DATADOG Reports 25.4% Increase in Revenue for Q2 FY2023, Totaling USD 509.5 Million
August 19, 2023
☀️Earnings Overview
For the second quarter of its Fiscal Year 2023 ending June 30, 2023, DATADOG ($NASDAQ:DDOG) reported total revenue of USD 509.5 million, a 25.4% increase year-on-year. Net income, however, decreased from its previous year’s result of -4.9 million to -4.0 million.
Analysis
GoodWhale has conducted an in-depth analysis of DATADOG‘s wellbeing and provided a comprehensive risk rating. According to their findings, DATADOG is a medium risk investment in terms of financial and business aspects. GoodWhale has identified three risk warnings when examining DATADOG’s income sheet, balance sheet, and cash flow statement. These risk signals indicate potential problems that could affect the company’s ability to continue operations. To access the full details of GoodWhale’s analysis, users must become a registered user. Investing in DATADOG is not recommended without a thorough examination of the risks associated with the company. By registering with GoodWhale, users can have access to the latest information on DATADOG and make an informed decision about their investments. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Datadog. More…
| Total Revenues | Net Income | Net Margin |
| 1.9k | -83.07 | -4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Datadog. More…
| Operations | Investing | Financing |
| 485 | -481.08 | 43.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Datadog. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.31k | 1.66k | 5.12 |
Key Ratios Snapshot
Some of the financial key ratios for Datadog are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 58.0% | – | -3.2% |
| FCF Margin | ROE | ROA |
| 22.2% | -2.4% | -1.1% |
Peers
Datadog Inc is a cloud-based monitoring and analytics platform for IT, Operations and Development teams who write and run applications at scale, and is used by organizations of all sizes. Founded in 2010, Datadog is headquartered in New York City with offices in France, Germany, and the United Kingdom.
Datadog’s primary competitors are Dynatrace Inc, Elastic NV, and New Relic Inc. These companies are also cloud-based monitoring and analytics platforms that provide similar services to Datadog.
– Dynatrace Inc ($NYSE:DT)
Dynatrace Inc is a publicly traded American software intelligence company based in Waltham, Massachusetts with a market cap of $9.67B as of 2022. The company offers various application performance management (APM) products. Its products are used by companies to monitor the performance of software applications and services.
Dynatrace’s ROE of 3.59% is lower than the average of its competitors, which is around 7%. This indicates that the company is not generating as much profit from its equity as its competitors. One reason for this could be that Dynatrace is reinvesting its profits back into the business in order to grow. Another reason could be that the company has higher operating expenses than its competitors.
– Elastic NV ($NYSE:ESTC)
Elastic N.V. is a Netherlands-based company engaged in the provision of software solutions. The Company’s products include Elastic Stack, X-Pack, and Elastic Cloud. The Elastic Stack is a set of software products that combine data from any source with any format and search, analyze, and visualize it in real time. X-Pack is a set of software products that provides security, alerting, monitoring, reporting, machine learning, and graph capabilities for Elastic Stack. Elastic Cloud is a cloud service that offers hosted versions of the Elastic Stack.
– New Relic Inc ($NYSE:NEWR)
New Relic Inc is a publicly traded American software analytics company based in San Francisco, California. The company’s market cap as of 2022 was 3.84 billion dollars, and its ROE was -41.23%. New Relic was founded in 2008, and it provides software analytics products that help developers monitor the performance of their applications.
Summary
Despite impressive total revenue growth of 25.4%, Datadog reported a net loss of $4.0 million in the second quarter of its Fiscal Year 2023. This was a slight decrease from the net loss of $4.9 million reported in the same period last year. The stock price of Datadog moved downward on the same day, suggesting that investors are concerned about the company’s financial results and prospects for future growth. Given these numbers, investors should carefully consider Datadog’s financial performance and outlook when deciding whether to invest in the company.
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