Shares of Dynatrace (DT) surged 9% in pre-market trading Wednesday after the company reported better-than-expected results for its fourth quarter. The company reported adjusted EPS of $0.31 on revenue of $314 million, topping the consensus for earnings of $0.22 per share on sales of $304.9M.
For the current quarter, the company sees adjusted EPS at $0.22 on revenue of $326.5M, ahead of the consensus at $321.6M. For FY24, revenue is seen at $1.40 billion, again ahead of the Street at $1.37B. Full-year profit is expected at $1.00 while analysts were expecting $0.98.
CEO Rick McConnell commented on the results, saying “Dynatrace delivered a great finish to the year with strong fourth quarter results that exceeded expectations across the board, demonstrating the durability of our business model.” He added that “Observability is quickly moving from optional to mandatory as customers look to tame the explosion of data and increased complexity that’s driven by their cloud migration and digital transformation initiatives.”
The strong results and guidance have investors feeling bullish on the stock, sending it up 9% in pre-market trading.