Dynatrace (DT) announced its fiscal fourth-quarter earnings and revenue that met Wall Street targets, along with a $500 million buyback for Dynatrace stock. On the stock market on Wednesday, Dynatrace stock rose 1.9% to 47.30 in morning trades. The company, based in Waltham, Massachusetts, reported earnings before the market open for the quarter ending March 31.
Dynatrace’s computer network monitoring tools measure and analyze the performance of business-critical applications and in the “observability” market, they monitor application performance over cloud-computing infrastructure. The company competes with Datadog (DDOG) and others, holding a Relative Strength Rating of 21 out of a best-possible 99, according to IBD Stock Checkup.
Heading into the earnings report, the software stock had retreated 14% in 2024. For full-year fiscal 2025, Dynatrace predicted earnings in a range of $1.26 per share to $1.29 per share, below analysts’ projected EPS of $1.32, and forecasted revenue of $1.651 billion at the midpoint of guidance, below estimates of $1.681 billion. Analysts had estimated profit of 30 cents on revenue of $380.8 million. Annual recurring revenue (ARR), a key financial metric for many software companies, rose by 21% to $1.5 billion from subscriptions during Q4 ARR from subscriptions was reported by Dynatrace as well as RBC Capital analyst Matthew Hedberg noted that Dynatrace closed a record number of seven-figure deals in the quarter