Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Dynatrace (DT) , which belongs to the Zacks Computers - IT Services industry.When looking at the last two reports, this software intellegence company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 11.06%, on average, in the last two quarters.For the most recent quarter, Dynatrace was expected to post earning ...

Investors with an interest in Computers - IT Services stocks have likely encountered both Leidos (LDOS) and Dynatrace (DT) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate ...

Investors looking for stocks in the Computers - IT Services sector might want to consider either Leidos (LDOS) or Dynatrace (DT) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings ...

Summary of Dynatrace Conference Call Company Overview - **Company**: Dynatrace - **Industry**: Observability Software - **Key Executives Present**: Rick McConnell (CEO), Jim Benson (CFO) [1][2] Core Points and Arguments 1. **Market Size and Growth**: The observability market is valued at over $50 billion, with application security contributing around $14 billion, totaling approximately $65 billion [9] 2. **Evolution of Observability**: The transition from basic monitoring (dashboards) to advanced observability using AI, which provides precise insights and auto-remediation capabilities [8][9] 3. **Challenges in Software Management**: Increasing complexity in software environments due to cloud adoption, leading to a need for sophisticated observability solutions [10][14] 4. **Business Observability**: A shift towards understanding not just software performance but overall business performance, indicating a broader application of observability tools [16][17] 5. **Integrated Platform**: Dynatrace offers a unified observability platform that consolidates various monitoring tools, enhancing efficiency and insights [18][19] 6. **AI Capabilities**: The platform utilizes causal, predictive, and generative AI to provide actionable insights and improve user experience [21][22][23] 7. **Customer Success Stories**: A case study with British Telecom showed a 50% reduction in incidents and a 90% reduction in mean time to respond, translating to significant cost savings [24][25] 8. **Market Position**: Dynatrace is recognized as a leader in the observability space, consistently ranking in the upper right quadrant of industry reports [26] 9. **Financial Performance**: The company reported an annual recurring revenue (ARR) of approximately $1.7 billion, with a 20% growth in subscription revenue and a 29% operating margin [27][28] Additional Important Insights 1. **Competitive Landscape**: The presence of multiple players in the observability market is seen as beneficial, as it drives consolidation and simplification of tools for customers [31][32] 2. **Impact of Generative AI**: The rise of AI is creating more software workloads, increasing the demand for observability solutions [35][37] 3. **Macro Environment Resilience**: Despite a volatile macroeconomic environment, the observability market remains resilient, with companies seeking cost-saving solutions [41][42] 4. **Guidance Philosophy**: The company maintains a cautious approach to guidance, factoring in potential elongation of deal cycles while noting strong pipeline health [44][48] 5. **DPS Transition**: The new pricing model (DPS) has led to higher customer engagement, with customers leveraging more capabilities compared to the previous SKU-based model [51][53] This summary encapsulates the key points discussed during the Dynatrace conference call, highlighting the company's strategic direction, market position, and financial health.

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ASHBURN, Va., May 30, 2025 /PRNewswire/ - DXC Technology, a leading Fortune 500 global technology services provider, today announced it has been named Global Partner of the Year at the Dynatrace Amplify Partner Sales Kickoff. The award recognizes DXC's 15-year strategic collaboration with Dynatrace—marked by deep technical expertise, strategic investment, and transformative results for enterprise customers worldwide.  Dynatrace Names DXC Global Partner of the Year (CNW Group/DXC Technology Company) The ...

Core Viewpoint - Dynatrace (DT) is positioned as a strong investment opportunity due to its improving earnings outlook and positive analyst sentiment [1][2] Earnings Estimate Revisions - Analysts have shown growing optimism regarding Dynatrace's earnings prospects, leading to upward revisions in earnings estimates, which typically correlate with stock price movements [2] - The current-quarter earnings estimate is $0.37 per share, reflecting a year-over-year increase of +12.12% and a 21.59% rise in consensus estimates over the last 30 days, with nine estimates moving higher [6] - For the full year, Dynatrace is expected to earn $1.58 per share, indicating a +13.67% year-over-year change, with nine estimates raised against two negative revisions [7] Zacks Rank and Performance - Dynatrace currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts on the positive earnings revisions [8] - Historically, Zacks 1 (Strong Buy) and 2 (Buy) stocks have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][8] Recent Stock Performance - Dynatrace shares have increased by 14.2% over the past four weeks, reflecting investor confidence in the company's earnings growth potential [9]

Group 1 - The previous investment thought on Dynatrace (NYSE: DT) was a buy rating due to attractive upside potential in the share price, supported by solid revenue and annual growth [1] - The investment approach focuses on long-term investments while incorporating short-term shorts to uncover alpha opportunities, emphasizing bottom-up analysis of individual companies' fundamental strengths and weaknesses [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Analyst's Disclosure: I/we have a beneficial long position in the shares of DT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any inv ...

