Dynatrace Shares Drop Despite Q3 Beat; Margin Contracts

Loading...
Loading...
  • Dynatrace Inc DT reported third-quarter FY22 revenue growth of 32% year-on-year to $240.8 million, beating the consensus of $234.4 million. 
  • Total ARR increased 29% Y/Y to $930 million. Revenues from Subscription rose 33% Y/Y to $226 million.
  • Margins: The non-GAAP operating margin contracted 400 basis points to 25%.
  • Non-GAAP EPS of $0.18 beat the consensus of $0.16.
  • Dynatrace generated $60.8 million in operating cash flow. It held $408.7 million in cash and equivalents.
  • Outlook: Dynatrace sees Q4 revenue of $245 million- $247 million, versus the consensus of $246.6 million. It sees non-GAAP EPS of $0.15 - $0.16 at par against the consensus of $0.15.
  • For FY22, it expects total revenue of $922 million - $924 million (prior view $913 million - $919 million), above the consensus of $917.4 million.
  • Non-GAAP EPS of $0.66 - $0.67 (prior $0.63 - $0.65), above the consensus of $0.65.
  • "Having completed my first quarter as CEO, I am very pleased with our third-quarter performance, beating the high end of guidance across our key operating metrics driven by new logo additions and continued net expansion rate above 120%," said CEO Rick McConnell.
  • Price Action: DT shares traded lower by 12.9% at $49.00 in the premarket session on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTechTrading IdeasBriefsIntegrated Telecommunication ServicesTelecommunication Serviceswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...