Investors should consider adding growth stocks to their portfolio to complement the blue chip stocks that dominate major market indexes. Tech companies with excellent growth prospects and strong products can deliver returns that outpace the market over the long term, but it's important to buy shares before they launch to expensive valuations. If you're making contributions to a Roth IRA for last year, these two stocks could be a great way to deploy $1,000 for long-term growth.DynatraceDynatrace (DT -1.92%) ...

After a not-so-happy couple of years of a bear market, cloud computing stocks are so back in 2024. As artificial intelligence (AI) hype ratchets up, tech has been fast on the rise in the first two months of the year.But in reality, cloud software never really went anywhere. Throughout the last couple of years of heightened investor worry, global spending on cloud computing actually kept rising. And according to researcher Gartner, end-user spending on cloud services is expected to home in on $680 billion in ...

BRAZIL - 2024/02/02: In this photo illustration, the Dynatrace, Inc. logo is displayed on a ... [+] smartphone screen. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images Since August 2023, when I last wrote about Dynatrace DT — the Waltham, Mass.-based provider of software observability services — has experienced an 8% increase in its stock (lagging the Nasdaq’s 14.5% gain).Why — despite a 23% rise in the tech company’s revenue for the qu ...

WALTHAM, Mass.--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leader in unified observability and security, today announced that BMO, North America’s eighth largest bank by assets, is using the Dynatrace® platform to scale its digital capabilities and deliver best-in-class experiences to customers worldwide. As demand for digital interactions increases, BMO has reimagined traditional services and is optimizing operating efficiencies to enhance customer loyalty. To do this, the bank works with Dynatrace. The ...

Financial Data and Key Metrics Changes - Total Annual Recurring Revenue (ARR) for Q3 was $1.43 billion, an increase of $263 million year-over-year, representing 21% growth [7] - Total revenue for Q3 was $365 million, up 21% year-over-year, exceeding guidance by $6 million [13] - Subscription revenue for Q3 was $348 million, up 23% year-over-year, exceeding guidance by $8 million [13] - Non-GAAP operating income for Q3 was $105 million, resulting in a non-GAAP operating margin of 29%, exceeding guidance by 200 basis points [14] - Non-GAAP net income was $96 million, or $0.32 per diluted share, exceeding guidance by $0.04 [15] - Free cash flow for Q3 was $67 million, with a trailing 12-month free cash flow of $340 million, representing 25% of revenue [16] Business Line Data and Key Metrics Changes - Net new ARR on a constant currency basis was $70 million in Q3, with 209 new logos added to the Dynatrace platform [8] - Average ARR per new logo was approximately $140,000, consistent with Q2 and up 17% year-over-year [9] - The gross retention rate remained in the mid-90s, contributing to a net retention rate of 113% in Q3 [10] - Over 150 DPS deals were closed globally in Q3, bringing total DPS customers to roughly 400, representing more than 10% of the customer base [12] Market Data and Key Metrics Changes - The number of deals in the pipeline greater than $1 million of ACV increased by 39% compared to the same quarter last year [18] - The demand environment remains healthy, with a growing number of larger and more strategic deals related to observability architecture and vendor consolidation [17] Company Strategy and Development Direction - The company plans to continue investing strategically in go-to-market areas and R&D innovation to capture market opportunities and drive ongoing leadership [4] - The acquisition of Runecast is expected to enhance Dynatrace's contextual security protection in analytics, addressing risks in hybrid and multi-cloud ecosystems [2] - The company aims to balance growth, profitability, and free cash flow while maintaining a focus on tool consolidation and automation [4][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for automated observability and application security solutions, highlighting the durability of the business model [3][6] - The company is building incremental prudence into its near-term guidance due to the timing variability of larger strategic deals [19][20] - The demand environment remains healthy, with no fundamental changes noted, despite the need for increased prudence in guidance [51] Other Important Information - The company raised its revenue guidance for the full year to approximately $1.422 billion to $1.427 billion, representing 22% growth year-over-year [22] - Non-GAAP EPS guidance was raised to $1.16 to $1.18 per diluted share, based on a diluted share count of 299 million to 300 million shares [25] - The company expects total revenue for Q4 to be between $372 million and $377 million, with subscription revenue between $353 million and $358 million [27] Q&A Session Summary Question: Insights on top of funnel and pipeline activity - Management noted that pipeline growth continues to exceed ARR growth, with increasing deal sizes across the board [32] Question: Factors affecting net ARR growth - Management indicated that pipeline coverage is growing, and higher conversion rates are needed, which will depend on macroeconomic improvements and sales execution [36] Question: Impact of DPS on net retention rate - Management expects to see the impact of DPS on net retention rates in fiscal '25, as customers on DPS contracts consume faster [46] Question: Timing of large deals and pipeline health - Management confirmed that while some deals may push out of quarters, the overall health of the pipeline remains strong, with a significant increase in larger deals [69] Question: Competitive landscape and tool consolidation - Management highlighted that competitors like AppDynamics and New Relic are sources of new logos, with ongoing opportunities due to market disruptions [84] Question: Strategic view on Runecast and cloud security - Management emphasized that the acquisition of Runecast will enhance vulnerability analytics capabilities and is part of a broader push into cloud security [99][100]

For the quarter ended December 2023, Dynatrace (DT) reported revenue of $365.1 million, up 22.7% over the same period last year. EPS came in at $0.32, compared to $0.25 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $357.64 million, representing a surprise of +2.09%. The company delivered an EPS surprise of +14.29%, with the consensus EPS estimate being $0.28.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Dynatrace (DT) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.29%. A quarter ago, it was expected that this software intellegence company would post earnings of $0.27 per share when it actually produced earnings of $0.31, delivering a surprise of 14.81%.Over the last four quarters ...

Net New ARR Growth Net New ARR Growth @ CC (YoY)2 $82 2) Subscription & Total Revenue Growth at CC 31% 32% 30% 29% 27% 25% 24% 31% 32% 29% 29% 28% 27% FY21 Constant curnery growth when using exchange rates from the same quater in the parte ri the pirio rea. See be bependix for offinition. Total revenue indudues subsciption, Efficient Model with Best-in-Class Gross Margins¹ Non-GAAP Gross Profit Margin² These are non-GAAP financial measures. See the Appendix for reconciliations of GAAP to non-GAAP financial ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-39010 Dynatrace, Inc. (Exact name of Registrant as specified in its charter) Delaware 47-2386428 (State or other jurisdictio ...

WALTHAM, Mass.--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leader in unified observability and security, today announced it has extended its analytics and automation platform to provide holistic observability and security for large language models (LLMs) and generative AI-powered applications. This enhancement to the Dynatrace® platform enables organizations worldwide to embrace generative AI confidently and cost-effectively as part of their focus on increasing innovation, productivity, and revenue. Dyna ...