Dynatrace (DT) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - Dynatrace reported revenue of $436.17 million for the quarter ended December 2024, reflecting a year-over-year increase of 19.5% and a surprise of +2.36% over the Zacks Consensus Estimate of $426.11 million [1] - The company's EPS for the quarter was $0.37, up from $0.32 in the same quarter last year, resulting in an EPS surprise of +12.12% compared to the consensus estimate of $0.33 [1] Financial Performance Metrics - Annual Recurring Revenue (ARR) totaled $1.65 billion, slightly below the average estimate of $1.66 billion from nine analysts [4] - Service revenues were reported at $18.96 million, exceeding the nine-analyst average estimate of $17.85 million, with a year-over-year change of +12.9% [4] - Subscription revenues reached $417.21 million, surpassing the nine-analyst average estimate of $408.64 million, marking a year-over-year increase of +19.8% [4] - Gross profit from services was $0.82 million, compared to the average estimate of $0.55 million from five analysts [4] - Gross profit from subscriptions was reported at $356.54 million, slightly below the five-analyst average estimate of $357.90 million [4] Stock Performance - Dynatrace shares have returned +5.5% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]