Dynatrace, the leading AI-powered observability platform, has just released its financial results for the fourth quarter and full year ended March 31, 2025. The company's total annual recurring revenue (ARR) reached $1,734 million, marking a 15% increase compared to the previous year. Additionally, total revenue for the fourth quarter was $445 million, representing a 17% increase, and subscription revenue was $424 million, showing an increase of 18%. For the full year, total revenue amounted to $1,699 million, a 19% increase, while subscription revenue reached $1,622 million, also showing a 19% increase.
The company achieved a GAAP operating margin of 11% and a non-GAAP operating margin of 29% for the full year. Moreover, Dynatrace reported GAAP income from operations of $43 million and non-GAAP income from operations of $118 million for the fourth quarter. For the full year, GAAP income from operations was $179 million, and non-GAAP income from operations was $494 million.
In terms of earnings per share (EPS), Dynatrace reported GAAP EPS of $0.13 and non-GAAP EPS of $0.33 for the fourth quarter. For the full year, GAAP EPS was $1.591 and non-GAAP EPS was $1.39. The company also generated a GAAP operating cash flow of $459 million and free cash flow of $431 million for the full year.
Dynatrace's business highlights include closing 15 deals greater than $1 million in annual contract value (ACV) in the quarter, with over 40% of its customer base and more than 60% of its ARR leveraging the platform subscription (DPS) licensing models. The company's consumption growth rates across the platform outpaced revenue growth, with DPS customers experiencing consumption growth rates twice that of SKU-based customers.
The company also emphasized its partnership evolution, signing a strategic collaboration agreement with Amazon Web Services (AWS) and providing early access for joint Google Cloud customers to its latest platform innovations. Dynatrace was recognized as a leader in the Forrester Wave™: AIOps Platforms, Q2 2025 report and in the 2025 GigaOm Radar Report for Cloud Observability.
Furthermore, Dynatrace repurchased 787,000 shares at an average price of $53.99 during the fourth quarter, amounting to a total expenditure of $43 million under its $500 million share repurchase program. Since the inception of the program in May 2024 through March 31, 2025, the company has repurchased 3.4 million shares for $173 million at an average price of $50.06. The market has reacted to these announcements by moving the company's shares 0.12% to a price of $50.54. For more information, read the company's full 8-K submission here.
