Datadog Stock Fair Value Calculation – DATADOG Reports 25.4% YOY Revenue Increase of USD 509.5 Million in Q2 FY2023
August 12, 2023
☀️Earnings Overview
For the quarter ending June 30 2023, DATADOG ($NASDAQ:DDOG) reported a total revenue of USD 509.5 million, indicating a 25.4% year-over-year increase. Net income for the same period was also in positive territory with a figure of USD -4.0 million, showing a marked improvement from the prior year’s net loss of -4.9 million.
Analysis – Datadog Stock Fair Value Calculation
GoodWhale has conducted an analysis of DATADOG‘s finances and have concluded that the fair value of DATADOG share is around $188.6, as determined by our proprietary Valuation Line. This means that the current price of DATADOG stocks at $88.0 is massively undervalued, by a whopping 53.3%. This provides an incredible opportunity to purchase DATADOG stocks at a highly discounted rate. With such an attractive offer, investors should take advantage of this opportunity as soon as possible. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Datadog. DATADOG_Reports_25.4_YOY_Revenue_Increase_of_USD_509.5_Million_in_Q2_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 1.9k | -83.07 | -4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Datadog. DATADOG_Reports_25.4_YOY_Revenue_Increase_of_USD_509.5_Million_in_Q2_FY2023″>More…
| Operations | Investing | Financing |
| 485 | -481.08 | 43.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Datadog. DATADOG_Reports_25.4_YOY_Revenue_Increase_of_USD_509.5_Million_in_Q2_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.31k | 1.66k | 5.12 |
Key Ratios Snapshot
Some of the financial key ratios for Datadog are shown below. DATADOG_Reports_25.4_YOY_Revenue_Increase_of_USD_509.5_Million_in_Q2_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 58.0% | – | -3.2% |
| FCF Margin | ROE | ROA |
| 22.2% | -2.4% | -1.1% |
Peers
Datadog Inc is a cloud-based monitoring and analytics platform for IT, Operations and Development teams who write and run applications at scale, and is used by organizations of all sizes. Founded in 2010, Datadog is headquartered in New York City with offices in France, Germany, and the United Kingdom.
Datadog’s primary competitors are Dynatrace Inc, Elastic NV, and New Relic Inc. These companies are also cloud-based monitoring and analytics platforms that provide similar services to Datadog.
– Dynatrace Inc ($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 DATADOG reporting record total revenue of USD 509.5 million in the second quarter of FY2023, ending June 30 2023 — a 25.4% increase from the same quarter last year — their net income was still in the negative, at -4.0 million, a slight improvement from the prior year’s -4.9 million. This caused the stock price to decrease the same day. Investors may be hesitant to invest in such a company that still has negative net income despite its impressive revenue growth.
