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Dynatrace (DT) Aids Security Solutions With Growing Clientele

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Dynatrace (DT - Free Report) continues to strengthen its position with an expanding unified observability and security portfolio bolstered by a robust partner base. These factors drove clientele that resulted in a 21% year-over-year revenue growth in fourth quarter of fiscal 2024.

Total annual recurring revenues (ARR) at the end of fourth-quarter fiscal 2024 increased 21% year over year to $1.5 billion.

Building on this momentum, DT extended its presence in the hybrid cloud security and observability landscape through its recent collaboration with Gigamon and Trace3 to launch the Power of 3 Cloud Integration Initiative.

The initiative aims to enhance customer’s ability to secure and manage their hybrid cloud infrastructures effectively.

Dynatrace, Inc. Price and Consensus

 

Dynatrace, Inc. Price and Consensus

Dynatrace, Inc. price-consensus-chart | Dynatrace, Inc. Quote

 

By integrating Dynatrace’s advanced observability and security capabilities with Gigamon’s Deep Observability Pipeline facilitated by Trace3’s expertise, organizations can now detect vulnerabilities, monitor for potential threats and optimize performance seamlessly.

Dynatrace Prospects Rides on Expanding Clientele

The latest move bodes well with Dynatrace’s focus on improving hybrid cloud visibility and security through partnerships, ensuring enhanced threat detection and operational efficiency for customers.

Dynatrace’s robust network of partners, which includes the likes of Alphabet’s (GOOGL - Free Report) cloud business Google Cloud, Amazon’s (AMZN - Free Report) cloud arm, Amazon Web Services (AWS) and Llyods Banking Group (LYG - Free Report) , has been a major growth driver.

In April, Dynatrace expanded its go-to-market partnership with Alphabet’s cloud business, Google Cloud, enhancing AI-powered analytics and automation for cloud-native environments. The move was aimed at accelerating digital transformation globally.

Dynatrace’s recognition as Amazon’s cloud arm, AWS Security Competency partner remains noteworthy. It showcases its advanced capabilities in proactively addressing vulnerabilities, defending threats and real-time incident response across AWS environments through its advanced application security capabilities and AI-driven automation.

Dynatrace also collaborated with Lloyds Banking Group to develop Dynatrace Carbon Impact, aiding in measuring and reducing the environmental carbon impact of LYG’s IT ecosystem and aligning with sustainability goals.

An expanding portfolio also drives DT’s prospects. In May, the company announced the integration of Kubernetes Security Posture Management (KSPM) capabilities into its platform, enhancing observability-driven security and compliance monitoring for cloud-native applications.

Conclusion

The stock has declined 16.1% year to date compared with the Zacks Computer & Technology sector’s 9.8% growth. The underperformance can be attributed to the challenging macroeconomic environment.

Nevertheless, this Zacks Rank #3 (Hold) company’s strong portfolio and expanding partner base are expected to drive top-line growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

For first-quarter fiscal 2025, revenues are projected between $391 million and $393 million, suggesting a 17-18% increase year over year (18-19% at cc). The Zacks Consensus Estimate is pegged at $392.12 million, indicating 17.79% growth from year-earlier actuals.

Non-GAAP earnings are anticipated to be between 29 and 30 cents per share. The Zacks Consensus Estimate is pegged at 29 cents, remaining unchanged in the past 30 days.


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