Datadog, Inc. (NASDAQ:DDOG) is expected to break even in the near future
We think it’s a good time to analyze Datadog, Inc. (NASDAQ: DDOG) As it seems, the company may be on the verge of a huge achievement. Datadog, Inc. provides a monitoring and analytics platform for developers, IT operations teams, and cloud business users in North America and internationally. With the last loss of $25 million in the fiscal year and a loss of $44 million in the last twelve months, the $39 billion market capitalization company has magnified its loss by moving further away from its balance goal. Since the path to profitability is what Datadog investors are concerned about, we decided to gauge market sentiment. We’ve put together a brief overview of industry analysts’ expectations for the company, its breakeven year and its implied growth rate.
Check out our latest analysis for Datadog
Datadog is near balance, according to 20 analysts at American Software. They expect the business to make a terminal loss in 2022, before making a profit of US$19 million in 2023. Therefore, the business is expected to break even in just over a year to from today. In order to meet this balance date, we have calculated the rate at which the company must grow from one year to the next. It turns out that an average annual growth rate of 81% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
Since this is a high-level preview, we won’t go into details about Datadog’s upcoming projects, but keep in mind that a high growth rate is generally not unusual. , especially when a company is in a period of investment.
One thing we would like to highlight with Datadog is its relatively high level of debt. Generally, the rule of thumb is that debt should not exceed 40% of your equity, which in Datadog’s case is 77%. Note that higher debt increases the risk of investing in the loss-making company.
There are too many aspects of Datadog to cover in a brief article, but the company fundamentals can all be found in one place – Datadog’s company page on Simply Wall St. We’ve also compiled a list of relevant aspects that you should further examine:
- Evaluation: What is Datadog worth today? Has future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Datadog is currently undervalued by the market.
- Management team: An experienced management team at the helm bolsters our confidence in the company – look at who sits on Datadog’s board and the CEO’s journey.
- Other High Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.