08:41 AM EDT, 05/15/2024 (MT Newswires) -- Dynatrace ( DT ) on Wednesday recorded better-than-expected fiscal fourth-quarter results, while the software company forecasts fiscal 2025 results to be higher than the previous year.

Per-share adjusted earnings came in at $0.30 for the three months through March, down from $0.31 the year before, but better than the Capital IQ-polled consensus of $0.27. Overall revenue 21% to $380.8 million, topping the Street's view for $375.5 million. Subscription revenue gained 23% to $360.1 million.

"Our fourth-quarter results exceeded guidance across all key operating metrics, fueled in part by a record number of seven-figure deals closed in the quarter," Chief Executive Rick McConnell said in a statement. "We continue to see a growing number of companies looking to consolidate often ineffective and costly monitoring tools into a unified observability platform."

Annualized recurring revenue jumped 21% to $1.5 billion driven by the "large, strategic observability architecture vendor consolidation deals," Chief Financial Officer Jim Benson said on an earnings call, according to a Capital IQ transcript. Dynatrace ( DT ) added "$84 million of constant currency net new ARR in the quarter driven by a record number of seven-figure competitive wins, our largest nearly eight-figure (annual contract value) new logo land and our first ever nine-figure (total contract value) expansion," according to Benson.

For fiscal 2025, the company expects adjusted EPS to be between $1.26 to $1.29 versus $1.20 in the prior year. Revenue is pegged at $1.64 billion to $1.66 billion, underpinned by a 16% to 17% increase in subscription revenue. In fiscal 2024, revenue climbed 21% to $1.43 billion. The Street is looking for normalized EPS of $1.31 and revenue of $1.68 billion.

Full-year ARR is seen at $1.72 billion to $1.74 billion, representing annual growth of 14% to 15% on a reported basis. Foreign exchange is set to be a headwind of roughly $10 million on ARR and overall revenue, according to the company.

"We remain confident in our ability to exceed the $100 million annualized revenue thresholds we set for ourselves some time ago," Benson said on the call. "However, based on current consumption trends, it is more likely we will surpass these thresholds during fiscal 2026 rather than the end of fiscal 2025."

For the current quarter, Dynatrace ( DT ) is guiding for revenue to incline 17% to 18% year-on-year to between $391 million and $393 million on subscription revenue growth of 18% to 19%. Adjusted EPS is seen at $0.29 to $0.30. Analysts are looking for normalized EPS of $0.30 and revenue of $393.5 million.

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