Dynatrace on Wednesday reported fiscal fourth-quarter earnings and revenue that met Wall Street targets. The company announced a $500 million buyback for Dynatrace stock.
On the stock market today, Dynatrace stock rose 1.9% to 47.30 in morning trades.
Waltham-Mass.-based Dynatrace reported earnings before the market open.
For the quarter ending March 31, Dynatrace earnings were 30 cents a share on an adjusted basis, down a penny from a year earlier. Revenue climbed 21% to $381 million, the company said.
Dynatrace Stock: More Large Deals In Pipeline
Analysts had estimated profit of 30 cents on revenue of $380.8 million.
Annual recurring revenue, or ARR, is a key financial metric for many software companies. Dynatrace said Q4 ARR from subscriptions rose 21% to $1.5 billion.
"Management noted Dynatrace closed a record number of seven-figure deals in the quarter," said RBC Capital analyst Matthew Hedberg in a report.
For full-year fiscal 2025, Dynatrace predicted earnings in a range of $1.26 per share to $1.29 per share. Analysts had projected EPS of $1.32.
The software maker forecast revenue of $1.651 billion at the midpoint of guidance, below estimates of $1.681 billion.
Heading into the Dynatrace earnings report, the software stock had retreated 14% in 2024.
The software maker's computer network monitoring tools measure and analyze the performance of business-critical applications. In the "observability" market, Dynatrace and others also monitor application performance over cloud-computing infrastructure.
Also, Dynatrace owned a Relative Strength Rating of 21 out of a best-possible 99, according to IBD Stock Checkup.
Further, Dynatrace competes with Datadog and others.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
