- Dynatrace reported results that were ahead of estimates. Revenues, EPS, and ARR were ahead of estimates and provided guidance that was also good.
- Shares are under pressure as ARR slowed to 36% (down from 38% Q/Q), and DT expects op margin to decline 200-300bps in F2023 due to R&D and S&M investments.
- DT is accelerating investments in S&M to intercept demand and into R&D to build out Application security modules that are in high demand.
- DT continues to add customers quickly, minimize churn and upsell rapidly. NRR continues to remain above 120%+ for the 15th consecutive quarter, providing visibility into revenue.
- DT has one of the best observability platforms in the industry. The stock sell-off is overdone, presenting patient investors a great buying opportunity.
For further details see:
Dynatrace - Much Ado About ARR Slowdown; Buy Shares On Weakness