NasdaqGS:DDOG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Datadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has Datadog's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DDOG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.6%

DDOG

3.3%

US Software

2.3%

US Market


1 Year Return

n/a

DDOG

37.4%

US Software

6.7%

US Market

Return vs Industry: Insufficient data to determine how DDOG performed against the US Software industry.

Return vs Market: Insufficient data to determine how DDOG performed against the US Market.


Shareholder returns

DDOGIndustryMarket
7 Day7.6%3.3%2.3%
30 Day23.5%15.0%7.4%
90 Day154.6%34.6%17.9%
1 Yearn/a38.4%37.4%9.0%6.7%
3 Yearn/a153.9%145.2%36.6%27.7%
5 Yearn/a248.8%228.2%64.2%46.1%

Price Volatility Vs. Market

How volatile is Datadog's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Datadog undervalued compared to its fair value and its price relative to the market?

35.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DDOG ($96.41) is trading above our estimate of fair value ($38.33)

Significantly Below Fair Value: DDOG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DDOG is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: DDOG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DDOG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DDOG is overvalued based on its PB Ratio (35.9x) compared to the US Software industry average (7x).


Next Steps

Future Growth

How is Datadog forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DDOG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DDOG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DDOG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DDOG's revenue (25.2% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: DDOG's revenue (25.2% 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 low in 3 years time (2.1%).


Next Steps

Past Performance

How has Datadog performed over the past 5 years?

96.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: DDOG is currently unprofitable.

Growing Profit Margin: DDOG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if DDOG's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare DDOG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DDOG is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.3%).


Return on Equity

High ROE: DDOG has a negative Return on Equity (-0.092%), as it is currently unprofitable.


Next Steps

Financial Health

How is Datadog's financial position?


Financial Position Analysis

Short Term Liabilities: DDOG's short term assets ($933.1M) exceed its short term liabilities ($210.6M).

Long Term Liabilities: DDOG's short term assets ($933.1M) exceed its long term liabilities ($53.1M).


Debt to Equity History and Analysis

Debt Level: DDOG is debt free.

Reducing Debt: DDOG has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DDOG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DDOG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 16.2% per year.


Next Steps

Dividend

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


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.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DDOG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Olivier Pomel (43yo)

10.08yrs

Tenure

US$18,577,873

Compensation

Mr. Olivier Pomel serves as Co-Founder Datadog, Inc., also serves as Chief Executive Officer and Director since June 2010. Prior to Datadog, Mr. Pomel built data systems for K-12 teachers as a Vice Preside ...


CEO Compensation Analysis

Compensation vs Market: Olivier's total compensation ($USD18.58M) is above average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Olivier's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Olivier Pomel
Co-Founder10.08yrsUS$18.58m10.07% $2.9b
Alexis Lê-Quôc
Co-Founder10.08yrsUS$11.33m5.56% $1.6b
Amit Agarwal
Chief Product Officer8.25yrsUS$11.42m1.7% $491.6m
David Obstler
Chief Financial Officer1.67yrsUS$7.62m0.50% $143.8m
Alexander Ljubich
Director of IR and FP&Ano datano datano data
Laszlo Kopits
VP, General Counsel & Secretary2.5yrsUS$1.10m0.13% $36.8m
Alex Rosemblat
Chief Marketing Officer4.17yrsno datano data
Armelle de Madre
Chief People Officer0.83yrno data0.0017% $482.0k
Dan Fougere
Chief Revenue Officer3.42yrsno data0.065% $18.8m
Scott Buxton
VP of Finance & Treasurerno datano datano data

3.8yrs

Average Tenure

49yo

Average Age

Experienced Management: DDOG's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Olivier Pomel
Co-Founder10.08yrsUS$18.58m10.07% $2.9b
Alexis Lê-Quôc
Co-Founder10.08yrsUS$11.33m5.56% $1.6b
Dev Ittycheria
Lead Independent Directorno dataUS$15.69k0.58% $167.0m
Michael Callahan
Independent Director9.08yrsUS$12.33k0.27% $78.2m
Julie Richardson
Independent Director1.17yrsUS$694.10kno data
Shardul Shah
Independent Director7.67yrsno data0.037% $10.7m
Matthew Jacobson
Independent Director1yrno data0.036% $10.3m

8.4yrs

Average Tenure

48yo

Average Age

Experienced Board: DDOG's board of directors are considered experienced (8.4 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: DDOG only recently listed within the past 12 months.


Top Shareholders

Company Information

Datadog, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Datadog, Inc.
  • Ticker: DDOG
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$28.863b
  • Shares outstanding: 299.38m
  • Website: https://www.datadoghq.com

Number of Employees


Location

  • Datadog, Inc.
  • 620, 8th Avenue
  • 45th Floor
  • New York
  • New York
  • 10018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DDOGNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDSep 2019
DDOG *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNSep 2019
3QDBST (Boerse-Stuttgart)YesClass A Common StockDEEURSep 2019

Biography

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, and log management to provide real-time observability of customers technology stack. Its platform also provides user experience and network performance monitoring, and various shared features, such as sophisticated dashboards, advanced analytics, collaboration tools, and alerting capabilities. The company was founded in 2010 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 23:53
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.