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Why Is Software Company Dynatrace Stock Jumping Today?

Author: Akanksha Bakshi | August 07, 2024 10:09am

Dynatrace, Inc. (NYSE:DT) shares are trading higher after the company reported better-than-expected first-quarter 2025 results on Wednesday.

Dynatrace reported first-quarter revenue growth of 20% year over year to $399.22 million, beating the consensus of $391.758 million. Adjusted EPS was $0.33, up from $0.27, beating the consensus estimate of $0.29.

Annual Recurring Revenue (ARR) increased by 19% year over year or 20% in constant currency. Revenues from Subscription rose 21% year over year to $381.676 million.

The adjusted operating margin expanded 96 bps to 28.6%, with operating income up 24.1% YoY to $114.25 million.

As of June-end, Dynatrace held $1 billion million in cash and equivalents. Through June-end, Dynatrace repurchased approximately 1.1 million shares for approximately $50 million under its $500 million share repurchase program.

Q2 Outlook: Dynatrace expects revenue of $404 million- $407 million (consensus $404.881 million). Dynatrace expects adjusted EPS of $0.32 – $0.33 (consensus $0.32).

Reaffirmed 2025 Outlook: Dynatrace expects revenue of $1.644 billion – $1.658 billion vs. the consensus of $1.655 billion. ARR is expected to be $1.72 billion – $1.735 billion.

Dynatrace continues to expect adjusted EPS of $1.26 – $1.29 versus the consensus of $1.28.

Price Action: DT shares traded higher by 15.5% at $46.75 at the last check Wednesday.

Image via Shutterstock

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