NEW YORK - Dynatrace Inc. (NYSE:DT) shares jumped 8.2% in pre-market trading on Wednesday after the software intelligence company reported fiscal first-quarter results that exceeded analyst estimates.
The Waltham, Massachusetts-based company posted adjusted earnings per share of $0.33 for the quarter ended June 30, beating the consensus forecast of $0.29. Revenue rose 20% YoY to $399 million, surpassing expectations of $392.22 million.
"We are pleased with our first quarter performance, which once again exceeded guidance across all our key metrics," said Rick McConnell, Chief Executive Officer of Dynatrace.
Annual recurring revenue (ARR) grew 20% YoY on a constant currency basis to $1.54 billion. Subscription revenue increased 21% to $381.6 million.
The company maintained its full-year fiscal 2025 guidance, forecasting revenue of $1.64 billion to $1.66 billion, representing 15-16% growth. It expects adjusted EPS of $1.26 to $1.29.
For the fiscal second quarter, Dynatrace projects revenue of $404 million to $407 million and adjusted EPS of $0.32 to $0.33.
The strong results and outlook reflect continued demand for Dynatrace's observability and security platform as companies seek to optimize their software performance. The company highlighted its "power of 3" AI approach combining predictive, causal and generative capabilities as a key differentiator.
With the positive earnings surprise driving shares higher, investors appear optimistic about Dynatrace's growth trajectory and competitive positioning in the observability market.
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