DDOG · 8-K · 20260806PR053829
Gross Margin Drivers
Datadog, Inc. · 2026-08-06 · Importance 64 · Surprise 56 · No source text
Second-quarter GAAP gross profit increased to $881.3 million from $660.8 million, while GAAP gross margin declined to 79% from 80%. Non-GAAP gross profit rose to $892.3 million from $669.2 million, and non-GAAP gross margin declined to 80% from 81%. Cost of revenue increased 45% year over year to $240.1 million, outpacing the 36% revenue increase.
Key facts
- GAAP gross profit for the three months ended June 30, 2026 was $881,341 thousand and GAAP gross margin was 79% for the three months ended June 30, 2026. source
- Non-GAAP gross profit for the three months ended June 30, 2026 was $892,299 thousand and non-GAAP gross margin was 80% for the three months ended June 30, 2026. source
- Cost of revenue for the three months ended June 30, 2026 was $240,113 thousand. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | unclear | realized | — | GAAP gross profit for the three months ended June 30, 2026 was $881,341 thousand and GAAP gross margin was 79% for the three months ended… |
| margin | unclear | realized | — | Non-GAAP gross profit for the three months ended June 30, 2026 was $892,299 thousand and non-GAAP gross margin was 80% for the three… |