Dynatrace (DT) Exceeds Fiscal Year 2024 Metrics

By Bobby Samwell • Wednesday, May 15 11:09 • Permanent Link

Dynatrace (NYSE: DT) has released its financial results for the fourth quarter and full year fiscal 2024, and the numbers are impressive. The company exceeded the high end of its guidance across all fiscal year 2024 metrics.

In the fourth quarter of fiscal 2024, Dynatrace reported a total annual recurring revenue (ARR) of $1,504 million, marking a 21% increase compared to the same period in fiscal 2023. Total revenue for the quarter was $381 million, a 21% increase year-over-year. Subscription revenue also saw substantial growth, reaching $360 million, a 23% increase compared to the fourth quarter of fiscal 2023.

The company's GAAP income from operations for the fourth quarter of fiscal 2024 was $23 million, while non-GAAP income from operations stood at $95 million. Furthermore, Dynatrace reported GAAP earnings per share (EPS) of $0.13 and non-GAAP EPS of $0.30 on a dilutive basis.

For the full fiscal year 2024, Dynatrace achieved a total revenue of $1,431 million, representing a 23% increase compared to fiscal 2023. Subscription revenue for the fiscal year reached $1,359 million, marking a 25% increase year-over-year.

The company's GAAP income from operations for the full fiscal year 2024 was $128 million, with a non-GAAP income from operations of $398 million. Additionally, Dynatrace reported GAAP EPS of $0.52 and non-GAAP EPS of $1.20 on a dilutive basis.

Dynatrace's business highlights for the period included closing a record 18 deals greater than $1 million in annual contract value, with 15 of these deals being in collaboration with partners. The company was also recognized as a leader in the 2024 GigaOm Radar Report for cloud observability solutions and received the Customers' Choice distinction in the 2024 Gartner Peer Insights Voice of the Customer for digital experience monitoring report.

In addition to its strong financial performance, Dynatrace also announced a $500 million share repurchase program, demonstrating its confidence in the business and future growth prospects.

Looking ahead, Dynatrace issued guidance for the first quarter and full year fiscal 2025. The company expects continued growth, with a non-GAAP operating margin of 27% to 27.5% for the first quarter and a non-GAAP operating margin of 28% for the full fiscal year 2025.

As a result of these announcements, the company's shares have moved -0.6% on the market, and are now trading at a price of $46.14. For more information, read the company's full 8-K submission here.

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