Dynatrace (DT) 2021 Q4 Earnings Report Preview

Dynatrace Inc (NYSE:DT) helps companies manage and optimize their business applications using its AI-based software platform. The company offers its services to a range of industries including banking, retail, and healthcare. Its customer base includes notable names such as MGM and Santander. Dynatrace went public in July 2019 by selling 35.6 million shares at $16 apiece.

The Massachusetts-based software intelligence platform recently announced better-than-expected financial results for the fourth quarter. Dynatrace reported adjusted earnings of 15 cents per share for the three months ended March 31, ahead of analysts’ average estimate of 14 cents per share.

Revenue for the quarter came in at $197 million, translating to a year-over-year surge of 31 percent. Analysts on average were expecting Dynatrace to report revenue of $191.81 million. If we look at the performance of different segments, subscription revenue jumped 35 percent to $183 million, while service revenue increased 4.7 percent to $13.6 million. However, license revenue plummeted 95 percent to $0.109 million in the quarter.

The company’s CEO John Van Siclen expressed his satisfaction over the results. He said in a statement, “Dynatrace’s strong fourth quarter performance capped off an excellent year exceeding guidance across all our key operating metrics led by ARR growth of 35% year-over-year. As digital transformation and cloud-first initiatives continue to accelerate, our unique value proposition combining modern cloud observability with powerful AIOps capabilities continues to resonate with customers.”

Dynatrace also issued its financial outlook for the first quarter. The company expects to report adjusted earnings in the range of 14 cents per share to 15 cents per share on revenue of $202 million to $204 million. Analysts on average were looking for earnings of 14 cents per share on revenue of $197.04 million for the current quarter.

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