JohnCM
4 years ago
Dynatrace Delivers AI-Powered Observability for the ARM Platform
June 09 2020 - 08:00AM
Business Wire Print
Enabling organizations to observe, optimize and remediate microservices and cloud applications at scale
Software intelligence company Dynatrace (NYSE: DT), today announced it has extended its advanced observability capabilities to cloud and data center environments running on the Linux ARM platform. These enhancements to Dynatrace® reflect increasing demand from enterprise IT teams for containers and microservices, as well as their growing adoption of ARM-based servers as an efficient and cost-effective platform for cloud-native environments. To avoid wasting time and resources on manual configuration, teams need continuous automation to self-discover and automatically instrument changes in their environment, and to capture all observability data in real time.
“In modern IT environments, containers, cloud applications, and microservices can come and go in seconds. Teams can’t waste time attempting to maintain observability,” said Steve Tack, SVP of Product Management, Dynatrace. “That’s why we’re extending Dynatrace’s advanced observability and continuous automation to environments running on ARM. Unlike alternative solutions, that don’t support modern architectures or require special add-ons and manual effort to instrument and maintain, Dynatrace on ARM just works. There’s no configuration or scripting required, and no need to know which apps or cloud platforms teams are running. Customers using Dynatrace on ARM experience the fast time to value they’ve come to expect from us.”
The Dynatrace® platform has a rich history of providing automatic and continuous observability for dynamic multicloud environments. Dynatrace uses this observability data to create and continuously update a complete entity map, ensuring an always-accurate view of how everything in an IT environment is interconnected, including the millions or even billions of dependencies across the full stack. As a result, the Dynatrace AI engine, Davis™, does not need to learn or be trained on the environment, because the entity map details what it needs to know. Davis then helps teams by providing precise answers in real time and prioritizing what matters, which reduces noise and enables people to focus on innovating instead of problem solving.
Key enhancements to the Dynatrace® platform include advanced observability for Linux running on the ARM 64-bit architecture, across infrastructure, networks, applications, containers and microservices, and including code-level visibility into application languages like Java, NGINX, and Node.js. In addition, Dynatrace enables continuous automation spanning the full stack and without manual configuration – from discovery and instrumentation, to baselining, anomaly detection, root cause analysis, and auto-remediation. With these enhancements, Dynatrace adds to its extensive coverage for server architectures, which also includes Microsoft Windows, Linux x86/x64, AIX, PPCLE, Linux on Z, and z/OS.
JohnCM
4 years ago
App Monitoring Software Maker Dynatrace Rides Cloud Computing To IPO
12/03/2019
IBD
Went public Aug. 1 at 16 a share and hit intraday high of 27.48 a week later
Shares currently in a cup formation with stock nearing entry point of 27.58
Depth of cup formation was 38%, but IPO came during a market correction
Composite Rating
64/99
Dynatrace (DT) is the IBD Stock of the Day, as its path to Wall Street owes much to the rise of cloud computing, not to mention a buyout five years ago that ultimately led to its creation and the recent initial public offering of Dynatrace stock.
Though Dynatrace stock has a short history on the public markets, the company has a fairly lengthy record in the so-called application performance monitoring, or APM, market. Waltham-Mass.-based Dynatrace has been around long enough to lead the APM market with around 13% share, followed by Cisco Systems (CSCO) at 12%, New Relic (NEWR) at 11% and Splunk (SPLK) at 6%, according to a Jefferies report published in August.
Dynatrace's roots were in supporting a customer's internal, on-premise infrastructure, offering software tools that measure and analyze the performance of business-critical applications. Unlike some legacy APM players, though, Dynatrace migrated its software tools to a cloud-computing platform.
With competition on the rise, supporting both on-premise and cloud-based APM gives Dynatrace a broader appeal to customers, analysts say. It's steadily converting on-premise customers to subscription-based cloud products.
William Blair analyst Bhavan Suri says the APM market has shifted to cloud-computing specialists.
"Although traditional APM is an established category, the broader category of intelligent software monitoring is much newer and addresses the complexities associated with cloud-based applications," he said in a recent report to clients. "The high cost of legacy solutions and their inability to address the complex cloud-stack environments has resulted in only about 5% of applications/environments being monitored today."
Dynatrace Stock: How Customers Are Warming Up
Chief Executive John Siclen offered an example of a converting customer during the company's quarterly earnings call in October. He said a Fortune 100 brick-and-mortar retailer and customer of the company's classic product set signed a mid-six-figure contract to convert to the Dynatrace software intelligence platform "with plenty of opportunity to grow in the multiple seven figures over time as they expand their cloud initiative."
Said Siclen: "Previously, the customer had a low urgency to change as our classic offering was serving their needs well for current enterprise applications. But when new management came on board and prioritized digital transformation, their needs and urgency quickly changed."
Dynatrace, which held its IPO Aug. 1, competes with AppDynamics, acquired by Cisco in 2017, as well as New Relic and Splunk. Other rivals include Datadog (DDOG), also a recent IPO stock to watch, as well as feisty startups such as SignalFX, recently acquired by Splunk. It also targets the customers of IBM (IBM), BMC Software, CA and others.
The market is getting crowded, analysts say, as Dynatrace and its rivals aim to take advantage of corporate America's shift to cloud computing. That includes moving business workloads and apps to internet data centers.
No Newcomer To APM
More than 14 years old, Dynatrace isn't a newcomer to the APM market. Compuware acquired Dynatrace in 2011 for around $250 million from a group of venture capital backers. Then private equity firm Thoma Bravo, a specialist in technology and software companies, bought Compuware for $2.4 billion in 2014.
In the September quarter, Dynatrace already was reporting a profit. Its year-over-year earnings grew 100% to 6 cents per share on a 27% increase in revenue to $129.4 million. Subscription revenue rose 41% to nearly $116 million.
