Filing Flows › Datadog (DDOG) › Q1 2025
Datadog (DDOG) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Datadog (DDOG) reported revenue of $762M for the first quarter 2025 (Q1 2025), +25% from a year earlier and +3% from the quarter before. Operating margin was -1.6%, net earnings $24.6M (3.2% of revenue).
Datadog, Q1 2025: revenue $762M (+25% year over year), operating margin -1.6%, net earnings $24.6M, operating cash flow $272M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $762M | +3% | +25% |
| Operating profit | −$12.4M | — | — |
| Net earnings | $24.6M | — | — |
| Operating cash flow | $272M | +2% | +28% |
| Free cash flow | $244M | — | — |
What changed
Revenue was $761.6M in Q1 2025, up 25% year over year and up 3% from the previous quarter.
Gross margin was 79.3%, down 2.7 points from a year earlier. Operating costs exceeded revenue by $12.4M, an operating margin of -1.6%. Operating expenses grew 26% against revenue growth of 25%. The fastest-growing cost line was General & admin (+35%). Net earnings were $24.6M, down 42% year over year. The effective tax rate was 22.5%. Non-operating items added $44.2M, 139% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $271.5M (up 28% year over year), 1102% of net earnings. Non-cash charges added back $11.3M of depreciation and amortization and $164.3M of share-based compensation. Working capital and other items added $71.4M. After capitalized software development costs ($18.4M) and purchases of property and equipment ($8.7M), free cash flow as the company reports it was $244.4M.
Questions
What was Datadog's revenue in the first quarter 2025?
Datadog (DDOG) reported revenue of $762M for the first quarter 2025 (Q1 2025), +25% from a year earlier and +3% from the quarter before.
Was Datadog profitable in the first quarter 2025?
Operating loss was $12.4M (-1.6% of revenue) and net earnings $24.6M.
Source: Datadog 10-Q on SEC EDGAR.