DT Stock Tumbles On Earnings Report, Guidance Under New CEO

Dynatrace stock plunged after its fiscal third-quarter earnings and sales topped estimates while its revenue outlook fell slightly short of expectations. DT stock reported earnings for the first time under new Chief Executive Rick McConnell.

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Waltham-Mass.-based Dynatrace (DT) reported earnings before the market open on Wednesday.

In the December quarter, Dynatrace earnings were adjusted 18 cents a share, up a penny from a year earlier. Revenue climbed 32% to $241 million, the company said.

Analysts had estimated profit of 16 cents on revenue of $234.5 million. Annual recurring revenue, or ARR, rose 29% to $930 million.

For the current quarter ending in March, Dynatrace predicted revenue of $246 million vs. estimates of $246.6 million. For full-year, fiscal 2022, Dynatrace said it expects ARR in a range of $990 million to $996 million, up $2 million at the midpoint of guidance.

DT Stock: New Chief Executive

DT stock plunged 12% to near 49.50 before the market open on the stock market today.

The software maker’s computer network monitoring tools measure and analyze the performance of business-critical applications.

Dynatrace’s long-time chief executive, John Van Siclen, left in mid-December. McConnell, former president and general manager of security at Akamai Technologies (AKAM) took over.

“Looking ahead, we plan to further increase investments to capture the tremendous market opportunity ahead of us with the objective of accelerating growth as we scale to build a multibillion-dollar business,” McConnell said in a press release.

Heading into the Dynatrace earnings report, the stock owned a Relative Strength Rating of 43 out of a best-possible 99, according to IBD Stock Check-up.

Dynatrace competes in the application performance monitoring market vs. Cisco Systems (CSCO), Datadog (DDOG), New Relic (NEWR) and others.

Dynatrace went public Aug. 1, 2019, backed by private equity firm Thoma Bravo. Further, the Dynatrace IPO raised $570 million.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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