The APM market will grow at a five-year annual compound rate of 12% to $5.6 billion in 2022. That's up from about $3.8 billion in 2018, says research firm Gartner.
Dynatrace has aimed to set itself apart with artificial intelligence tools that provide real-time analysis. Its software also automates cloud operations. One goal for clients is developing and releasing software faster.
Dynatrace says it has more than 2,300 customers in more than 70 countries. They're in diverse industries such as banking, insurance, retail, manufacturing, travel and software. Dynatrace's customers include Royal Caribbean, Kroger, Experian, Air Canada and Daimler.
Dynatrace IPO Raised $570 Million
The Dynatrace IPO raised $570 million. Dynatrace stock opened at 16 a share and closed its first day of trading at 23.85, up 49%. The stock hit an intraday high of 27.48 on Aug. 8.
But gains proved to be short-lived as Dynatrace stock hit a low of 17.25 on Oct. 16 before rebounding.
Having formed a bullish cup chart pattern in mostly low volume trading, Dynatrace stock ended trading Tuesday at 27.02, roughly 2% below an entry point of 27.58. It should be noted the cup formation had a depth of roughly 38%, putting it uncomfortably close to the 40% threshold, but Dynatrace came public during the summer market correction.
Holders of Dynatrace stock include a number of highly rated funds. Investors, though, should be aware that Thoma Bravo could reduce its stake or exit entirely in future secondary offerings.
In addition, investors should tread cautiously since IPOs can be volatile and have a shorter chart history to scrutinize.
JohnCM
4 years ago
Dynatrace Fiscal Q4 Earnings, Revenue Improve; Shares Gain Pre-Bell
BY MT Newswires
05/12/2020
Dynatrace, a US-based enterprise-software producer, reported premarket Tuesday fiscal Q4 non-GAAP EPS of $0.11, up from $0.03 a year ago.
Analysts polled by Capital IQ had projected earnings of $0.08 a share.
Revenue totaled $150.6 million for the three months ended March 31, up from $116.2 million a year earlier. Wall Street was looking for $146.3 million.
The company said it anticipates fiscal Q1 non-GAAP EPS to be in the range of $0.09 to $0.10, and revenue in the range of $148 million to $150 million. Analysts had projected EPS of $0.07 and revenue of $149.5 million.
Shares were up 1.5% in premarket trading
Price: 33.94, Change: +0.49, Percent Change: +1.46
JohnCM
4 years ago
Why Dynatrace (DT) Could Beat Earnings Estimates Again
Zacks Equity Research
May 7, 2020
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Dynatrace (DT). This company, which is in the Zacks Computers - IT Services industry, shows potential for another earnings beat.
When looking at the last two reports, this software intelligence company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 58.33%, on average, in the last two quarters.
For the most recent quarter, Dynatrace was expected to post earnings of $0.06 per share, but it reported $0.10 per share instead, representing a surprise of 66.67%. For the previous quarter, the consensus estimate was $0.04 per share, while it actually produced $0.06 per share, a surprise of 50%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Dynatrace. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Dynatrace currently has an Earnings ESP of +2.13%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on May 12, 2020.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
JohnCM
4 years ago
Dynatrace Earnings Surge 400%; Software IPO Stock Jumps
REINHARDT KRAUSE
01/29/2020
Dynatrace earnings jumped more than 400% during its fiscal third-quarter, the company said Wednesday, as the recent initial public offering topped Wall Street estimates. Dynatrace stock jumped on the news.
Earnings for Waltham-Mass.-based Dynatrace (DT) were an adjusted 10 cents a share vs. 2 cents for the year-ago quarter. The enterprise software maker's revenue climbed 25% to $143.3 million from $114.7 million a year ago.
Analysts expected Dynatrace earnings of 7 cents a share on revenue of $137.5 million for the period ended Dec. 31.
Analysts say one key financial metric for Dynatrace stock heading into earnings was annual recurring revenue. Dynatrace said ARR rose 44% to $534.5 million in the third quarter, topping estimates of $514.5 million.
The company added 380 customers to reach 2,208 total platform customers, up 92% year-over-year.
Dynatrace Stock: Annual Recurring Revenue Key Metric
"We think ARR is an important metric for investors and are encouraged by the 44% growth in total ARR this quarter," said BMO Capital Markets analyst Keith Bachman in a report. "We believe ARR growth will be driven primarily by high net retention rates, along with new customer adds."
He added: "We anticipate total ARR growth to be 40% in fiscal Q4, and gradually moderate to the mid-to-low-30% range in fiscal 2021."
Dynatrace also said subscription revenue rose 36% to $139.4 million.
For the current quarter ending March 31, its fiscal fourth, Dynatrace forecast profit of 8 cents and revenue of $147.5 million at its midpoint of guidance. Analysts had modeled for Dynatrace earnings of 7 cents a share and revenue of $144.8 million.
Dynatrace Stock: Rivals Include Cisco, New Relic
Dynatrace stock jumped 8.1% to close at 31 on the stock market today. Intraday, shares surged nearly 15% at one point to 32.95. On Tuesday, Dynatrace stock rose 2.6% to 28.68, edging out of a buy zone with an entry point of 27.29.
Short interest in Dynatrace stock had shot up ahead of its earnings report, brokerage Goldman Sachs said in a note to clients.
Dynatrace's software tools measure and analyze the performance of business-critical applications.
Dynatrace went public Aug. 1, backed by private equity firm Thoma Bravo. The Dynatrace IPO raised $570 million, with shares priced at 16.
Dynatrace competes versus the AppDynamics unit of Cisco Systems (CSCO), New Relic (NEWR) and others.
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