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Dynatrace (DT) Reports Earnings Tomorrow. What To Expect


Radek Strnad /
2023/01/31 4:21 am EST

Application performance monitoring software provider Dynatrace (NYSE:DT) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Last quarter Dynatrace reported revenues of $279.3 million, up 23.4% year on year, beating analyst revenue expectations by 2.22%. It was a slower quarter for the company, with revenue guidance for the next quarter and full-year guidance 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 18.2% year on year to $284.7 million, slowing down from the 31.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 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 2.96%.

Looking at Dynatrace's peers in the software development segment, only F5 Networks has so far reported results, delivering top-line growth of 1.93% year on year, missing analyst estimates by 0.06%. The stock was up 1.46% on the results. Read our full analysis of F5 Networks's earnings results here.

There has been positive sentiment among investors in the software, with the stocks up on average 12.3% over the last month. Dynatrace is up 2.16% during the same time, and is heading into the earnings with analyst price target of $43.10, compared to share price of $39.18.

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.