Stock Market News

Dynatrace Shares Turn Positive as RBC Says Guidance Looks ‘Conservative’

2024.05.15 07:53

Dynatrace Shares Turn Positive as RBC Says Guidance Looks 'Conservative'

WALTHAM, Mass. – Dynatrace Inc. (NYSE: NYSE:), a leader in unified observability and security, reported fourth-quarter earnings that surpassed analyst expectations but provided a softer outlook for fiscal 2025. Still, shares were up 4% in premarket trade.

The company announced a $0.30 adjusted EPS for the quarter, $0.03 above the consensus estimate of $0.27. Revenue for the quarter was reported at $381 million, beating the consensus estimate of $375.27 million and marking a 21% increase YoY.

Despite the strong fourth-quarter performance, Dynatrace’s guidance for the first quarter of 2025 and the full year fell short of analyst expectations. For Q1 2025, the company forecasts an adjusted EPS between $0.29 and $0.30, with the midpoint below the consensus of $0.30. Revenue guidance for the same period is set at $391-393 million, again with the midpoint falling short of the $393.6 million consensus.

For the full fiscal year 2025, Dynatrace anticipates an adjusted EPS of $1.26-$1.29, compared to the analyst consensus of $1.32, and revenue guidance of $1.64-1.65 billion versus the expected $1.68 billion.

“We’d call Q4/24 results better than expected with FY/25 guidance conservative,” RBC analysts said. 

CEO Rick McConnell attributed the strong fourth-quarter results to a record number of 7-figure deals and the company’s ability to consolidate monitoring tools into a unified platform. CFO Jim Benson also highlighted the announcement of a $500 million share repurchase program, reflecting confidence in the business and future growth prospects.

The company’s annual recurring revenue (ARR) grew 20% YoY on a constant currency basis, reaching $1,504 million. Subscription revenue also saw a significant increase of 23% YoY to $360 million. Dynatrace’s full-year financials showed a 23% increase in total revenue YoY, reaching $1,431 million, and a 25% increase in subscription revenue to $1,359 million.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

Dynatrace’s market position was further solidified by industry recognitions, including being named a Leader in the 2024 GigaOm Radar Report for Cloud Observability Solutions and receiving the Customers’ Choice distinction in the 2024 Gartner® Peer Insights™ Voice of the Customer for Digital Experience Monitoring report. Additionally, the company successfully closed the acquisition of Runecast, enhancing its AI-driven security and compliance capabilities.

Investors reacted to the soft guidance for fiscal 2025, with the stock price moving down 3.6% following the earnings release.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 84,543.65 1.81%
ethereum
Ethereum (ETH) $ 1,947.84 3.86%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.37 3.22%
bnb
BNB (BNB) $ 629.04 5.12%
solana
Solana (SOL) $ 130.40 2.85%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.727541 3.81%
dogecoin
Dogecoin (DOGE) $ 0.175658 4.20%
tron
TRON (TRX) $ 0.220134 2.99%
staked-ether
Lido Staked Ether (STETH) $ 1,945.01 3.89%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 84,376.61 1.77%
pi-network
Pi Network (PI) $ 1.34 3.61%
leo-token
LEO Token (LEO) $ 9.82 2.67%
chainlink
Chainlink (LINK) $ 14.16 5.35%
the-open-network
Toncoin (TON) $ 3.50 3.43%
stellar
Stellar (XLM) $ 0.27615 3.43%
usds
USDS (USDS) $ 1.00 0.00%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,331.55 3.84%
hedera-hashgraph
Hedera (HBAR) $ 0.194039 5.39%
avalanche-2
Avalanche (AVAX) $ 19.03 3.86%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 0.97%
sui
Sui (SUI) $ 2.37 6.22%
litecoin
Litecoin (LTC) $ 93.57 4.36%
mantra-dao
MANTRA (OM) $ 7.03 3.13%
bitcoin-cash
Bitcoin Cash (BCH) $ 341.53 2.49%
polkadot
Polkadot (DOT) $ 4.42 4.42%
ethena-usde
Ethena USDe (USDE) $ 0.999738 0.01%
weth
WETH (WETH) $ 1,947.40 3.81%
bitget-token
Bitget Token (BGB) $ 4.44 1.64%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.20%
hyperliquid
Hyperliquid (HYPE) $ 13.63 3.49%
whitebit
WhiteBIT Coin (WBT) $ 28.58 0.61%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,069.18 3.83%
monero
Monero (XMR) $ 211.99 0.19%
uniswap
Uniswap (UNI) $ 6.38 5.03%
susds
sUSDS (SUSDS) $ 1.04 0.10%
aptos
Aptos (APT) $ 5.41 5.31%
dai
Dai (DAI) $ 0.999668 0.05%
near
NEAR Protocol (NEAR) $ 2.68 6.89%
okb
OKB (OKB) $ 50.46 3.21%
pepe
Pepe (PEPE) $ 0.000007 13.27%
internet-computer
Internet Computer (ICP) $ 6.02 8.25%
mantle
Mantle (MNT) $ 0.829591 1.46%
ondo-finance
Ondo (ONDO) $ 0.881944 7.70%
ethereum-classic
Ethereum Classic (ETC) $ 18.04 3.55%
gatechain-token
Gate (GT) $ 22.01 3.68%
tokenize-xchange
Tokenize Xchange (TKX) $ 32.96 10.69%
aave
Aave (AAVE) $ 176.69 7.07%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 84,580.66 1.94%