Dynatrace (DT) Reports Earnings Tomorrow. What To Expect

Radek Strnad /
2022/05/17 7:02 am EDT

Application performance monitoring software provider Dynatrace (NYSE:DT) will be reporting earnings tomorrow before market hours. Here's what you need to know.

Last quarter Dynatrace reported revenues of $240.7 million, up 31.6% year on year, beating analyst revenue expectations by 2.67%. It was an ok quarter for the company, with a strong top-line growth, and guidance for the next quarter in line with analysts' expectations.

Is Dynatrace buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Dynatrace's revenue to grow 25.4% year on year to $246.5 million, slowing down from the 30.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

Dynatrace Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.58%.

Looking at Dynatrace's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Datadog delivered top-line growth of 82.8% year on year, beating analyst estimates by 7.46% and New Relic reported revenues up 19.1% year on year, exceeding estimates by 0.3%. Datadog traded down 11.4% on the results, while New Relic was flat on the results. Read our full analysis of Datadog's results here and New Relic's results here.

The technology sell-off has been putting pressure on stocks since November and software stocks have not been spared, with share price down on average 21.2% over the last month. Dynatrace is down 19% during the same time, and is heading into the earnings with analyst price target of $59.7, compared to share price of $33.2.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.