Datadog Stock Fair Value – DATADOG Reports Third Quarter Earnings Results for FY2023
November 20, 2023
🌥️Earnings Overview
On November 7 2023, DATADOG ($NASDAQ:DDOG) reported their third quarter FY2023 earnings results which ended September 30 2023. During this quarter, the company earned a total revenue of USD 547.5 million, a 25.4% increase from the year prior. Net income also saw a 187.1% growth, amounting to USD 22.6 million.
Market Price
The results were extremely positive, with DATADOG stock opening at $99.0 and closing at $102.2, soaring by 28.5% from the prior closing price of 79.6. Analysts were highly impressed by the performance of the company, as it exceeded both market and internal expectations. The impressive third quarter performance was attributed to several key factors. Lastly, the company also announced a successful implementation of its new software-as-a-service offerings, which allowed it to generate additional revenues.
Overall, these impressive financial results demonstrate the strength and stability of DATADOG’s business model. The company is well positioned to capitalize on the current trends in the market and continue to deliver on its promises to shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Datadog. More…
| Total Revenues | Net Income | Net Margin |
| 2.01k | -34.46 | -1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Datadog. More…
| Operations | Investing | Financing |
| 554.17 | -646.45 | 51.59 |
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 |
| 3.54k | 1.74k | 5.5 |
Key Ratios Snapshot
Some of the financial key ratios for Datadog are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 55.0% | – | -0.7% |
| FCF Margin | ROE | ROA |
| 24.5% | -0.5% | -0.3% |
Analysis – Datadog Stock Fair Value
At GoodWhale, we have carefully analyzed the wellbeing of DATADOG and come to the conclusion that the fair value of a share of DATADOG stock is approximately $177.2. This valuation is based on our proprietary Valuation Line, which takes into account various economic and financial factors, as well as the outlook of the company. At the moment, DATADOG stock is being traded at $102.2, which is a discount of 42.3% compared to the fair value determined by our line. We believe this to be a great opportunity for investors, as it presents an opportunity to purchase shares at a notable discount. More…
Peers
Datadog Inc is a cloud-based monitoring and analytics platform for IT, Operations and Development teams who write and run applications at scale, and is used by organizations of all sizes. Founded in 2010, Datadog is headquartered in New York City with offices in France, Germany, and the United Kingdom.
Datadog’s primary competitors are Dynatrace Inc, Elastic NV, and New Relic Inc. These companies are also cloud-based monitoring and analytics platforms that provide similar services to Datadog.
– Dynatrace Inc ($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
Investors in DATADOG saw positive news on November 7th, 2023 when the company reported its third quarter earnings results for FY 2023. Total revenue increased by 25.4% year-over-year to USD 547.5 million, and net income increased by a substantial 187.1% to USD 22.6 million. On the same day, the company’s stock price moved up, which is indicative of a successful quarter and encouraging sign for investors. Overall, DATADOG presents a strong opportunity for investors as it continues to deliver steady growth and consistent profitability.
