analyticsDevTools & Observability
Data as of Q1 2026
Summary Verdict
DDOG: 3—ESTC: 2wins
Rule of 40
55.8DDOG
42.8ESTC
check_circleDDOG leads
Revenue Growth
29.7%DDOG
31.8%ESTC
check_circleESTC leads
Gross Margin
80%DDOG
76%ESTC
check_circleDDOG leads
FCF Margin
26.1%DDOG
11.0%ESTC
check_circleDDOG leads
Operating Margin
-1.3%DDOG
-1.3%ESTC
check_circleESTC leads
NRR
—DDOG
—ESTC
Metric
Rule of 40Efficiency score
DDOG
55.8check_circle
ESTC
42.8
Revenue GrowthYoY
DDOG
29.7%
ESTC
31.8%check_circle
Gross Margin% of revenue
DDOG
80%check_circle
ESTC
76%
FCF MarginFree cash flow
DDOG
26.1%check_circle
ESTC
11.0%
Operating MarginGAAP
DDOG
-1.3%
ESTC
-1.3%check_circle
NRRNet retention
DDOG
N/A
ESTC
N/A
EV / RevenueValuation multiple
DDOG
23.6x
ESTC
3.8xcheck_circle
Market CapUSD
DDOG
$83.3Bcheck_circle
ESTC
$6.4B
ARR GrowthYoY
DDOG
N/A
ESTC
N/A
CAC PaybackMonths to recover
DDOG
N/A
ESTC
N/A
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insights
Analysis
As of Q1 2026, Datadog, Inc. trades at 23.6x EV/Revenue versus Elastic N.V. at 3.8x. On the Rule of 40, Datadog, Inc. scores 55.8 compared to Elastic N.V.'s 42.8, placing Datadog, Inc. ahead in operating efficiency. Gross margins stand at Datadog, Inc. 80% vs Elastic N.V. 76%.
Sector Context
Both companies operate in the DevTools & Observability sector. The median columns above show where each company stands relative to their peers.