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Sankey diagram of Datadog, Inc.. A complete text table follows the diagram.
The cloud-observability platform converts software usage into a 79% gross margin, then reinvests almost all of it in R&D and customer acquisition.
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All flows are reported filing values. Platform capabilities are described qualitatively because the 10-Q does not report product-level revenue. Stock compensation is embedded in the functional expense lines and called out only in an annotation.
Labels and narrative explain the filing. A category marked “arithmetic bridge” or “residual” is calculated from reported totals, rather than a separately reported line.
| Category | Stage | Value | Notes |
|---|---|---|---|
| Observability & security platform | 1 | $1.0B | Cloud usage and subscriptions |
| Gross profit | 2 | $797M | 79.2% gross margin |
| Cloud delivery cost | 2 | $209M | Hosting, support and operations |
| Operating income | 3 | $7.3M | 0.7% operating margin |
| Research & development | 3 | $435M | 43.3% of revenue |
| Sales & marketing | 3 | $280M | 27.8% of revenue |
| General & administrative | 3 | $74.8M | 7.4% of revenue |
| Net interest & other income | 3 | $51.6M | Yield on $4.76B cash and securities |
| Income before tax | 4 | $58.9M | Most comes from non-operating income |
| Net income | 5 | $52.6M | 5.2% net margin |
| Income tax | 5 | $6.4M | 10.8% effective rate |
| From | To | Value |
|---|---|---|
| Observability & security platform | Gross profit | $797M |
| Observability & security platform | Cloud delivery cost | $209M |
| Gross profit | Operating income | $7.3M |
| Gross profit | Research & development | $435M |
| Gross profit | Sales & marketing | $280M |
| Gross profit | General & administrative | $74.8M |
| Operating income | Income before tax | $7.3M |
| Net interest & other income | Income before tax | $51.6M |
| Income before tax | Net income | $52.6M |
| Income before tax | Income tax | $6.4M |