- Dynatrace delivered a solid quarter beating on all metrics – revenue, EPS, ARR, and cash flow. The company also raised guidance significantly. The stock is up north of 10%.
- Dynatrace has one of the newest and most efficient software-intelligence and automation platforms in the industry, created to address hybrid multi-cloud, serverless, microservices, and container environments.
- It is well-positioned to grab market share in the fast-growing and fragmented monitoring market (applications, infrastructure, network, user experience, and logs) that is consolidating to a single tool.
- We expect the company to grow north of 25%+ for the next three years at a minimum, the net expansion rate to remain 120%+, and margins to expand via leverage.
- Estimates are conservative, and we expect beats and raises to continue. Buy the stock opportunistically on any future weakness.
For further details see:
Dynatrace: Becoming Killer App For Digital Transformation