Key Points
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Datadog currently demonstrates a stronger overall revenue profile, as the business continues to deliver consistent upward momentum across recent reporting periods compared to the more volatile growth patterns seen from The Trade Desk.
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Over the last eight periods, Datadog has consistently produced steady quarter-over-quarter revenue increases without any interruption, whereas The Trade Desk has experienced more variable quarter-over-quarter patterns characterized by noticeable cyclical peaks and subsequent seasonal declines.
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Investors analyzing the two companies should carefully watch whether the clear divergence in their historical revenue growth patterns continues to widen steadily, or if the respective trajectories begin to align more closely in upcoming quarters.
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Datadog: Maintaining Consistent Revenue Trajectories Over Recent Quarters
Datadog (NASDAQ:DDOG) primarily provides a cloud-based software service that helps commercial businesses monitor and analyze their internal technology systems.
While completing the strategic acquisition of Adaptive ML to expand internal research capabilities in the artificial intelligence space, and making available several new developer tools to the general public, it generated a net income margin of 4% for the quarter ended June 30, 2026.
The Trade Desk: Navigating Volatile Revenue Trends and Leadership Changes
The Trade Desk (NASDAQ:TTD) primarily offers a self-service digital software platform enabling professional advertising buyers to manage data-driven ad campaigns.
It recently navigated an extensive executive leadership overhaul and faced ongoing shareholder investigations related to executive fiduciary duties, while expanding its international integrations and generating an operating margin of 14% for the quarter ended June 30, 2026.
Why Revenue Matters for Investors Analyzing These Businesses
Revenue functions as an essential foundational metric that helps investors continuously monitor the total gross sales a commercial business accumulates over time before any standard operating costs, employee salaries, corporate taxes, or other mandatory financial obligations are deducted from the final ledger. Tracking this figure helps investors measure a company’s baseline growth trajectory over time.
Quarterly Revenue Comparison for Datadog and The Trade Desk
Quarter (Period End)Datadog RevenueThe Trade Desk RevenueQ3 2024 (Sept. 2024)$690.0 million$628.0 millionQ4 2024 (Dec. 2024)$737.7 million$741.0 millionQ1 2025 (March 2025)$761.6 million$616.0 millionQ2 2025 (June 2025)$826.8 million$694.0 millionQ3 2025 (Sept. 2025)$885.7 million$739.4 millionQ4 2025 (Dec. 2025)$953.2 million$846.8 millionQ1 2026 (March 2026)$1.0 billion$688.9 millionQ2 2026 (June 2026)$1.1 billion$715.1 million
Foolish Take
Comparing the revenue trends between these tech companies reveals Datadog’s consistent quarter-over-quarter sales increases, a testament to the strong demand for its solutions. The Trade Desk is experiencing a more typical year-over-year growth trend.
Datadog expects quarterly growth to continue, forecasting to exit 2026 with about $4.5 billion in sales, up from $3.4 billion in 2025. Meanwhile, The Trade Desk anticipates third-quarter revenue to reach at least $650 million.
While The Trade Desk experiences seasonal ups and downs typical of the advertising industry, its Q3 forecast would represent a drop from the prior year’s $739 million. If that proves to be the case, the company’s trend of year-over-year sales growth would end, a concerning outcome for investors. Already in Q2, its net income of $64.4 million was a decline from 2025’s $90.1 million, so if its revenue falls in Q3, net income could shrink further.
As these revenue indicators suggest, Datadog’s business is booming while The Trade Desk appears headed for a difficult time ahead.
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Robert Izquierdo has positions in Datadog and The Trade Desk. The Motley Fool has positions in and recommends Datadog and The Trade Desk. The Motley Fool has a disclosure policy.
