Dynatrace Q4 revenue rises 19%, adjusted EPS beats estimates

Overview

• AI observability platform's Q4 revenue rose 19%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company boosted Q4 share repurchases by 40% to $224 mln

Outlook

• Dynatrace sees FY27 ARR between $2.382 bln and $2.402 bln, up 16%-17% as reported

• Company expects FY27 total revenue of $2.317 bln to $2.335 bln, up 15%-16% as reported

• Dynatrace forecasts FY27 non-GAAP net income per diluted share of $1.93 to $1.95

Result Drivers

• CUSTOMER DEMAND - Co said ongoing traction in go-to-market strategy led to higher average deal size and a record 22 deals over $1 mln ACV, including nine new customers

• LOG MANAGEMENT GROWTH - Log management remained fastest-growing product, with Q4 consumption up more than 100% year-over-year

Company press release: ID:nBw92cJkNa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 11 "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 $48.00, about 22.4% above its May 12 closing price of $39.21

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

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