Datadog Inc (DDOG)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 6,010,380 | 5,785,340 | 4,631,470 | 4,412,390 | 4,141,470 | 3,936,070 | 3,543,300 | 3,312,170 | 3,139,740 | 3,004,850 | 2,797,600 | 2,654,490 | 2,529,020 | 2,380,790 | 2,194,170 | 2,076,730 | 1,952,070 | 1,890,280 | 1,814,280 | 1,783,710 |
| Operating ROA | 0.50% | 0.94% | 1.57% | 1.09% | 0.33% | -0.85% | -2.70% | -3.71% | -3.07% | -1.51% | -0.08% | 0.91% | 0.39% | -0.80% | -1.67% | -1.97% | -1.56% | -0.73% | -0.39% | -0.12% |
March 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $29,868K ÷ $6,010,380K
= 0.50%
The operating return on assets (ROA) for Datadog Inc. demonstrates a discernible trend of initial negative values transitioning toward positive territory over the analyzed period. From June 30, 2020, through March 31, 2021, the company exhibited negative operating ROA figures, with values ranging from -0.12% to -1.56%, indicating that operating income was insufficient to generate positive returns relative to its assets, possibly reflecting early-stage operational challenges or investment phases.
In the subsequent period ending December 31, 2021, the negative trend persisted, albeit with somewhat reduced severity, as the ROA approached closer to zero, reaching -0.80%. A notable turnaround was observed by March 31, 2022, when the ROA turned positive at 0.39%, suggesting improved efficiency in generating operating income relative to assets. This positive momentum continued, with the ROA increasing to 0.91% by June 30, 2022, before fluctuating slightly into negative territory at -0.08% by September 30, 2022, and further declining to -1.51% at the end of 2022.
The first quarter of 2023 marked a significant deterioration, with operating ROA plunging to -3.07%, then deepening further through June and September 2023 to -3.71% and -2.70%, respectively. These figures reflect periods of operational strains or possible investment expenditures outweighing income.
However, a notable recovery commenced in the final quarter of 2023, with the ROA rising to -0.85%. This upward trend persisted into early 2024, with the ROA crossing into positive territory at 0.33% in the first quarter. The momentum continued through the subsequent quarters, reaching 1.09% in June 2024, 1.57% in September 2024, and 0.94% at the end of December 2024. The series concludes with a moderate positive value of 0.50% in the first quarter of 2025.
Overall, the data indicates that Datadog Inc. experienced a period of negative operating ROA from mid-2020 through early 2023, characterized by operational challenges or investments impacting efficiency. Starting in late 2023 and into 2024, there is evidence of a recovery, ultimately resulting in positive operating ROA figures, implying improved operational profitability relative to assets. This improvement may reflect successful strategic adjustments, increased operational efficiency, or favorable market conditions.
Peer comparison
Mar 31, 2025