NYSE$DT

Dynatrace Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Dynatrace's Q4 2024 earnings exceeded guidance across all key operating metrics, driven by a record number of 7-figure deals and strong ARR growth.

Dynatrace reported a strong finish to fiscal year 2024, with fourth-quarter results exceeding guidance across all key operating metrics. The company's ARR grew by 20% year-over-year on a constant currency basis, reaching $1,504 million. Dynatrace also announced a $500 million share repurchase program, demonstrating confidence in the business and future growth prospects.

  • ARR increased by 21% year-over-year, or 20% on a constant currency basis, reaching $1,504 million.
  • Total revenue increased by 21% year-over-year, or 21% on a constant currency basis, reaching $381 million.
  • GAAP EPS was $0.13, and non-GAAP EPS was $0.30 on a dilutive basis.
  • Closed a record 18 deals greater than $1 million in annual contract value (ACV) in the quarter.

Headline financials

Total Revenue

$381M

Previous: $314M+21.1%
EPS (adj)

$0.30

Previous: $0.31-3.2%
Total ARR

$1.5B

Previous: $1.25B+20.6%
Non-GAAP Operating Margin

25.0%

No prior period
Free Cash Flow Margin

32.0%

No prior period
Capital Expenditures

-$10.4M

Previous: $5.92M-276.0%
Net Income

$37.9M

Previous: $80.3M-52.7%
Operating Income

$23.1M

Previous: $19.4M+19.0%
Gross Profit

$304M

Previous: $255M+19.1%
R&D Expense

$84.3M

No prior period
Stock-Based Comp

$55.6M

Previous: $42M+32.3%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$381M

Q4 2024+21.1%vs Q4 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Dynatrace · $352M total across 2 segments · Q2 2024

  • Subscription
    $334M+28.0%
  • Service
    $17.2M-4.5%

Forward guidance

Dynatrace is issuing guidance for the first quarter and full year fiscal 2025 based on information available as of May 15, 2024. The total foreign exchange headwind for fiscal 2025 is expected to be approximately $10 million on ARR and revenue.

Tailwinds

  • ARR is expected to be $1.72 billion - $1.735 billion (as reported 14% - 15%, constant currency 15% - 16%) for FY2025.
  • Total revenue is expected to be $391 million - $393 million (as reported 17% - 18%, constant currency 18% - 19%) for Q1 2025.
  • Total revenue is expected to be $1.644 billion - $1.658 billion (as reported 15% - 16%, constant currency 16% - 17%) for FY2025.
  • Subscription revenue is expected to be $374 million - $376 million (as reported 18% - 19%, constant currency 19%) for Q1 2025.
  • Subscription revenue is expected to be $1.571 billion - $1.585 billion (as reported 16% - 17%, constant currency 16% - 17%) for FY2025.

Headwinds

  • Non-GAAP income from operations is expected to be $105 million - $108 million for Q1 2025.
  • Non-GAAP income from operations is expected to be $459 million - $467 million for FY2025.
  • Non-GAAP net income is expected to be $86 million - $89 million for Q1 2025.
  • Non-GAAP net income is expected to be $383 million - $392 million for FY2025.
  • Non-GAAP net income per diluted share is expected to be $0.29 - $0.30 for Q1 2025.

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 Q4 2024

Historical avgQ4 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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