Dynatrace beats Q4 earnings estimates with rising revenues, announces share repurchase program

From Nasdaq: 2024-05-16 12:45:00

Dynatrace’s fourth-quarter fiscal 2024 earnings beat estimates with adjusted earnings of 30 cents, a 11.11% beat, and revenues of $381 million, a 1.51% beat. Subscription revenues increased 23% year over year to $360 million. The company added 168 new logos in the quarter and announced a share repurchase program worth $500 million.

Total annual recurring revenues (ARR) at the end of the fourth quarter increased 21% year over year to $1.5 billion. Dynatrace achieved notable wins with key deals, including its largest-ever new logo deal. The company’s latest offerings, like log monitoring and application security, saw significant growth. The company added 692 new logos in fiscal 2024.

Guidance for first-quarter fiscal 2025 includes projected revenues between $391 million and $393 million, with subscription revenues estimated between $374 million and $376 million. Non-GAAP operating income is expected between $105 million and $108 million, with anticipated earnings between 29-30 cents per share. Operating margin expanded to 25% in the reported quarter.

Dynatrace has a Zacks Rank #4 (Sell) and shares have declined 12.7% year to date. Investors may consider other better-ranked stocks like CrowdStrike, NVIDIA, and Intuit. CrowdStrike, NVIDIA, and Intuit are scheduled to release first-quarter fiscal 2025 results soon. CrowdStrike shares have surged 34.4% year to date, while NVIDIA and Intuit have seen significant gains as well.



Read more at Nasdaq: Dynatrace (DT) Q4 Earnings Beat Estimates, Revenues Rise Y/Y