Datadog, Inc. — Earnings Quality Grade F
DDOG · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 79 days, change -2 days YoY
AR growth 23.8% vs revenue growth 27.7%
Revenue 27.7%, CFFO 20.6%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 41.8% vs revenue 27.7%. Normal
SG&A/Gross Profit = 45.1%. Normal
Gross margin 80.0%, change -0.8pp. Stable
Cash Flow Quality
CFFO/NI = 9.75. Profits backed by cash
FCF $0.9B, FCF/NI = 8.49
Accruals ratio = -14.2%. Low accruals
Cash $4.5B covers debt $1.3B
Balance Sheet Health
Goodwill+Intangibles $0.5B = 15% of equity. Manageable
Debt/EBITDA = 6.6x (>4x). Interest coverage = -4.0x (<2x). Financial stress
Other assets 51.8% vs revenue 27.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 50% YoY
Manipulation Score
M-Score = -2.69 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08