Datadog Inc (DDOG)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	183,746	48,568	-50,160	-20,745	-24,547
Revenue	US$ in thousands	2,684,280	2,128,360	1,675,100	1,028,780	603,466
Net profit margin		6.85%	2.28%	-2.99%	-2.02%	-4.07%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $183,746K ÷ $2,684,280K
= 6.85%

The net profit margin of Datadog Inc. exhibits a notable degree of variation over the period from December 31, 2020, to December 31, 2024. Initially, in 2020, the company reported a negative net profit margin of -4.07%, indicating that the firm incurred losses relative to its revenues during that fiscal year. In 2021, the net profit margin improved, becoming less negative at -2.02%, reflecting a reduction in losses and a potential movement towards profitability. However, by the end of 2022, the net profit margin declined again to -2.99%, suggesting a setback in profitability or an increase in expenses relative to revenues during that year.

Significantly, the trend reverses in 2023, when Datadog reports a positive net profit margin of 2.28%, marking the transition from loss to profit. This shift signifies a meaningful improvement in operational efficiency or revenue generation relative to costs. The positive momentum continues into 2024, with the net profit margin escalating further to 6.85%, indicating increased profitability and effective management of expenses or revenue growth.

Overall, the evolution of Datadog's net profit margin from negative figures to a positive and progressively improving margin demonstrates substantial financial transition and operational progress over the observed period. The trend underscores a successful turnaround and potential stabilization as a profitable enterprise.