Datadog Inc (DDOG)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	2,834,575	2,684,275	2,536,197	2,393,717	2,257,898	2,128,359	2,008,109	1,897,106	1,793,784	1,675,100	1,531,899	1,365,854	1,193,265	1,028,784	880,117	764,304	670,767	603,466	539,579	480,768
Receivables	US$ in thousands	490,172	598,919	487,064	533,292	451,057	509,279	400,649	333,102	367,046	399,551	348,830	305,501	275,342	268,824	224,602	188,326	154,111	163,359	120,992	124,078
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

March 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,834,575K ÷ $490,172K
= 5.78

The receivables turnover ratio for Datadog Inc. demonstrates a generally positive trend over the period analyzed, reflecting the company's efficiency in collecting accounts receivable. Starting from a ratio of 3.87 on June 30, 2020, the metric experienced fluctuations but showed an overall upward trajectory, reaching a peak of approximately 5.78 by March 31, 2025.

Specifically, following a slight increase from 3.87 in mid-2020 to 4.46 by September 2020, there was some variability through 2020 and 2021, with ratios mostly remaining within the range of approximately 3.69 to 4.35. This indicates periods of somewhat slower receivable collection relative to revenue.

From mid-2021 onward, the ratio demonstrated more sustained improvement, rising consistently and reaching above 5.0 by March 2023. This upward movement suggests enhanced efficiency in receivables management and potentially shorter collection periods. Notably, the ratio reached its highest point of 5.78 in March 2025, reflecting a significant improvement in receivables collection relative to sales, as compared to earlier periods.

Throughout the observed timeline, the receivables turnover ratio exhibits some cyclical fluctuations but maintains an overall positive momentum, indicating that Datadog Inc. has been progressively improving its collection efficiency over time. This trend is indicative of potentially stronger cash flow management, better credit management practices, or changes in customer payment behaviors, all contributing to the company's financial operations.