Datadog Inc (DDOG)

Days of sales outstanding (DSO)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Receivables turnover		5.78	4.48	5.21	4.49	5.01	4.18	5.01	5.70	4.89	4.19	4.39	4.47	4.33	3.83	3.92	4.06	4.35	3.69	4.46	3.87
DSO	days	63.12	81.44	70.10	81.32	72.92	87.34	72.82	64.09	74.69	87.06	83.11	81.64	84.22	95.38	93.15	89.94	83.86	98.81	81.85	94.20

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.78
= 63.12

The analysis of Datadog Inc’s days of sales outstanding (DSO) over the specified period indicates notable fluctuations and trends.

Initially, the DSO was relatively high, reaching approximately 94.20 days as of June 30, 2020. This figure reflects the average number of days it took the company to collect receivables during that period. Over subsequent quarters, the DSO exhibited volatility, decreasing to around 81.85 days by September 30, 2020, and then rising again to a peak of approximately 98.81 days by December 31, 2020. During early 2021, the DSO generally ranged between 83.86 and 95.38 days, suggesting some inconsistency in collection periods.

From mid-2021 through 2022, a discernible downward trend in DSO emerged. The figure declined from approximately 89.94 days on June 30, 2021, to roughly 81.64 days as of June 30, 2022, indicating improved receivables collection efficiency. Throughout this period, the DSO remained relatively stable with minor fluctuations, averaging around the low 80s days.

In 2023, the DSO demonstrated further reduction, reaching a low point of approximately 64.09 days on March 31, 2023, which suggests a significant improvement in collection speed. Subsequently, the DSO increased again to about 87.34 days by the end of December 2023, signaling a slight slowdown in receivables turnover. In the early part of 2024, the DSO displayed some variability, with values around 72.92 days as of March 31, 2024, and increasing to approximately 81.44 days by December 31, 2024. The latest available data for March 31, 2025, indicates a DSO of approximately 63.12 days, reflecting a substantial reduction and possible enhancement in receivables management.

Overall, the trend reflects periods of both expansion and contraction in the receivables collection cycle. The significant decrease observed in early 2023 suggests improvements in billing and collections processes, though the subsequent increase hints at possible changes in customer payment behavior or credit policies. The fluctuations over the period highlight the dynamic nature of Datadog’s receivables management, with recent data favoring shorter collection periods compared to earlier years.