Dynatrace Shares Jump in Pre-Market Trading
Dynatrace shares jump 8.2% in pre-market trading on Wednesday, following the release of its fiscal first-quarter results that surpassed analyst expectations.
Strong Earnings Performance
For the quarter ending June 30, Dynatrace reported adjusted earnings per share (EPS) of $0.33, exceeding the consensus forecast of $0.29.
Revenue for the period reached $399 million, a 20% increase year-over-year (YoY) and higher than the expected $392.22 million.
CEO’s Positive Outlook
Rick McConnell, Chief Executive Officer of Dynatrace, expressed satisfaction with the company’s performance: “We are pleased with our first-quarter results, which exceeded guidance across all our key metrics.”
Key Financial Metrics
- Annual Recurring Revenue (ARR): Up 20% YoY (constant currency) to $1.54 billion.
- Subscription Revenue: Increased by 21% to $381.6 million.
Full-Year and Q2 Guidance
Dynatrace has maintained its full-year fiscal 2025 guidance, forecasting revenue between $1.64 billion and $1.66 billion, reflecting a 15-16% growth rate.The company anticipates adjusted EPS between $1.26 and $1.29.
For the fiscal second quarter, Dynatrace expects revenue of $404 million to $407 million and adjusted EPS of $0.32 to $0.33.
Continued Demand for Observability and Security
The company emphasizes its “power of 3” AI approach, which integrates predictive, causal, and generative capabilities as a key competitive advantage.
Trade Anytime, Anywhere with EFI Markets
EFI Markets is a trusted stock market trading platform, making trading easy with its efficient interface and a variety of tools and features.