Datadog, Inc. stock research
FY2023 Q3
Datadog (DDOG) Gross Margin — Quarter Ended Sep 30, 2023
Revenue, gross profit, and cost of revenue each rose sequentially and year-over-year. Gross margin improved compared to both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue each rose sequentially and year-over-year. Gross margin improved compared to both the prior quarter and the same quarter last year.
- Gross profit grew more than cost of revenue on a relative basis, allowing gross margin to expand despite a larger cost base.
- Compared with the immediately preceding quarter, gross margin was higher. Compared with the same quarter one year earlier, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.1%
Gross profit
$444.2M
Revenue
$547.5M
Cost of revenue
$103.3M
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+2.6 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% |
| Jun 30, 2023 | $509.5M | $407.6M | $101.8M | 80.0% |
| Sep 30, 2023 | $547.5M | $444.2M | $103.3M | 81.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.1 pts
Year-over-year change
Sep 30, 2022
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than cost of revenue on a relative basis, allowing gross margin to expand despite a larger cost base.
Compared with the immediately preceding quarter, gross margin was higher. Compared with the same quarter one year earlier, gross margin was also higher.
Monitor the growth rate of cost of revenue relative to revenue, as any shift could affect gross margin stability.