Dynatrace (NYSE:DT) reported fiscal Q3 earnings and revenue that surpassed analysts’ estimates, but the stock fell 14% in premarket trading Thursday.
The company’s earnings per share (EPS) for the quarter came in at $0.32, higher than the expected $0.28. Its revenue stood at $365 million, also exceeding the consensus estimate of $357.77 million.
The software maker has experienced a 21% year-over-year growth in Annual Recurring Revenue (ARR), adjusted for constant currency, while its non-GAAP operating margin reached 29%.
Looking ahead to the fourth quarter, Dynatrace expects its adjusted EPS to be between 26 cents and 28 cents, slightly above the estimate of 25 cents. It forecasts its revenue to be in the range of $372 million to $377 million, compared to the $373.4 million projected by analysts.
For the full fiscal year 2024, DT anticipates an EPS range of $1.16 to $1.18, up from the previous forecast range of $1.09 to $1.12, and outpacing the consensus estimate of $1.11.
Revenue is guided to be between $1.42 billion and $1.43 billion, up from the prior $1.41 billion to $1.42 billion outlook, while analysts estimated $1.42 billion.
"We now expect foreign exchange to be a tailwind of approximately $10 million on ARR and approximately $13 million on revenue for fiscal 2024,” the company said in a statement.