Datadog, Inc. stock research
FY2023 Q1
Datadog (DDOG) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit increased compared to both the previous quarter and the same quarter last year. Cost of revenue also rose, resulting in a gross margin that was slightly lower than both prior periods.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit increased compared to both the previous quarter and the same quarter last year. Cost of revenue also rose, resulting in a gross margin that was slightly lower than both prior periods.
- Revenue growth drove the increase in gross profit, while cost of revenue increased at a similar pace, keeping gross margin relatively stable.
- Sequentially, revenue and gross profit were higher while gross margin was marginally weaker. Year over year, the same pattern held with revenue and gross profit up and gross margin slightly decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.3%
Gross profit
$381.8M
Revenue
$481.7M
Cost of revenue
$99.9M
Quarter-over-quarter change
n/a
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $481.7M | $381.8M | $99.9M | 79.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth drove the increase in gross profit, while cost of revenue increased at a similar pace, keeping gross margin relatively stable.
Sequentially, revenue and gross profit were higher while gross margin was marginally weaker. Year over year, the same pattern held with revenue and gross profit up and gross margin slightly decreased.
Monitor customer usage growth and broader economic conditions, as slower usage growth noted in the filing may pressure revenue.