DDOG

Datadog Inc.

HALAL — SCREEN DOES NOT PASSstock

Is DDOG Halal?

Cloud observability and security software is generally permissible, but current liquidity screens fail.

What You Should Know

Datadog's March 31, 2026 filing reports debt/assets of 14.16%, cash plus marketable securities/assets of 68.45%, receivables plus cash/assets of 15.92% and disclosed interest income/revenue of 4.89%. The SaaS and defensive-security core is generally permissible, while customer industry, AI, government and dual-use exposure remains qualitative.

⚠️ Concerns

  • Cash plus marketable securities are 68.45% of total assets under the examined treatment
  • Disclosed interest income is 4.89% of quarterly revenue
  • Government, surveillance, AI and dual-use customer workloads require continuing review
  • Large fixed-income holdings affect asset-based methodology results
  • Stock compensation, acquisitions, privacy and cross-border data processing require review

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
14.16%Within limit
Below 33.333% under FTSE Yasaar

984.496 / 6,952.012

Cash + interest-bearing securities / assets
68.45%Above limit
Below 33.333% under FTSE Yasaar

4,758.617 / 6,952.012

Receivables + cash / assets
15.92%Within limit
Below 50% under FTSE Yasaar

1,106.794 / 6,952.012

Non-compliant income / revenue
4.89%Within limit
No more than 5% under FTSE Yasaar

49.229 / 1,006.426

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt is 14.16%, liquidity is 68.45% and receivables plus cash are 15.92%; liquidity exceeds the examined FTSE total-assets limit. Disclosed interest income is 4.89% of revenue.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt is 14.16% and receivables plus cash are 15.92%, but liquidity is 68.45%, above the examined MSCI total-assets limit. This is a calculation against the named method, not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt is 14.16%, but liquidity is 68.45%, above the examined Malaysia SAC financial limit. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.

Business-activity disclosure

Datadog provides cloud observability, infrastructure monitoring, application performance monitoring, log management, user-experience monitoring, cloud security and service-management software. Enterprise SaaS and defensive security are generally permissible, while government, surveillance, AI and customer-use exposure requires qualitative review.

Limitation: The filing does not allocate revenue by customer industry, government contract, security use case, AI workload or downstream application into a universal prohibited-revenue numerator; no blanket zero-concern claim is made.

Purification

Datadog discloses interest income but does not prescribe a scholar-approved purification percentage. Readers should follow the qualified scholar or methodology they use rather than applying an invented fixed rate.

Inputs, assumptions and primary sources
  • Inputs use Datadog's March 31, 2026 Form 10-Q; amounts are USD millions converted from the filing's USD-thousands presentation.
  • Debt uses the $984.496 million carrying amount of the 0.00% convertible senior notes due 2029. Operating lease liabilities are not entered as conventional debt.
  • Cash uses $426.360 million of cash and cash equivalents. Marketable securities of $4,332.257 million are entered separately as interest-bearing securities.
  • Receivables use $680.434 million of accounts receivable, net. Deferred contract costs are not treated as receivables.
  • Quarterly revenue is $1,006.426 million and disclosed interest income is $49.229 million. The screen uses the filing's gross interest-income line; no fixed purification percentage is prescribed.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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