- Dynatrace reported an excellent quarter and issued guidance that was ahead of estimates for both F2Q22 and FY2022. Dynatrace beat Revenue, EPS, and ARR estimates easily and delivered healthy profits.
- Management noted that Digital transformation (DX) continues to drive its business and noted that DX is increasing the complexity of IT infrastructure, and only automation can manage the complexity.
- Dynatrace added 135 new customers and expects revenue to grow above 30% for the next several years driven by net new logo additions and expansion within the existing client base.
- Dynatrace has the best observability platform in the industry. We expect Dynatrace to win with the most challenging use cases and DDOG/SPLK/ESTC to win in less complicated use cases.
- We urge investors to buy shares of DT at current levels, given DT is profitable, growing very fast, has reasonable valuation, and is the most capable platform in the industry.
For further details see:
Dynatrace - Trading At A Discount Despite Profitable Growth