DigitalOcean vs. Datadog: What the Revenue Trends of These Tech Companies Reveal for Investors
Key Points
Datadog currently looks stronger on revenue, generating significantly higher totals and expanding its top-line lead.
Over the last eight quarters, both companies have maintained consistent quarter-over-quarter revenue growth without a single sequential decline.
Investors should watch whether the revenue gap between the two companies continues to widen in upcoming quarters.
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DigitalOcean: Consistent Revenue Steps
DigitalOcean (NYSE:DOCN) provides a global cloud computing environment that delivers on-demand infrastructure and developer tools to individuals and small businesses.
It launched an inference engine for agentic workloads in April 2026, while reporting 6% net income margin for the quarter ended March 31, 2026.
Datadog: Scaling Top-Line Growth
Datadog (NASDAQ:DDOG) offers a cloud-based monitoring and analytics solution that automates infrastructure oversight and application tracking for developers and operations personnel.
It introduced hardware tracking capabilities in April 2026, and posted 5% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail Investors
Revenue shows the total money brought in by operations before any expenses are deducted. This metric reveals whether an organization is successfully attracting customers and growing its overall business volume over time.
Quarterly Revenue for DigitalOcean and Datadog
| Quarter (Period End) | DigitalOcean Revenue | Datadog Revenue |
|---|---|---|
| Q2 2024 (June 2024) | $192.5 million | $645.3 million |
| Q3 2024 (Sept. 2024) | $198.5 million | $690.0 million |
| Q4 2024 (Dec. 2024) | $204.9 million | $737.7 million |
| Q1 2025 (March 2025) | $210.7 million | $761.6 million |
| Q2 2025 (June 2025) | $218.7 million | $826.8 million |
| Q3 2025 (Sept. 2025) | $229.6 million | $885.7 million |
| Q4 2025 (Dec. 2025) | $242.4 million | $953.2 million |
| Q1 2026 (March 2026) | $257.9 million | $1.0 billion |
Data source: Company filings. Data as of July 13, 2026.
Foolish Take
Examining the revenue trends for DigitalOcean and Datadog reveal they are excellent companies for investors seeking tech stocks to add to their portfolios. Both are experiencing rising revenue, with every quarter’s sales exceeding the last. That’s quite an accomplishment to maintain consistently over time.
Alongside its outstanding revenue growth, DigitalOcean notched accomplishments recently that make it a compelling investment. It was added to the Russell 1000 Index at the end of June. On July 7, it announced that it expects sales growth to accelerate to 29% year over year in the second quarter, an improvement over Q1’s 22% year-over-year increase.
Datadog’s business is also looking impressive as Q1 revenue reached $1 billion, representing a strong 32% jump up from the previous year. Achieving that kind of growth when its sales are so much higher than DigitalOcean’s is noteworthy, indicating its business is booming. This makes sense since artificial intelligence relies on data to function, and that’s Datadog’s bread and butter, making its platform an attractive choice for customers.
It’s ideal to own shares in both, since the expansion of the AI market provides a multi-year tailwind for these businesses.
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Robert Izquierdo has positions in Datadog and DigitalOcean. The Motley Fool has positions in and recommends Datadog and DigitalOcean. The Motley Fool has a disclosure policy.
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