NYSE$DT
Dynatrace Inc · Q1 2025 earnings
Q1 2025 earnings · · Investor relations
Briefing
Dynatrace's Q1 2025 financial results surpassed expectations, demonstrating strong growth and profitability.
Dynatrace reported a strong first quarter for fiscal year 2025, exceeding guidance across all key metrics. The company achieved significant ARR growth, driven by the strength of its end-to-end observability platform and its 'power of 3' approach to AI.
- ARR increased by 19% year-over-year, or 20% on a constant currency basis, reaching $1,541 million.
- Total revenue grew by 20% year-over-year, or 21% on a constant currency basis, totaling $399 million.
- GAAP operating margin was 11%, while non-GAAP operating margin reached 29%.
- The company launched several new platform extensions and expanded its product capabilities, including Kubernetes Security Posture Management.
Headline financials
Revenue & EPS history
Dynatrace · Revenue · Quarterly
$412M
Revenue by segment
Dynatrace · $352M total across 2 segments · Q2 2024
- Subscription$334M+28.0%95.1%
- Service$17.2M-4.5%4.9%
Forward guidance
Dynatrace is issuing guidance for the second quarter and maintaining its previous guidance for full year fiscal 2025. We now expect foreign exchange to be a headwind of approximately $12 million on ARR and approximately $10 million on revenue for fiscal 2025.
Tailwinds
- Total revenue Q2 Fiscal 2025 Guidance: $404 - $407 million, As reported 15% - 16%, Constant currency 16% - 17%
- Subscription revenue Q2 Fiscal 2025 Guidance: $388 - $390 million, As reported 16% - 17%, Constant currency 17% - 18%
- Non-GAAP income from operations Q2 Fiscal 2025 Guidance: $113 - $116 million
- Non-GAAP operating margin Q2 Fiscal 2025 Guidance: 28% - 28.5%
- Non-GAAP net income Q2 Fiscal 2025 Guidance: $96 - $99 million
Headwinds
- ARR Fiscal 2025 Guidance: $1,720 - $1,735 million, As reported 14% - 15%, Constant currency 15% - 16%
- Total revenue Fiscal 2025 Guidance: $1,644 - $1,658 million, As reported 15% - 16%, Constant currency 16% - 17%
- Subscription revenue Fiscal 2025 Guidance: $1,571 - $1,585 million, As reported 16% - 17%, Constant currency 16% - 17%
- Non-GAAP income from operations Fiscal 2025 Guidance: $459 - $467 million
- Non-GAAP operating margin Fiscal 2025 Guidance: 28%
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2025
+1.6%
Avg return
Earnings day
+2.2%
Avg return
5 days after
+4.2%
Avg return
30 days after
57%
16 / 28 earnings
Positive
+20.5%
Q3 2023
Best reaction
-21.8%
Q3 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | -15.1% | +1.6% | +4.0% | |
| Q3 2026 | +7.3% | +10.4% | +11.5% | |
| Q2 2026 | -4.3% | -5.9% | -10.4% | |
| Q1 2026 | -0.1% | -8.9% | -1.0% | |
| Q4 2025 | +6.0% | +5.4% | +4.9% | |
| Q3 2025 | +0.7% | +3.4% | -0.2% | |
| Q2 2025 | -6.4% | -5.4% | +3.2% | |
| Q1 2025 | +16.8% | +16.1% | +23.9% | |
| Q4 2024 | +4.4% | +4.2% | -1.1% | |
| Q3 2024 | -11.3% | -14.2% | -22.8% | |
| Q2 2024 | +7.3% | +9.8% | +23.5% | |
| Q1 2024 | -13.5% | -12.5% | -12.7% | |
| Q4 2023 | +5.1% | +5.0% | +9.4% | |
| Q3 2023 | +20.5% | +20.6% | +12.8% | |
| Q2 2023 | -2.7% | -1.2% | +14.3% | |
| Q1 2023 | +6.3% | +9.7% | -4.1% | |
| Q4 2022 | +12.5% | +15.8% | +17.2% | |
| Q3 2022 | -21.8% | -16.0% | -26.4% | |
| Q2 2022 | -4.6% | -4.9% | -19.0% | |
| Q1 2022 | +2.0% | +2.6% | +7.2% | |
| Q4 2021 | -1.9% | +2.8% | +22.2% | |
| Q3 2021 | +17.6% | +27.5% | +13.4% | |
| Q2 2021 | -11.4% | -15.4% | -5.8% | |
| Q1 2021 | +4.0% | +1.6% | +6.2% | |
| Q4 2020 | -1.7% | -1.4% | +5.8% | |
| Q3 2020 | +11.8% | +5.4% | +12.6% | |
| Q2 2020 | +9.3% | +12.3% | +43.5% | |
| Q1 2020 | +7.1% | -6.9% | -13.9% | |
| Q4 2019 | — | — | — | |
| Q3 2019 | — | — | — | |
| Q2 2018 | — | — | — | |
| Q1 2018 | — | — | — | |
| Q4 2018 | — | — | — | |
| Q3 2017 | — | — | — |
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