EXHIBIT 99.1 dynatrace Dynatrace Reports First Quarter Fiscal Year 2025 Financial Results Exceeds high end of guidance across all metrics Delivers ARR growth of 20% year-over-year on a constant currency basis Achieves GAAP Operating Margin of 11% and Non-GAAP Operating Margin of 29% WALTHAM, Mass., August 7, 2024 - Dynatrace (NYSE: DT), the leader in end-to-end observability and security, today announced financial results for the first quarter of fiscal 2025 ended June 30, 2024. "We are pleased with our fir ...

Core Viewpoint - Dynatrace has shown revenue growth but faces challenges with declining Net Retention Rate and weak FY25 guidance, leading to a cautious outlook on its stock performance [2][4][8] Financial Performance - For FY24, Dynatrace reported revenue of $1.43 billion, a 23% year-over-year increase, and non-GAAP operating income of $398 million, growing 36% year-over-year [3] - The company expects Q1 FY25 revenue of approximately $392 million, representing close to 20% year-over-year growth, with non-GAAP operating income projected at $106.5 million, a 15.7% increase [5] Strategic Focus - Dynatrace is concentrating on winning large customers, achieving 18 seven-figure deals in Q4 FY24, with an average new logo land size of $140,000 [3] - The average ARR per customer has approached $400,000, indicating deeper adoption of its solutions [3][5] Guidance and Expectations - Management has projected FY25 revenue growth of 15-16%, significantly lower than previous estimates, with a non-GAAP operating margin expectation of 28% [4][6] - The company anticipates generating $1.65 billion in revenue for FY25, with a growth rate of 15.5% [5][7] Key Metrics to Monitor - Investors should focus on the number of large customer wins and average deal size, as well as the stabilization of the Net Retention Rate, currently at 111% [5][6] - The decline in Net Retention Rate from 119% year-over-year and 113% sequentially is a concern for future growth [4][8] Market Context - The broader software industry is experiencing uncertainty, with 56% of software companies guiding below consensus in the current earnings season [5]

Core Insights - Dynatrace (DT) is expected to report quarterly earnings of $0.29 per share, a 7.4% increase year-over-year, with revenues projected at $392.2 million, reflecting a 17.8% year-over-year growth [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1][2] Revenue Projections - Analysts forecast 'Revenues- Services' to be $17.11 million, showing a year-over-year increase of 4.1% [3] - 'Revenues- Subscriptions' are projected to reach $375.13 million, indicating an 18.5% year-over-year growth [4] Annual Recurring Revenue and Gross Profit - The average prediction for 'Annual Recurring Revenue (ARR)- Total' is $1.53 billion, up from $1.29 billion in the same quarter last year [4] - Analysts expect 'Gross profit- Subscriptions' to be $328.90 million, compared to $273.55 million from the previous year [4] Stock Performance - Over the past month, Dynatrace shares have returned -5.4%, while the Zacks S&P 500 composite has seen a -0.4% change [5] - Currently, Dynatrace holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5]

Company Overview - Dynatrace is set to announce its earnings on August 7, 2024, with an expected EPS of $0.29, reflecting a 7.41% increase from the prior-year quarter [1] - The Zacks Consensus Estimate for revenue is projected at $392.2 million, indicating a 17.82% growth compared to the same period last year [1] - For the annual period, the anticipated earnings are $1.28 per share and revenue of $1.65 billion, representing increases of 6.67% and 15.59%, respectively [9] Stock Performance - Shares of Dynatrace have decreased by 0.64% over the past month, outperforming the Computer and Technology sector's decline of 5.32% and the S&P 500's drop of 1.16% [4] - The stock closed at $44.30, with a daily increase of 1.3%, surpassing the S&P 500's daily gain of 1.11% [8] Valuation Metrics - Dynatrace is currently trading at a Forward P/E ratio of 34.24, which is higher than the industry average of 28.04, suggesting that Dynatrace is trading at a premium [6] - The company has a PEG ratio of 3.65, compared to the industry average PEG ratio of 3.21 [11] Industry Context - The Computers - IT Services industry, which includes Dynatrace, holds a Zacks Industry Rank of 93, placing it in the top 37% of over 250 industries [3] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Shares of Dynatrace have gained 1.94% over the past month, outperforming the Computer and Technology sector's gain of 1.25% but lagging behind the S&P 500's gain of 4.43% [1] - The latest trading session saw Dynatrace ending at $43.32, reflecting a -1.77% adjustment from the previous day's close, which lagged the S&P 500's 1.39% loss on the same day [7] Financial Estimates - The Zacks Consensus Estimates forecast earnings of $1.28 per share and revenue of $1.65 billion for the year, indicating changes of +6.67% and +15.59%, respectively, compared to the previous year [2] - For the upcoming financial results, Dynatrace is anticipated to report an EPS of $0.29, marking a 7.41% rise compared to the same quarter of the previous year, with projected net sales of $392.2 million, up 17.82% from the year-ago period [8] Valuation Metrics - Dynatrace's current Forward P/E ratio is 34.53, which represents a premium compared to its industry's average Forward P/E of 27.64 [4] - The company has a PEG ratio of 3.68, compared to the industry's average PEG ratio of 3.33 [11] Industry Context - Dynatrace operates within the Computers - IT Services industry, which is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 99, placing it within the top 40% of over 250 industries [5] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [12] Analyst Estimates - Recent changes to analyst estimates for Dynatrace reflect evolving short-term business trends, with positive estimate revisions interpreted as a good sign for the company's business outlook [9] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Dynatrace as 3 (Hold), with a 0.19% rise in the Zacks Consensus EPS estimate over the past month [10]

