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Datadog Inc Class A DDOG

Morningstar Rating
$117.57 +1.49 (1.28%)
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Company Report

Datadog Earnings: We Like Datadog Barking Up the Enterprise Tree as Upselling Motion Remains Strong

We are maintaining our $115 fair value estimate for shares of narrow-moat Datadog after the firm reported a strong start to fiscal 2024 with a set of robust financial results. As the tough macro of recent quarters gradually fades, we anticipate Datadog to find greater success upselling its existing customers as well as landing new ones. As a firm operating on a consumption-based pricing model, Datadog’s financials tend to react sharply to changes in customer demand. From a valuation perspective, after dropping sharply following the earnings report, we view Datadog as fairly valued.

Price vs Fair Value

DDOG is trading at a 587% premium.
Price
$117.57
Fair Value
$458.00
Uncertainty
Very High
1-Star Price
$664.32
5-Star Price
$52.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Datadog has strong secular tailwinds as the FSMA market is expected to grow rapidly.

Bears

Datadog's product portfolio currently lacks the comprehensiveness of Splunk's platform, leading to lost sales when the two go head-to-head in the enterprise space.

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News

Trading Information

Previous Close Price
$116.08
Day Range
$115.93117.95
52-Week Range
$77.81138.61
Bid/Ask
$117.18 / $117.76
Market Cap
$39.33 Bil
Volume/Avg
5.0 Mil / 3.8 Mil

Key Statistics

Price/Earnings (Normalized)
65.32
Price/Sales
18.72
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Datadog is a cloud-native company that focuses on analyzing machine data. The firm's product portfolio, delivered via software as a service, allows a client to monitor and analyze its entire IT infrastructure. Datadog's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to utilize it for a variety of applications throughout their businesses.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
5,200

Competitors

Valuation

Metric
DDOG
ESTC
CSCO
Price/Earnings (Normalized)
65.3291.4411.82
Price/Book Value
17.8315.004.17
Price/Sales
18.728.933.48
Price/Cash Flow
60.2861.0511.77
Price/Earnings
DDOG
ESTC
CSCO

Financial Strength

Metric
DDOG
ESTC
CSCO
Quick Ratio
3.321.620.68
Current Ratio
3.431.760.89
Interest Coverage
2.02−3.7019.46
Quick Ratio
DDOG
ESTC
CSCO

Profitability

Metric
DDOG
ESTC
CSCO
Return on Assets (Normalized)
16.52%6.50%15.60%
Return on Equity (Normalized)
32.47%22.78%36.40%
Return on Invested Capital (Normalized)
18.04%12.59%26.89%
Return on Assets
DDOG
ESTC
CSCO
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