analyticsVertical SaaS / DevTools & Observability
Data as of Q1 2026
Summary Verdict
NET: 1—DDOG: 4wins
Rule of 40
41.1NET
55.8DDOG
check_circleDDOG leads
Revenue Growth
31.4%NET
29.7%DDOG
check_circleNET leads
Gross Margin
74%NET
80%DDOG
check_circleDDOG leads
FCF Margin
9.7%NET
26.1%DDOG
check_circleDDOG leads
Operating Margin
-10.0%NET
-1.3%DDOG
check_circleDDOG leads
NRR
—NET
—DDOG
Metric
Rule of 40Efficiency score
NET
41.1
DDOG
55.8check_circle
Revenue GrowthYoY
NET
31.4%check_circle
DDOG
29.7%
Gross Margin% of revenue
NET
74%
DDOG
80%check_circle
FCF MarginFree cash flow
NET
9.7%
DDOG
26.1%check_circle
Operating MarginGAAP
NET
-10.0%
DDOG
-1.3%check_circle
NRRNet retention
NET
N/A
DDOG
N/A
EV / RevenueValuation multiple
NET
40.2x
DDOG
23.6xcheck_circle
Market CapUSD
NET
$88.4Bcheck_circle
DDOG
$83.3B
ARR GrowthYoY
NET
N/A
DDOG
N/A
CAC PaybackMonths to recover
NET
N/A
DDOG
N/A
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Analysis
As of Q1 2026, Cloudflare, Inc. trades at 40.2x EV/Revenue versus Datadog, Inc. at 23.6x. On the Rule of 40, Cloudflare, Inc. scores 41.1 compared to Datadog, Inc.'s 55.8, placing Datadog, Inc. ahead in operating efficiency. Gross margins stand at Cloudflare, Inc. 74% vs Datadog, Inc. 80%.