Dynatrace Inc (DT) Reports 24% Year-Over-Year Growth in Q2 FY2024

• Dynatrace Inc (NYSE:DT) reports a 24% year-over-year growth in ARR and total revenue in Q2 FY2024.

• The company's GAAP Operating Margin stands at 10% and Non-GAAP Operating Margin at 30%.

• Subscription Revenue increased by 26% on a constant currency basis.

• Dynatrace Inc (NYSE:DT) raises its FY2024 guidance following strong Q2 results.

On November 2, 2023, Dynatrace Inc (NYSE:DT), a leader in unified observability and security, released its financial results for the second quarter of fiscal 2024. The company reported exceeding the high end of guidance across all Q2 metrics, demonstrating strong top and bottom-line performance.

Financial Highlights

The company's total Annual Recurring Revenue (ARR) stood at $1,344 million, marking a 24% increase on a constant currency basis. Total Revenue also saw a 24% increase, amounting to $352 million. Subscription Revenue was reported at $334 million, up by 26% on a constant currency basis. The GAAP Income from Operations was $35 million, and Non-GAAP Income from Operations was $106 million. The company reported a GAAP EPS of $0.12 and a Non-GAAP EPS of $0.31, both on a dilutive basis.

Business Highlights

Dynatrace Inc (NYSE:DT) added Dynatrace Security Analytics to its existing application security capabilities, enabling customers to identify cyber-attacks, assess their impact, find the indicators of compromise (IOCs), and automatically trigger a response. The company also closed the acquisition of Rookout and is working to integrate their live debugging technology into the Dynatrace platform to enable development teams to improve the quality and security of their releases.

Financial Outlook

Based on the information available as of November 2, 2023, Dynatrace is issuing guidance for the third quarter and updating guidance for the full year fiscal 2024. The company now expects foreign exchange to be a headwind of approximately $5 million on ARR and a tailwind of approximately $7 million on revenue for fiscal 2024.

Conclusion

The strong performance in Q2 FY2024 has led Dynatrace Inc (NYSE:DT) to raise its guidance for FY2024. The company's focus on innovation and strategic partnerships has contributed to its growth and success. The company's commitment to providing advanced solutions to its customers is evident in its financial results and business highlights.

Explore the complete 8-K earnings release (here) from Dynatrace Inc for further details.

This article first appeared on GuruFocus.