Datadog Inc (DDOG)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.48	4.18	4.19	3.83	3.69
DSO	days	81.44	87.34	87.06	95.38	98.81

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.48
= 81.44

The dataset indicates that Datadog Inc's Days Sales Outstanding (DSO) has experienced a general downward trend over the period from December 31, 2020, to December 31, 2024. Specifically, the DSO decreased from 98.81 days at the end of 2020 to 87.06 days at the end of 2022, reflecting an improvement in the company's collection efficiency and its ability to convert receivables into cash more promptly. During 2023, the DSO remained relatively stable with a slight increase to 87.34 days but continued the overall trend of being below the 2020 level. By the end of 2024, the DSO further declined to 81.44 days, indicating a sustained enhancement in accounts receivable management. This pattern suggests that Datadog has progressively optimized its credit and collection processes over the analyzed period. A consistently lower DSO can be associated with improved liquidity and reduced working capital requirements, which are favorable indicators for the company's operational health.