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News

Dynatrace CEO Highlights 7-Figure Deals As Q4 Earnings Exceed Expectations, Plans $500M Stock Buyback

Author: Anusuya Lahiri | May 15, 2024 11:11am

Dynatrace, Inc (NYSE:DT) reported fiscal fourth-quarter 2024 revenue growth of 21% year-on-year to $380.85 million, beating the analyst consensus estimate of $375.29 million

Adjusted EPS of $0.30 beat the analyst consensus estimate of $0.27. The stock price gained after the print.

Annual Recurring Revenue (ARR) increased by 21% Y/Y or 20% in constant currency. Revenues from Subscription rose 22% Y/Y to $360 million (CC).

The adjusted operating margin remained steady Y/Y at 25%. 

Dynatrace generated $121.3 million in free cash flow during the quarter. It held $836.87 million in cash and equivalents as of March-end.

Buyback: The company announced a $500 million share repurchase program.

“Our fourth quarter results exceeded guidance across all key operating metrics, fueled in part by a record number of 7-figure deals closed in the quarter,” said Rick McConnell, Chief Executive Officer.

Outlook: Dynatrace expects fiscal first quarter 2025 revenue of $391 million- $393 million (consensus $393.58 million). Dynatrace expects adjusted EPS of $0.29 – $0.30 (consensus $0.30).

For fiscal 2025, Dynatrace expects revenue of $1.644 billion – $1.658 billion vs. the consensus of $1.683 billion.

Dynatrace expects adjusted EPS of $1.26 – $1.29  vs. the consensus of $1.32.

Price Action: DT shares traded lower by 0.84% at $46.06 at the last check Wednesday.

Posted In: DT