Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Dynatrace(DT): Healthy Mix of New Business and upselling Momentum catalysing revenue expansion- whats the growth impact as we approach 2H , outlook & its 4 biggest catalysts ?
Dynatrace’s Q3 FY24 results demonstrate strong execution, with revenue of $418.13 million exceeding estimates by $11.69 million. ARR grew 19% YoY to $1.62 billion, driven by strong European expansion and the shift to its subscription-based platform (DPS), which now accounts for 50% of ARR. DPS is accelerating growth, as customers adopt more platform capabilities, and emerging adjacencies like logs and app security show strong growth potential. The company’s strong gross margin of 85%, operating margin of 31%, and free cash flow margin of 28% reflect a solid, profitable growth model. Dynatrace’s strategic partnerships, especially with Microsoft Sentinel, bolster its position in cybersecurity, enhancing its value proposition. The company maintained ARR guidance of $1.72–$1.735 billion (+15%-16% YoY), with expectations for a stronger Q4. With 50% of ARR now tied to DPS, the momentum from flexible consumption is expected to drive faster ARR growth. Additionally, investments in R&D, particularly in its Grail data lakehouse and new product adjacencies, are poised to expand its market share. As we approach the second half of the year, what will be the growth impact of these catalysts, and how will Dynatrace continue to leverage its product innovations to sustain long-term growth?
