Dynatrace, Inc.·Technology

Investors interested in stocks from the Computers - IT Services sector have probably already heard of TD SYNNEX (SNX) and Dynatrace (DT). But which of these two stocks offers value investors a better bang for their buck right now?

Dynatrace (DT) possesses solid growth attributes, which could help it handily outperform the market.

Dynatrace, Inc. (DT) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

Dynatrace delivered Q4 revenue of $531.7M (+19.4% y/y), beating estimates, with 95% recurring subscription revenue and robust free cash flow generation. Despite strong financial health, including $1.1B in cash and no debt, DT faces market concerns over ARR growth deceleration to 16%-17% and cautious FY guidance. DT's AI observability products and integration with major hyperscalers position it well to adapt, countering fears of obsolescence from AI disruption.

Dynatrace is a high-margin, AI-powered observability platform with $2.054 billion in ARR, strong FCF, and a valuation still below peer software names. DT's ~96% subscription revenue, 111% net retention, and $3.2 billion RPO support durability, visibility, and a real recurring-revenue base. Starboard Value, the activist investor that acquired a stake in DT recently, is seeing margin expansion, S&M efficiency, and capital return, but buybacks should be treated as an upside lever, not guaranteed.

Dynatrace, Inc (NYSE:DT) on Wednesday reported upbeat fourth-quarter financial results and issued first-quarter sales guidance below estimates.
Dynatrace, Inc. provides a software intelligence platform for dynamic multi-cloud environments. It operates Dynatrace, a software intelligence platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, digital experience monitoring, business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, develop and release software, and enhance user experiences. The company also offers implementation, consulting, and training services. Dynatrace, Inc. markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, insurance, retail, manufacturing, travel, and software. The company operates in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.
Technology
Software - Application
4,700
2019-08-01
0.70