DDOG earnings analysis
What we found in DDOG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Datadog reported strong Q1 2026 results with revenues of $1,006 million, a 32% increase year-over-year, and an EPS of $0.60, beating expectations. Management anticipates continued growth, driven by customer expansion and product adoption across sectors, despite potential macroeconomic challenges.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Datadog's revenue increased 32% from $761.6M in Q1 2025 to $1,006.4M in Q1 2026.
- Exceeded EPS Estimates
- EPS for Q1 2026 was reported at $0.60, beating estimates of $0.42.
- Robust Operating Cash Flow
- Operating cash flow rose from $271.5M in Q1 2025 to $334.6M in Q1 2026.
- Significant Free Cash Flow
- Free cash flow increased to $289.1M from $244.4M year-on-year.
- Increase in High-Value Customers
- The number of customers with annual run-rate revenue of $100,000 or more rose to 4,550, up from 3,770 a year ago.
- Solid Market Position
- Datadog maintains a trailing dollar-based net retention rate in the low-120%'s, improved from high-110%'s in the previous year.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Macroeconomic Exposure
- Management warns that unfavorable economic conditions could affect growth, especially regarding IT spending.
- History of Operating Losses
- Despite profitability in Q1 2026, there is a history of operating losses, raising concerns over sustained profitability.
- Competition Risks
- Increased competition from larger firms with more resources could threaten market position and pricing strategies.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.6
- Gross margin
- 79%
- Operating margin
- 0.0073%
What they said about what is next.
Management expects Q2 revenue in the range of $1.07B to $1.08B and EPS between $0.57 and $0.59.
The filing reads better than the one before it.
What came before.
- 10-K · February 18, 2026
- Datadog reports continued high-growth scale: revenue increased to $3,428.0 million in 2025 (sum of quarterly revenues $762M + $827M + $886M + $953M) with gross margins roughly stable around ~80% (Q4 2025 gross margin…
- 10-Q · August 8, 2025
- Datadog reported quarter revenue of $826,760,000 (up from $645,279,000 a year ago) with gross profit of $660,782,000, but operating expenses rose to $696,282,000 producing an operating loss of $35,500,000 and GAAP…
- 10-Q · August 9, 2024
- Datadog reported Q2 revenue of $645,279 and GAAP net income of $43,824, reversing a year-ago net loss of $(3,969). Gross profit was $521,780 (about 80.9% of revenue) and operating income was $12,618 versus an operating…
- 10-Q · November 7, 2023
- Datadog reported a strong Q3 2023 with revenue of $547.5M (up $111.0M or 25.4% YoY) and GAAP net income of $22.63M (diluted EPS $0.06), reversing a prior-year loss. Gross margin expanded to ~81.1% and operating loss…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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