Dynatrace Inc. (DT) exceeded Wall Street’s expectations in the third quarter. Dynatrace’s product demand peaked during the pandemic, leading to a rise in subscription revenues.
Dynatrace provides programs to monitor corporate computer systems. Among other things, Dynatrace’s smart algorithms can prevent problems with access to web resources and help identify implicit data center problems.
Dynatrace’s revenue last quarter grew 28 % to $182.9 million and surpassed analysts’ expectations of US$172.3 million. The quarter’s subscription revenue increased by 33 percent to $ 170.3 million, while annual recurring revenue grew by 35 percent to $ 722 million. More than 20 percent of sales came from existing customers, an indication of possible sustained growth.
Dynatrace Inc. (DT) announced adjusted operating revenue of $53.4 million, which is almost 40% more than a year ago. As a result, adjusted earnings per share were $0.17, beating expectat0.17.
During the quarter, Dynatrace offered a wide range of security-related services targeting the approximately $18 billion cloud application security market and bolstered partnerships with Google Cloud Platform and Microsoft Azure.
Dynatrace intends to maintain its growth momentum in the fourth quarter based on its strong position in the IT monitoring market. Fast-paced digitization and the development of cloud computing are two of the company’s key growth drivers. According to management, the company’s fourth-quarter revenue will grow by 26 to 28 percent, between $190 and $192 million. The adjusted earnings per share may be between $0.13 and $0.14.
Dynatrace Inc. (NYSE: DT) is trading at around $51.75, which means its value has risen 202.63% from its 52-week low. DT shares have hit a high of $53.17 and a low of $50.28 in intraday trading. The company’s shares have recently reached highs of $52.48 and lows of $17.10 over the last 52 weeks, with intraday movements of just 3.25%.
