DDOG · 10-Q · 2026Q3 · Full report

Operating Expense Trends

Datadog, Inc. · 2026-11-04 · Importance 58 · Surprise 30 · Matches filing data

Q3 2026 sales and marketing expense rose 27% year over year to $303.3 million, driven by $53.9 million of additional personnel and allocated overhead costs, including higher headcount and sales variable compensation, and $8.5 million more in advertising and promotional activities. For the first nine months of 2026, sales and marketing expense increased 29% to $894.6 million, including $164.2 million more in personnel costs and $30.3 million more in advertising, sales, marketing, and promotional activities. Q3 general and administrative expense increased 22% to $90.3 million; $13.4 million in higher personnel costs and $4.5 million in increased bad debt expense were partly offset by $4.9 million lower legal costs. Nine-month general and administrative expense rose 23% to $251.5 million, including $37.8 million more personnel costs and $6.7 million more bad debt expense, partly offset by $4.5 million lower legal costs.

Key facts

• Datadog's sales and marketing expense increased $202.6 million, or 29%, in the nine months ended September 30, 2026, primarily due to $164.2 million more in personnel and allocated overhead costs and $30.3 million more in advertising, sales, marketing and promotional activities. source
• Datadog's general and administrative expense increased $46.4 million, or 23%, in the nine months ended September 30, 2026, primarily due to $37.8 million more in personnel and allocated overhead costs and $6.7 million more in bad debt expense, partly offset by a $4.5 million decrease in legal costs. source
• Datadog's sales and marketing expense increased $64.6 million, or 27%, for the three months ended September 30, 2026, primarily due to $53.9 million in personnel and allocated overhead costs and $8.5 million in advertising, sales, marketing and promotional activities. source
• Datadog's general and administrative expense increased $16.1 million, or 22%, for the three months ended September 30, 2026, primarily due to $13.4 million in personnel and allocated overhead costs and $4.5 million in bad debt expense, partly offset by a $4.9 million decrease in legal costs. source
• Datadog expects sales and marketing expense to increase in absolute dollars as it expands its sales and marketing efforts. source
• Datadog expects general and administrative expense to increase in absolute dollars as its business grows. source

Impact estimates