Datadog Inc (DDOG)

Number of days of payables

		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
Payables turnover		5.72	4.79	5.18	3.81	6.54	4.68	4.71	8.16	8.95	14.77	11.48	6.02	14.07	9.27	6.00	6.10	12.46	6.10	5.43	5.80
Number of days of payables	days	63.79	76.21	70.43	95.71	55.83	78.06	77.54	44.71	40.79	24.71	31.79	60.63	25.95	39.38	60.83	59.79	29.28	59.83	67.25	62.98

March 31, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.72
= 63.79

The analysis of Datadog Inc.'s number of days of payables over the period from June 2020 to March 2025 reveals notable variability and emerging trends. In mid-2020, the days payable ranged from approximately 59.83 days to 67.25 days, indicating a relatively conservative approach to settling liabilities. A decline is observed by March 2021, with days decreasing to approximately 29.28 days, suggesting an acceleration in payments or improved payable management.

Subsequently, the number of days fluctuated within a mid-range, with notable decreases at the end of 2021 and early 2022, reaching as low as approximately 24.71 days by December 2022. This decline may reflect tighter cash management or favoring quicker payables settlement. Conversely, the first half of 2023 shows an increase to around 44.71 days, indicating a possible shift towards lengthening payment terms.

Beginning in September 2023, a significant escalation is apparent, with the days of payables jumping to approximately 77.54 days and slightly increasing again to 78.06 days in December 2023. This upward movement continues into early 2024, peaking at 95.71 days in June 2024, before moderating somewhat to around 70.43 days in September 2024 and 76.21 days in December 2024. The latest data point from March 2025 shows a further decrease to 63.79 days.

Overall, the progression indicates periods of both tightening and loosening of the company’s payables management. The recent trend toward extended payable periods suggests a strategic move to optimize cash flow, potentially negotiating longer payment terms or delaying settlements. The cyclical nature of these fluctuations reflects operational, strategic, or market-specific factors influencing Datadog's approach to managing its liabilities.