FX.co ★ Dynatrace Q1 Profit Slips, Despite Revenue Growth

Dynatrace, Inc. (DT) reported a marked decline in fourth-quarter earnings on Wednesday, despite a growth in revenue compared to the previous year.

The company unveiled a $500 million share repurchase initiative.

Quarterly net income stood at $37.944 million, or $0.13 per share, down from $80.29 million, or $0.27 per share, recorded a year earlier. On an adjusted basis, earnings were $89.40 million, or $0.30 per share.

Analysts polled by Thomson Reuters had, on average, anticipated the company to earn $0.27 per share, excluding any special items.

Revenue for the quarter rose to $380.85 million, compared to $314.48 million in the same period last year, surpassing Wall Street's expectations of $375.28 million.

Looking forward to the first quarter, Dynatrace anticipates adjusted earnings to be within the $86-$89 million range, or $0.29-$0.30 per share, aligning with analysts' expectations of $0.30 per share.

Total revenue for the upcoming quarter is forecasted to range between $391-$393 million, reflecting a 17-18 percent increase from the previous year.

For fiscal year 2025, the company projects adjusted earnings between $383-$392 million and earnings per share in the range of $1.26-$1.29, whereas the market expectation is $393.58 million.

Revenue for fiscal 2025 is expected to be between $1.644 billion and $1.658 billion, marking a 15-16 percent year-over-year increase. Wall Street anticipates full-year earnings of $1.17 per share on revenue of $1.43 billion.