Overview

* Dynatrace ( DT ) fiscal Q1 rev grows 20% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q1 beats consensus, driven by expansion deals

* Co repurchased $45 mln worth of shares under buyback program

Outlook

* Dynatrace ( DT ) sees Q2 revenue at $484 mln to $489 mln

* Company expects Q2 subscription revenue between $464 mln and $469 mln

* Company sees Q2 Non-GAAP EPS of $0.40 - $0.41

* Dynatrace ( DT ) raises full-year revenue forefcast to $1.970 bln to $1.985 bln

* Company anticipates full-year subscription revenue of $1.884 bln to $1.899 bln

Result Drivers

* EXPANSION DEALS - 12 expansion deals over $1 mln in ACV, 50% with significant Log Management deployments, per CEO Rick McConnell

* SUBSCRIPTION MODEL - Over 45% of customer base and 65% of ARR now using Dynatrace Platform Subscription licensing model

* AI PLATFORM - 3rd generation platform with Grail core driving demand due to cloud modernization and AI trends

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $477 mln $467.10

Revenue mln (30

Analysts

)

Q1 Beat $0.42 $0.38

Adjusted (30

EPS Analysts

)

Q1 EPS $0.16

Q1 $143 mln

Adjusted

Operatin

g Income

Q1 $1.82

Annual bln

Recurrin

g

Revenue

Q1 $62 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Dynatrace Inc ( DT ) is $64.50, about 21.7% above its August 5 closing price of $50.53

* The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)