In the latest trading session, Dynatrace (DT) closed at $44.74, marking a +1.66% move from the previous day. This move outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 0.71%. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.28 per share and revenue of $1.65 billion. These totals would mark changes of +6.67% and +15.58%, respectively, from last year. The Zacks Rank system ranges from #1 (Strong Buy ...

When other investors hear low-priced growth stocks, they may think about a specific price target that allows them to accumulate a significant number of shares for a modest capital investment. Still, others might define a low price as a stock trading near its 52-week low. United Parcel Service (NYSE:UPS) is down 22.2% in the last 12 months and is near its 52-week low. That's not surprising because the package delivery company is reporting weak volume in all of its core areas. The company's debt is also at 10 ...

UKRAINE - 2024/01/19: In this photo illustration, the Dynatrace logo is seen on a smartphone and in ... [+] the background. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images While many companies are talking about generative AI, very few — notably Nvidia, SuperMicro, and Vertiv — are getting enough of a revenue boost from supporting the AI chatbots to reward investors. There are many software companies now aiming to deploy generative AI in ...

Core Viewpoint - Dynatrace has an average brokerage recommendation (ABR) of 1.50, indicating a consensus leaning towards a Strong Buy to Buy rating based on 30 brokerage firms' recommendations [1][10]. Brokerage Recommendations - The ABR reflects a strong positive bias, with 22 out of 30 recommendations classified as Strong Buy, accounting for 73.3% of total recommendations [10]. - The Zacks Rank, which is a separate quantitative model, provides a different perspective on stock performance, with Dynatrace currently holding a Zacks Rank of 3 (Hold) due to unchanged earnings estimates [9][16]. Earnings Estimates - The Zacks Consensus Estimate for Dynatrace's earnings for the current year remains at $1.28, unchanged over the past month [8]. - The stability in earnings estimates suggests that the stock may perform in line with broader market trends in the near term [16]. Analyst Behavior - Analysts from brokerage firms tend to exhibit overly optimistic ratings, often issuing more favorable recommendations than warranted by their research [14]. - The disparity between ABR and Zacks Rank highlights the importance of using multiple indicators for investment decisions, as brokerage recommendations may not always align with retail investors' interests [11][12].

Core Insights - Dynatrace (DT) reported a 21% year-over-year increase in total annual recurring revenues (ARR) for the fourth quarter of fiscal 2024, reaching $1.5 billion [1][6] - The company is enhancing its hybrid cloud security and observability capabilities through partnerships, including a recent collaboration with Gigamon and Trace3 [1][9] Revenue Growth - The projected revenues for the first quarter of fiscal 2025 are estimated to be between $391 million and $393 million, indicating a year-over-year increase of 17-18% [13] - The Zacks Consensus Estimate for first-quarter revenues stands at $392.12 million, reflecting a growth of 17.79% compared to the previous year [13] Strategic Partnerships - Dynatrace expanded its partnership with Google Cloud to enhance AI-powered analytics and automation for cloud-native environments, aimed at accelerating global digital transformation [3] - The integration of Kubernetes Security Posture Management (KSPM) capabilities into Dynatrace's platform enhances security and compliance monitoring for cloud-native applications [4] - Collaborations with major partners like Google Cloud, Amazon Web Services (AWS), and Lloyds Banking Group are driving growth and expanding Dynatrace's market presence [9][10][11] Product Development - The Power of 3 Cloud Integration Initiative aims to improve customers' ability to secure and manage hybrid cloud infrastructures [7] - By integrating advanced observability and security capabilities, organizations can detect vulnerabilities, monitor threats, and optimize performance [8] Market Performance - Despite a strong portfolio and expanding partner base, Dynatrace's stock has declined 16.1% year-to-date, compared to a 9.8% growth in the Zacks Computer & Technology sector [12]