DT Earnings Prediction
The chart below shows how DT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DT sees a +0.50% change in stock price 10 days leading up to the earnings, and a +4.34% change 10 days following the report. On the earnings day itself, the stock moves by -0.95%. This data can give you a slight idea of what to expect for the next quarter's release.
DT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
365.10M
22.74%
3.81%
Gross Margin
79.92%
1.14%
-0.22%
Operating Margin
9.81%
-13.87%
-5.94%
Net Margin
11.69%
131.49%
14.83%
EPS
0.14
180.00%
16.67%
No Data Available
DT Earnings Analysis
Dynatrace Inc Corporation (DT.N) Earnings Conference Call
Positive
ARR Growth Achievement: ARR grew 18% year over year, reaching $1,650,000,000 in Q3.
Subscription Revenue Surge: Subscription revenue increased 21% year over year to $417,000,000, exceeding guidance by $7,000,000.
Customer Loyalty and Expansion: Net retention rate (NRR) was 111% in Q3, indicating strong customer loyalty and expansion.
Average ARR Milestone: The average ARR per customer surpassed $400,000 for the first time, reflecting increased adoption of the platform.
Free Cash Flow Analysis: Free cash flow for Q3 was $38,000,000, with a trailing 12-month free cash flow margin of 25% of revenue.
Negative
Net New ARR Performance: Q3 net new ARR on a constant currency basis was $68,000,000 down modestly from the same period last year and up 5% year to date for fiscal 2025.
Customer Acquisition Decline: In Q3, we added 193 new logos to the Dynatrace platform, which indicates a decline in customer acquisition compared to previous quarters.
Gross Margin Decline: Non GAAP gross margin for the Q3 was 84%, down slightly from the prior quarter and prior year due to increasing cloud hosting costs as we migrate more of our customers to our SaaS solution.
Currency Impact on Revenue: The strength of the U.S. Dollar since our last call creates a sizable headwind, now expecting FX to be a headwind of $38,000,000 to ARR and $17,000,000 to revenue.
Observability Deal Trends: The trend of larger and more strategic deals related to observability platform architecture and tool consolidation initiatives continues to grow, introducing increased variability in terms of both close timing and deal certainty.
DT FAQs
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DT Earning Call Sentiment
Earnings call transcript: Dynatrace Q3 2024 beats estimates, stock rises
DT.N
-2.22%Positive
The earnings call highlights strong financial performance with raised guidance across key metrics, including ARR and revenue, despite some competitive and economic pressures. The company is actively expanding its go-to-market strategy and has made significant customer wins. Share repurchases indicate confidence in future growth. While some concerns were raised in the Q&A, particularly around on-demand consumption and its impact on traditional metrics, the overall sentiment remains positive due to strong financial results and optimistic guidance.
