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Monday, May 11, 2020 2:53:02 AM
Dynatrace Earnings Surge 400%; Software IPO Stock Jumps
REINHARDT KRAUSE
01/29/2020
Dynatrace earnings jumped more than 400% during its fiscal third-quarter, the company said Wednesday, as the recent initial public offering topped Wall Street estimates. Dynatrace stock jumped on the news.
Earnings for Waltham-Mass.-based Dynatrace (DT) were an adjusted 10 cents a share vs. 2 cents for the year-ago quarter. The enterprise software maker's revenue climbed 25% to $143.3 million from $114.7 million a year ago.
Analysts expected Dynatrace earnings of 7 cents a share on revenue of $137.5 million for the period ended Dec. 31.
Analysts say one key financial metric for Dynatrace stock heading into earnings was annual recurring revenue. Dynatrace said ARR rose 44% to $534.5 million in the third quarter, topping estimates of $514.5 million.
The company added 380 customers to reach 2,208 total platform customers, up 92% year-over-year.
Dynatrace Stock: Annual Recurring Revenue Key Metric
"We think ARR is an important metric for investors and are encouraged by the 44% growth in total ARR this quarter," said BMO Capital Markets analyst Keith Bachman in a report. "We believe ARR growth will be driven primarily by high net retention rates, along with new customer adds."
He added: "We anticipate total ARR growth to be 40% in fiscal Q4, and gradually moderate to the mid-to-low-30% range in fiscal 2021."
Dynatrace also said subscription revenue rose 36% to $139.4 million.
For the current quarter ending March 31, its fiscal fourth, Dynatrace forecast profit of 8 cents and revenue of $147.5 million at its midpoint of guidance. Analysts had modeled for Dynatrace earnings of 7 cents a share and revenue of $144.8 million.
Dynatrace Stock: Rivals Include Cisco, New Relic
Dynatrace stock jumped 8.1% to close at 31 on the stock market today. Intraday, shares surged nearly 15% at one point to 32.95. On Tuesday, Dynatrace stock rose 2.6% to 28.68, edging out of a buy zone with an entry point of 27.29.
Short interest in Dynatrace stock had shot up ahead of its earnings report, brokerage Goldman Sachs said in a note to clients.
Dynatrace's software tools measure and analyze the performance of business-critical applications.
Dynatrace went public Aug. 1, backed by private equity firm Thoma Bravo. The Dynatrace IPO raised $570 million, with shares priced at 16.
Dynatrace competes versus the AppDynamics unit of Cisco Systems (CSCO), New Relic (NEWR) and others.
Recent DT News
- Dynatrace to Report First Quarter Fiscal Year 2025 Financial Results • Business Wire • 07/24/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/16/2024 08:49:36 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/15/2024 08:02:51 PM
- Form ARS - Annual Report to Security Holders • Edgar (US Regulatory) • 07/09/2024 10:36:16 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 07/09/2024 10:35:08 AM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 07/09/2024 10:33:34 AM
- Dynatrace Becomes the First AWS Partner to Integrate with AWS Application Migration Service • Business Wire • 07/01/2024 12:00:00 PM
- Dynatrace nommé lauréat du prix 2024 de Partenaire Microsoft de l'année pour les Amériques • Business Wire • 06/28/2024 08:17:00 PM
- Dynatrace Named a Winner in the 2024 Microsoft Americas Partner of the Year Awards • Business Wire • 06/28/2024 12:00:00 PM
- Gigamon Launches Power of 3 Cloud Integration Initiative with Dynatrace and Trace3 to Deliver Deep Observability Solution to Joint Customers • Business Wire • 06/13/2024 02:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:56:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:54:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:53:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:51:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:44:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:42:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:37:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:30:39 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/07/2024 08:10:30 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/06/2024 09:00:32 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 05/23/2024 08:17:33 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 05/23/2024 08:07:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 08:39:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 08:38:50 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/16/2024 12:51:40 AM
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