Datadog, Inc. stock research
FY2024 Q1
Datadog (DDOG) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased from both the prior quarter and the same quarter last year. Gross profit also rose, while cost of revenue grew at a slower pace year-over-year but slightly faster sequentially, resulting in a gross margin that was higher year-over-year but slightly lower than the prior quarter.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased from both the prior quarter and the same quarter last year. Gross profit also rose, while cost of revenue grew at a slower pace year-over-year but slightly faster sequentially, resulting in a gross margin that was higher year-over-year but slightly lower than the prior quarter.
- The strongest observable driver of gross margin was the relative growth rates of revenue and cost of revenue. Year-over-year, revenue growth outpaced cost growth, expanding margin; sequentially, cost growth slightly exceeded revenue growth, narrowing margin.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.0%
Gross profit
$501.2M
Revenue
$611.3M
Cost of revenue
$110.1M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+2.7 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $611.3M | $501.2M | $110.1M | 82.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.2 pts
Year-over-year change
Mar 31, 2023
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin was the relative growth rates of revenue and cost of revenue. Year-over-year, revenue growth outpaced cost growth, expanding margin; sequentially, cost growth slightly exceeded revenue growth, narrowing margin.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Monitor the impact of macroeconomic uncertainty on customer usage growth, as the filing notes slower usage growth from existing customers in recent quarters.