Dynatrace (DT) Stock Trades Up, Here Is Why

Radek Strnad /
2023/05/17 9:00 am EDT

What Happened:

Shares of application performance monitoring software provider Dynatrace (NYSE:DT) jumped 9.76% in the after-market session after the company reported fourth-quarter results that exceeded analysts' estimates for key topline metrics, including revenue, subscription revenue and annual recurring revenue (ARR). Profitability metrics also came in strong, with operating income and free cash flow surpassing estimates. In addition, earnings per share (EPS) beat by an impressive 17%. Moving ahead, revenue guidance for the next quarter and full year were above Consensus. However, the EPS guidance for the next quarter and full year were roughly in line. Overall, it was a solid quarter, with the provided guidance indicating the company's ability to generate profits and cash flows in the near term.

What is the market telling us:

Dynatrace's shares are quite volatile and over the last year have had 19 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Dynatrace is up 30% since the beginning of the year. Investors who bought $1,000 worth of Dynatrace's shares at the IPO in July 2019 would now be looking at an investment worth $2,090.

Is now the time to buy Dynatrace? Access our full analysis of the earnings results here, it's free.