Revenue Growth and Financial Performance - Annual revenue growth was 25% in 2023, 23% in 2024, and 19% in 2025 compared to the prior year[78] - The company expects its billings and revenue mix to vary over time, which could impact gross margin and cash flows[106] - Revenue from international customers represented 42% of total revenue for the fiscal year ended March 31, 2025[159] - The company recognized $351.9 million in revenue from deferred revenue at the beginning of the period for the three months ended March 31, 2025[164] - An intra-entity asset transfer of global economic rights to Switzerland resulted in a discrete tax benefit and related deferred tax asset of $320.9 million for the year ended March 31, 2025[155] Customer Retention and Acquisition - The company faces risks related to customer retention and the ability to attract new customers, which could adversely affect revenue growth[81] - The company needs to attract new customers and increase usage of its solutions to grow its business[95] - Customer retention rate has historically been strong, but some customers have chosen not to renew agreements, making long-term retention difficult to predict[96] - More than 30% of customer accounts transitioned to new sales representatives following a go-to-market strategy update in fiscal year 2025[96] Market and Competitive Landscape - The competitive landscape is evolving, with significant competition from larger companies and new entrants, which may lead to pricing pressure and reduced profit margins[99][100] - Market adoption of the company's solutions may not grow as expected, potentially harming business prospects[84] - The company relies on partnerships with strategic partners and hyperscalers like AWS, GCP, and Azure to drive sales growth, and any failure in these relationships could adversely affect business[107][110] Economic and Operational Risks - Economic uncertainties and reduced IT budgets may lead to longer sales cycles and lower revenue[86] - Sales cycles can be long and unpredictable, particularly during economic uncertainty, affecting the timing and size of transactions[113][114] - The company has experienced seasonal concentration of transactions, with the third and fourth fiscal quarters typically being the largest[114] Technology and Development - Significant investments have been made in application security and the development of core technologies like Grail, AutomationEngine, and AppEngine[89] - The complexity of developing new technology poses risks, as failure to meet market demands could harm business performance[89] - The company aims to evolve its AI capabilities to create an agentic AI platform that can operate autonomously[89] Security and Compliance - Security breaches and cyber-attacks pose significant risks, potentially leading to unauthorized access to sensitive data and harming the company's reputation[122] - The company has administrative, technical, and physical security measures in place, but evolving cyber threats may still lead to security breaches[126] - The company maintains a sufficient amount of insurance for data security risks, but coverage may not always be adequate for all potential losses[129] - Compliance with evolving privacy laws and regulations is complex and may result in increased costs and operational changes[147] - The company is subject to stringent data protection laws, including the GDPR, which can impose fines of up to €20 million or 4% of worldwide annual revenue for serious breaches[150] Human Resources and Management - The total employee headcount increased approximately 24% from March 31, 2023, to March 31, 2025, indicating significant growth in personnel[119] - The company relies on highly skilled personnel, and competition for talent, especially in Europe, is intense, which may lead to increased personnel costs[117] - Recent changes in senior management include hiring a new Chief Customer Officer, Chief Revenue Officer, and Chief Marketing Officer, which may impact business operations[115] Financial Position and Capital Management - As of March 31, 2025, the company had $399.2 million available under its $400 million Credit Facility, with $0.8 million of letters of credit outstanding[120] - The company announced a share repurchase program in May 2024, authorizing the purchase of up to $500 million of common stock, with $327.4 million remaining available as of March 31, 2025[190] - The company has never declared or paid dividends on its common stock and does not anticipate doing so in the foreseeable future[191] - The company may issue additional capital stock in the future, which could dilute existing stockholders' ownership interests[188] Legal and Intellectual Property Risks - The company faces significant risks from third-party IP infringement claims, which could result in substantial costs and harm to business operations[135] - Allegations of IP infringement may distract management and create uncertainty among customers, potentially affecting business performance[136] - Adverse outcomes from IP disputes could lead to substantial damages, redesign costs, or unfavorable licensing agreements, harming business results[137] - Protecting proprietary technology and IP rights is crucial for business success, but the company faces challenges in enforcement and unauthorized use[139] International Operations and Taxation - Approximately 68% of the company's employees were located outside of the United States as of March 31, 2025[159] - The company has suspended all business in Russia and Belarus, which may impact its ability to sell or export its platform in those regions[163] - The effective tax rate is likely to fluctuate due to the allocation of revenues and expenses to different jurisdictions[154] - Changes in tax laws and regulations could adversely affect the company and its stockholders[157] Market Risks - The company is exposed to market risks, primarily from fluctuations in foreign currency exchange rates and interest rates[358] - The company does not believe a 10% change in the value of the U.S. dollar against other currencies would materially affect its results of operations or cash flows[359] - The strengthening of the U.S. dollar generally reduces the reported amount of foreign-denominated cash and total revenues when translated into U.S. dollars[361] - The company has not engaged in hedging strategies for foreign currency transactions to date but may reassess this approach as international operations grow[359] Miscellaneous Risks - Catastrophic events, such as natural disasters or pandemics, could materially disrupt the company's business and impact customer spending[199] - Climate change may pose long-term risks, including increased operating costs due to compliance with new regulations[202] - The rapid evolution of AI technology may require significant resources to ensure compliance with applicable laws and regulations[150]