DDOG's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: DDOG's debt is well covered by operating cash flow (51.9%).
Interest Coverage: DDOG earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Discover healthy companies
Dividend
What is Datadog current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DDOG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DDOG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DDOG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DDOG's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as DDOG has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Olivier Pomel (44 yo)
12.08yrs
Tenure
US$8,632,636
Compensation
Mr. Olivier Pomel serves as Co-Founder at Datadog, Inc and also serves as Chief Executive Officer and Director since June 2010. He serves as Member of Advisory Board at Bigeye Data Labs, Inc. He has been M...
CEO Compensation Analysis
Compensation vs Market: Olivier's total compensation ($USD8.63M) is below average for companies of similar size in the US market ($USD13.34M).
Compensation vs Earnings: Olivier's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: DDOG's management team is considered experienced (2.8 years average tenure).
Board Members
Experienced Board: DDOG's board of directors are considered experienced (9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DDOG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.
Top Shareholders
Company Information
Datadog, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Datadog, Inc.
- Ticker: DDOG
- Exchange: NasdaqGS
- Founded: 2010
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$31.833b
- Shares outstanding: 315.02m
- Website: https://www.datadoghq.com
Number of Employees
Location
- Datadog, Inc.
- 620 8th Avenue
- 45th Floor
- New York
- New York
- 10018
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/07/04 00:00 |
| End of Day Share Price | 2022/07/01 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.