Dynatrace Q1 revenue, profit beat analyst estimates
Overview
Dynatrace fiscal Q1 rev grows 20% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for fiscal Q1 beats consensus, driven by expansion deals
Co repurchased $45 mln worth of shares under buyback program
Outlook
Dynatrace sees Q2 revenue at $484 mln to $489 mln
Company expects Q2 subscription revenue between $464 mln and $469 mln
Company sees Q2 Non-GAAP EPS of $0.40 - $0.41
Dynatrace raises full-year revenue forefcast to $1.970 bln to $1.985 bln
Company anticipates full-year subscription revenue of $1.884 bln to $1.899 bln
Result Drivers
EXPANSION DEALS - 12 expansion deals over $1 mln in ACV, 50% with significant Log Management deployments, per CEO Rick McConnell
SUBSCRIPTION MODEL - Over 45% of customer base and 65% of ARR now using Dynatrace Platform Subscription licensing model
AI PLATFORM - 3rd generation platform with Grail core driving demand due to cloud modernization and AI trends
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $477 mln | $467.10 mln (30 Analysts) |
Q1 Adjusted EPS | Beat | $0.42 | $0.38 (30 Analysts) |
Q1 EPS |
| $0.16 |
|
Q1 Adjusted Operating Income |
| $143 mln |
|
Q1 Annual Recurring Revenue |
| $1.82 bln |
|
Q1 Operating Income |
| $62 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Dynatrace Inc is $64.50, about 21.7% above its August 5 closing price of $50.53
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 30 three months ago
Press Release: ID:nBwbVVlYWa
