DDOG
Datadog Inc.
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.
984.496 / 6,952.012
4,758.617 / 6,952.012
1,106.794 / 6,952.012
49.229 / 1,006.426
- 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.
- 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.
- 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.
- 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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