Datadog, Inc. stock research
FY2024 Q2
Datadog (DDOG) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit increased compared to both the previous quarter and the same quarter last year. Gross margin slightly weakened from the prior quarter but improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit increased compared to both the previous quarter and the same quarter last year. Gross margin slightly weakened from the prior quarter but improved relative to the year-ago period.
- The modest sequential decline in gross margin resulted from cost of revenue growing at a faster pace than revenue. Compared to a year ago, gross margin benefited from revenue growth outpacing cost growth.
- Gross margin decreased sequentially from the prior quarter but increased compared to the same quarter last year. Revenue and gross profit both showed growth over both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.9%
Gross profit
$521.8M
Revenue
$645.3M
Cost of revenue
$123.5M
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+0.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $645.3M | $521.8M | $123.5M | 80.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-1.1 pts
Year-over-year change
Jun 30, 2023
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The modest sequential decline in gross margin resulted from cost of revenue growing at a faster pace than revenue. Compared to a year ago, gross margin benefited from revenue growth outpacing cost growth.
Gross margin decreased sequentially from the prior quarter but increased compared to the same quarter last year. Revenue and gross profit both showed growth over both periods.
Monitor customer usage growth trends, as slower usage may indicate headwinds for future revenue and margin.