Dynatrace earnings and revenue for its fiscal third quarter topped analyst estimates. Dynatrace stock rose as guidance came in above Wall Street targets.
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Waltham-Mass.-based Dynatrace (DT) said it earned an adjusted 17 cents a share, up 70% from a year earlier. The enterprise software maker’s revenue climbed 28% to $182.9 million.
A year earlier, Dynatrace said it earned 10 cents a share on revenue of $143.3 million.
Analysts expected Dynatrace earnings of 13 cents a share on revenue of $172.3 million for the period ended Dec. 31.
For the current quarter ending in December, Dynatrace forecast profit in a range of 13-14 cents a share with revenue of $191 million. Analysts had estimated earnings of 12 cents a share on revenue of $176.4 million.
Dynatrace stock rose 4.7% to near 46 in early trading on the stock market today.
In addition, the software company trades below a proper entry point of 48.95. Heading into the Dynatrace earnings, the stock owned a Relative Strength Rating of 61 out of a possible 99.
Dynatrace Earnings: Recurring Revenue A Key Metric
The software maker’s computer network monitoring tools measure and analyze the performance of business-critical applications. Analysts say the ongoing coronavirus pandemic has forced companies to move apps to cloud computing platforms, increasing demand for Dynatrace monitoring tools.
One key financial metric for Dynatrace stock is annual recurring revenue, or ARR. Further, Dynatrace said ARR rose 35% to $722 million vs. estimates of $681.3 million.
Also, Dynatrace’s subscription revenue rose 33% to 170.3 million vs. estimates of $160.8 million.
Also, Dynatrace went public Aug. 1, 2019 backed by private equity firm Thoma Bravo. Further, the Dynatrace IPO raised $570 million, with shares priced at 16.
In addition, Dynatrace competes in the application performance monitoring market versus the AppDynamics unit of Cisco Systems (CSCO), Datadog (DDOG), New Relic (NEWR)and others.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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