Dynatrace Inc (DT) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Caution

GuruFocus.com11-08

Annual Recurring Revenue (ARR): $1.62 billion, up 19% year over year. Subscription Revenue: $400 million, up 20% year over year. Free Cash Flow Margin (Trailing 12-Month): 28%. Net Retention Rate: ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2481416148?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/JZCy5zpfNOOdVxeESBGDQg--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/4cc5f3a272baa60f4b5349538e5085d6","is_english":true,"pubTime":"2024-11-08 15:09","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2481416148","market":"us","top_or_hot":-1,"title":"Dynatrace Inc (DT) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Caution","media":"GuruFocus.com","content":"<div>\n<p>Annual Recurring Revenue (ARR): $1.62 billion, up 19% year over year.\nSubscription Revenue: $400 million, up 20% year over year.\nFree Cash Flow Margin (Trailing 12-Month): 28%.\nNet Retention Rate: ...</p>\n\n<a href=\"https://finance.yahoo.com/news/dynatrace-inc-dt-q2-2025-070934089.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Dynatrace Inc (DT) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Caution</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDynatrace Inc (DT) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Caution\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 15:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/dynatrace-inc-dt-q2-2025-070934089.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Annual Recurring Revenue (ARR): $1.62 billion, up 19% year over year.\nSubscription Revenue: $400 million, up 20% year over year.\nFree Cash Flow Margin (Trailing 12-Month): 28%.\nNet Retention Rate: ...</p>\n\n<a href=\"https://finance.yahoo.com/news/dynatrace-inc-dt-q2-2025-070934089.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DT","symbol_name":"Dynatrace Holdings LLC","start_time":0,"source_url":"https://finance.yahoo.com/news/dynatrace-inc-dt-q2-2025-070934089.html","article_id":"2481416148","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/JZCy5zpfNOOdVxeESBGDQg--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/4cc5f3a272baa60f4b5349538e5085d6"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481416148","pubTimestamp":1731049774,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Annual Recurring Revenue : $1.62 billion, up 19% year over year.Subscription Revenue: $400 million, up 20% year over year.Non-GAAP Net Income: $113 million, or $0.37 per diluted share.Free Cash Flow : $436 million, or 28% of revenue.New Logos Added: 143, with an average ARR per new logo of approximately $130,000.Share Repurchase: 835,000 shares for $40 million at an average share price of $47.90.GuruFocus has detected 8 Warning Signs with BYLTF.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Subscription revenue increased by 20% year over year, showcasing robust demand for Dynatrace's offerings.The company achieved a trailing 12-month free cash flow margin of 28%, reflecting strong cash generation capabilities.Dynatrace was recognized as a leader in the 2024 Gartner Magic Quadrant for observability platforms, marking the 14th consecutive time.Q: What changes have been made for reps covering accounts below the Global 500 segment?","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"DT":"Dynatrace Holdings LLC"},"translate_title":"Dynatrace Inc(DT)2025年第二季度收益看涨期权亮点：强劲的收入增长和战略谨慎","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DT":1},"content_text":"Annual Recurring Revenue (ARR): $1.62 billion, up 19% year over year.\nSubscription Revenue: $400 million, up 20% year over year.\nFree Cash Flow Margin (Trailing 12-Month): 28%.\nNet Retention Rate: 112%.\nGross Margin: 85%.\nNon-GAAP Operating Margin: 31%.\nNon-GAAP Net Income: $113 million, or $0.37 per diluted share.\nFree Cash Flow (Trailing 12-Month): $436 million, or 28% of revenue.\nNew Logos Added: 143, with an average ARR per new logo of approximately $130,000.\nShare Repurchase: 835,000 shares for $40 million at an average share price of $47.90.\n\n\nWarning! GuruFocus has detected 8 Warning Signs with BYLTF.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nAnnual Recurring Revenue (ARR) grew 19% year over year, indicating strong business momentum.\nSubscription revenue increased by 20% year over year, showcasing robust demand for Dynatrace's offerings.\nThe company achieved a trailing 12-month free cash flow margin of 28%, reflecting strong cash generation capabilities.\nDynatrace was recognized as a leader in the 2024 Gartner Magic Quadrant for observability platforms, marking the 14th consecutive time.\nThe company reported successful customer wins, including significant expansions with a top UK bank and a major US airline, highlighting its value proposition.\n\n Negative Points \n\nNet retention rate was 112%, slightly above expectations but indicating room for improvement in customer expansion.\nThe company maintained its ARR guidance despite strong Q2 performance, reflecting a cautious outlook for the second half.\nThere is a higher mix of less tenured sales representatives, which may impact sales productivity in the short term.\nNew logo acquisition was described as a bit light, suggesting challenges in attracting new customers.\nThe company is not expecting any material budget flush in December, indicating potential constraints in enterprise spending.\n\n Q & A Highlights \nQ: Can you explain the decision not to raise the ARR guidance despite a strong Q2 performance? A: Jim Benson, CFO: We had a strong Q2 and first half, with no disruption from go-to-market changes. However, we are being prudent due to many reps having new accounts for only six months and a higher mix of less tenured reps. The move to six-month sales compensation cycles also benefited us, but we want to remain cautious and not get ahead of ourselves.\nQ: How is the adoption curve for DPS customers across the portfolio, particularly for logs and application security? A: Jim Benson, CFO: Consumption on the platform is growing significantly faster than ARR, with emerging products like logs and application security seeing even faster growth. We have nearly 25% of our customer base on our logs products, and we are optimistic about gaining market share in this area.\nQ: What changes have been made for reps covering accounts below the Global 500 segment? A: Jim Benson, CFO: The number of accounts per rep in the top segment has been reduced to about four to five, allowing for deeper penetration. For accounts below that, the model remains more territory-oriented. We are also leveraging partners to gain broader penetration in these segments.\nQ: How are DPS customers performing in terms of expansion and consumption? A: Jim Benson, CFO: DPS customers are expanding at a significantly greater rate than non-DPS customers. They are leveraging more platform capabilities, leading to larger expansions. We believe DPS is the right contract vehicle for most customers.\nQ: Are you seeing more partner-sourced deals, and how are partners contributing to the sales funnel? A: Jim Benson, CFO: Historically, about a third of partner deals were sourced by partners, but this has increased to nearly half in the first half of the year. We aim to continue increasing partner-sourced deals to accelerate growth.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481416148"}