Datadog Inc (DDOG)

Net profit margin

		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
Net income (ttm)	US$ in thousands	165,757	183,746	192,145	163,078	115,285	48,568	-34,459	-83,074	-83,984	-50,160	-13,957	6,544	2,061	-20,745	-44,074	-53,740	-44,094	-24,547	-7,496	3,493
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
Net profit margin		5.85%	6.85%	7.58%	6.81%	5.11%	2.28%	-1.72%	-4.38%	-4.68%	-2.99%	-0.91%	0.48%	0.17%	-2.02%	-5.01%	-7.03%	-6.57%	-4.07%	-1.39%	0.73%

March 31, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $165,757K ÷ $2,834,575K
= 5.85%

The net profit margin of Datadog Inc over the observed period demonstrates notable fluctuations, reflecting evolving profitability dynamics. The data indicates that in the earliest recorded quarter of June 30, 2020, the company achieved a modest positive net profit margin of 0.73%. However, this was followed by a period of decline, with margins turning negative by September 30, 2020, at -1.39%, and further deteriorating through December 31, 2020, to -4.07%. The negative trend persisted into the subsequent quarters of 2021, reaching a low of -7.03% as of June 30, 2021.

Throughout 2021, the net profit margin exhibited signs of improvement, narrowing to -5.01% in September and further to -2.02% by December 31, 2021. This upward movement continued into 2022, with margins turning positive for the first time since 2020, registering 0.17% in March and reaching 0.48% by June. However, this positive momentum was short-lived, as margins reverted to negative territory later that year, dipping to -0.91% in September and -2.99% in December 2022.

In 2023, the company experienced continued volatility, with margins deteriorating to -4.68% in March and -4.38% in June, before modest improvement to -1.72% by September. A significant turnaround occurred toward the end of 2023 and into 2024, with margins turning positive, reaching 2.28% in December 2023, and further ascending to 5.11% in March 2024, and then to 6.81% in June 2024. The trend persisted into September 2024, with a net profit margin of 7.58%, and remained positive through December 2024 at 6.85%.

By March 2025, the net profit margin was recorded at 5.85%, indicating sustained profitability and an overall positive trend in recent periods. The data reflects a transition from initial profitability with occasional losses to progressively improving profits, particularly from late 2023 onwards, suggesting a robust recovery and effective operational performance in recent quarters.