Datadog, Inc. stock research
FY2023 Q4
Datadog (DDOG) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. The gross margin strengthened, reflecting a larger proportion of revenue retained as gross profit.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. The gross margin strengthened, reflecting a larger proportion of revenue retained as gross profit.
- The gross margin expansion was driven by gross profit increasing by a larger amount than cost of revenue, resulting in a higher gross margin percentage.
- Compared to the immediately preceding quarter, gross margin improved from the prior period's level. Compared to the same quarter one year earlier, gross margin also showed an improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.2%
Gross profit
$484.8M
Revenue
$589.6M
Cost of revenue
$104.8M
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+2.8 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% |
| Dec 31, 2023 | $589.6M | $484.8M | $104.8M | 82.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.1 pts
Year-over-year change
Dec 31, 2022
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin expansion was driven by gross profit increasing by a larger amount than cost of revenue, resulting in a higher gross margin percentage.
Compared to the immediately preceding quarter, gross margin improved from the prior period's level. Compared to the same quarter one year earlier, gross margin also showed an improvement.
Monitor the trajectory of customer usage growth, as the filing noted slower usage growth from existing customers in recent quarters.