Datadog, Inc. vs New Relic, Inc.
Side-by-Side SaaS Metrics & Valuation Comparison
analyticsDevTools & Observability
Data as of Q1 2026
Summary Verdict
DDOG: 5—NEWR: 0wins
Rule of 40
55.8DDOG
37.4NEWR
check_circleDDOG leads
Revenue Growth
29.7%DDOG
21.2%NEWR
check_circleDDOG leads
Gross Margin
80%DDOG
76%NEWR
check_circleDDOG leads
FCF Margin
26.1%DDOG
16.2%NEWR
check_circleDDOG leads
Operating Margin
-1.3%DDOG
-13.4%NEWR
check_circleDDOG leads
NRR
—DDOG
—NEWR
Metric
Rule of 40Efficiency score
DDOG
55.8check_circle
NEWR
37.4
Revenue GrowthYoY
DDOG
29.7%check_circle
NEWR
21.2%
Gross Margin% of revenue
DDOG
80%check_circle
NEWR
76%
FCF MarginFree cash flow
DDOG
26.1%check_circle
NEWR
16.2%
Operating MarginGAAP
DDOG
-1.3%check_circle
NEWR
-13.4%
NRRNet retention
DDOG
N/A
NEWR
N/A
EV / RevenueValuation multiple
DDOG
26.0x
NEWR
6.2xcheck_circle
Market CapUSD
DDOG
$91.7Bcheck_circle
NEWR
$6.2B
ARR GrowthYoY
DDOG
N/A
NEWR
N/A
CAC PaybackMonths to recover
DDOG
N/A
NEWR
N/A
insights
Analysis
As of Q1 2026, Datadog, Inc. trades at 26.0x EV/Revenue versus New Relic, Inc. at 6.2x. On the Rule of 40, Datadog, Inc. scores 55.8 compared to New Relic, Inc.'s 37.4, placing Datadog, Inc. ahead in operating efficiency. Gross margins stand at Datadog, Inc. 80% vs New Relic, Inc. 76%.
Sector Context
Both companies operate in the DevTools & Observability sector. The median columns above show where each company stands relative to their peers.