Datadog (DDOG) FY2023 results: revenue $2.1 billion, up 27.1% on the year

Datadog, Inc. (DDOG) reported revenue of $2.1 billion for fiscal 2023, the year ended 31 December 2023, up 27.1% on the year before. Net income was $49 million, and diluted earnings per share $0.14. The figures are the company's own, from the 10-K it filed with the SEC on 23 February 2024.

Revenue

$2.1 billion

+27.1% on the year

FY2017FY2023

Operating margin

-1.6%

-3.5% a year earlier

FY2017FY2023

Net income

$49 million

FY2017FY2023

Diluted EPS

$0.14

FY2017FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	2,128	1,675	1,029	+27.1%
Cost of revenue	410	347	234	+18.2%
Gross profit	1,718	1,328	795	+29.4%
Gross margin	80.7%	79.3%	77.2%
Research and development	962	752	420	+27.9%
Operating income	-33.5	-58.7	-19.2
Operating margin	-1.6%	-3.5%	-1.9%
Interest expense	6.3	16.5	21.1	-61.9%
Pre-tax income	60.2	-38.1	-18.4
Income tax	11.7	12.1	2.3	-3.5%
Effective tax rate	19.4%	n/a	n/a
Net income	48.6	-50.2	-20.7
Net margin	2.3%	-3.0%	-2.0%
Diluted EPS	$0.14	-$0.16	-$0.07

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	660	418	287	+57.7%
Capital expenditure	27.6	35.3	10.0	-21.8%
Free cash flow	632	383	277	+65.0%
Free cash flow margin	29.7%	22.9%	26.9%
Cash from investing	-731	-385	-274
Cash from financing	58.3	36.0	34.9	+61.8%
Depreciation and amortisation	35.6	27.0	18.5	+31.9%
Share-based compensation	482	363	164	+32.8%
Diluted shares, weighted	350m	315m	309m	+11.1%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	2,025	1,411	1,041	+43.6%
Debt	742	739	735	+0.5%
Operating lease liabilities	138	76.6	52.1	+80.4%
Other liabilities	1,030	779	552	+32.3%
Total liabilities and equity	3,936	3,005	2,381	+31.0%
Fixed assets	172	125	75.2	+37.1%
Goodwill	353	348	292	+1.3%
Intangible assets	9.6	16.4	15.7	-41.2%
Investments	2,253	1,545	1,283	+45.8%
Cash and equivalents	330	339	271	-2.6%
Receivables	509	400	269	+27.5%
Other assets	310	231	174	+34.1%
Total assets	3,936	3,005	2,381	+31.0%

10-K for the year ended 31 December 2023, filed 23 February 2024: the filing.