DDOG · Earnings call · 2026Q2T · Full report
Gross Margin Drivers
Datadog, Inc. · 2026-08-06 · Importance 43 · Surprise 32 · No source text
Q2 gross profit was $892 million, producing a non-GAAP gross margin of 79.6%. Gross margin declined from 80.2% in Q1 and 80.9% in the year-ago quarter. Management attributed quarterly variability to investments in customer-facing innovation, partly offset by efficiency initiatives, and continued to expect gross margin around 80% plus or minus.
Key facts
- Q2 gross profit: $892 million for gross margin of 79.6% (compared to 80.2% last quarter and 80.9% year-ago quarter) and expectation gross margin historically in the 80% plus or minus range
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | negative | realized | -0.6% | Q2 gross profit: $892 million for gross margin of 79.6% (compared to 80.2% last quarter and 80.9% year-ago quarter) and expectation gross… |