Datadog Inc (DDOG)

Operating 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
Operating income (ttm)	US$ in thousands	29,868	54,284	72,634	48,126	13,502	-33,464	-95,834	-122,946	-96,410	-45,339	-2,256	24,191	9,775	-19,156	-36,549	-40,921	-30,381	-13,773	-7,101	-2,052
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
Operating profit margin		1.05%	2.02%	2.86%	2.01%	0.60%	-1.57%	-4.77%	-6.48%	-5.37%	-2.71%	-0.15%	1.77%	0.82%	-1.86%	-4.15%	-5.35%	-4.53%	-2.28%	-1.32%	-0.43%

March 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $29,868K ÷ $2,834,575K
= 1.05%

The operating profit margin of Datadog Inc. has demonstrated considerable volatility over the period analyzed. Initially, as of June 30, 2020, the company operated at a slight operating loss of -0.43%. This negative margin persisted through the subsequent quarters, reaching its most negative point at -5.37% as of March 31, 2023. During this period, the company’s operating profit margin fluctuated within the range of approximately -0.15% to -6.48%, reflecting ongoing challenges in achieving operational profitability.

However, starting in the quarter ending June 30, 2024, a notable turnaround is observed. The operating profit margin shifts into positive territory, reaching 0.60% and then improving further to 2.01% as of June 30, 2024, with subsequent figures maintaining above zero at 2.86% for September 2024 and 2.02% for December 2024. These figures indicate a significant improvement in operational efficiency and profitability, suggesting that the company has moved from consistent operating losses to sustained operational margins in the positive range.

Overall, the trajectory indicates a transition from persistent negative operating profit margins in the earlier periods to a more stable and improving profitability trend in the recent quarters. This shift reflects a positive development in the company’s core operational performance, potentially driven by improved revenue growth, cost management, or operational efficiencies.