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DDOG

Datadog NasdaqGS:DDOG Stock Report

Last Price

US$101.05

Market Cap

US$31.8b

7D

-3.9%

1Y

-5.1%

Updated

04 Jul, 2022

Data

Company Financials +
DDOG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance2/6
Financial Health5/6
Dividends0/6

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.

Datadog Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Datadog
Historical stock prices
Current Share PriceUS$101.05
52 Week HighUS$199.68
52 Week LowUS$81.12
Beta1.27
1 Month Change-4.16%
3 Month Change-31.21%
1 Year Change-5.09%
3 Year Changen/a
5 Year Changen/a
Change since IPO169.11%

Recent News & Updates

Jun 29
Datadog (NASDAQ:DDOG) Is Experiencing Growth In Returns On Capital

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...

Jun 29

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.

Jun 10

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

DDOGUS SoftwareUS 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

Is DDOG's price volatile compared to industry and market?
DDOG volatility
DDOG Average Weekly Movement12.5%
Software Industry Average Movement11.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

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

FoundedEmployeesCEOWebsite
20103,200Olivier Pomelhttps://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

How do Datadog's earnings and revenue compare to its market cap?
DDOG fundamental statistics
Market CapUS$31.83b
Earnings (TTM)US$2.06m
Revenue (TTM)US$1.19b

Over9,999x

P/E Ratio

26.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DDOG income statement (TTM)
RevenueUS$1.19b
Cost of RevenueUS$261.69m
Gross ProfitUS$931.58m
Other ExpensesUS$929.52m
EarningsUS$2.06m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.0065
Gross Margin78.07%
Net Profit Margin0.17%
Debt/Equity Ratio65.9%

How did DDOG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is DDOG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation 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.

DDOG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue26x
Enterprise Value/EBITDA1180.9x
PEG Ratio256x

Price to Sales Ratio vs Peers

How does DDOG's PS Ratio compare to its peers?

DDOG PS Ratio vs Peers
The above table shows the PS ratio for DDOG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average11.1x
TEAM Atlassian
19.3x24.2%US$50.2b
NEWR New Relic
4.4x15.3%US$3.5b
SPLK Splunk
5.2x18.9%US$14.8b
TTD Trade Desk
15.7x21.0%US$20.3b
DDOG Datadog
26.7x29.2%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.

DDOG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio26.7x
Fair PS Ratio21x

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)


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Future Growth

How is Datadog forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

6/6

Future 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

2/6

Past 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

5/6

Financial 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


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Dividend

What is Datadog current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.