Here's What Key Metrics Tell Us About Dynatrace (DT) Q2 Earnings
For the quarter ended September 2023, Dynatrace (DT) reported revenue of $351.7 million, up 25.9% over the same period last year. EPS came in at $0.31, compared to $0.22 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $344.61 million, representing a surprise of +2.06%. The company delivered an EPS surprise of +14.81%, with the consensus EPS estimate being $0.27.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dynatrace performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Annual Recurring Revenue (ARR)- Total: $1.34 billion versus the five-analyst average estimate of $1.34 billion.
Revenues- Services: $17.20 million compared to the $17.95 million average estimate based on six analysts. The reported number represents a change of -4.5% year over year.
Revenues- Subscriptions: $334.50 million versus the six-analyst average estimate of $326.49 million. The reported number represents a year-over-year change of +28%.
Gross profit- Services: $1.53 million compared to the $1.98 million average estimate based on three analysts.
Gross profit- Subscriptions: $289.71 million versus $289.06 million estimated by three analysts on average.
View all Key Company Metrics for Dynatrace here>>>
Shares of Dynatrace have returned -4.9% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dynatrace, Inc. (DT) : Free Stock Analysis Report
