Dynatrace Reports Fourth Quarter and Full Year Fiscal 2025 Financial Results

Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced financial results for the fourth quarter and full year ended March 31, 2025. "Dynatrace delivered a strong finish ...

Exceeds high end of guidance across all FY25 metrics

Delivers FY25 Subscription Revenue growth of 20% year-over-year on a constant currency basis

Achieves FY25 GAAP Operating Margin of 11% and Non-GAAP Operating Margin of 29%

WALTHAM, Mass.: Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced financial results for the fourth quarter and full year ended March 31, 2025.

"Dynatrace delivered a strong finish to fiscal 2025. Our fourth quarter results exceeded guidance on all of our key operating metrics, fueled by broad consumption growth across the platform," said Rick McConnell, Chief Executive Officer of Dynatrace. "The world continues to shift to cloud and AI-native software deployments. Purpose-built for this environment, Dynatrace’s AI-powered observability platform provides customers not only with rich technical analytics but also valuable business insights. We remain focused on delivering extraordinary customer value, generating strong profitability and free cash flow, and investing thoughtfully in strategic priorities to capture the substantial opportunities we see ahead."

All growth rates are compared to the fourth quarter and full year fiscal 2024 ended March 31, 2024 unless otherwise noted.

Fourth Quarter Fiscal 2025 Financial Highlights:

Total ARR of $1,734 million, an increase of 15%, or 17% on a constant currency basis
Total Revenue of $445 million, an increase of 17%, or 19% on a constant currency basis
Subscription Revenue of $424 million, an increase of 18%, or 20% on a constant currency basis
GAAP Income from Operations of $43 million and Non-GAAP Income from Operations of $118 million
GAAP EPS of $0.13 and non-GAAP EPS of $0.33, on a dilutive basis

Full Year Fiscal 2025 Financial Highlights:

Total Revenue of $1,699 million, an increase of 19%, or 20% on a constant currency basis
Subscription Revenue of $1,622 million, an increase of 19%, or 20% on a constant currency basis
GAAP Income from Operations of $179 million and Non-GAAP Income from Operations of $494 million
GAAP EPS of $1.591 and non-GAAP EPS of $1.39, on a dilutive basis
GAAP Operating Cash Flow of $459 million and Free Cash Flow of $431 million

Business Highlights:

Go-to-market traction: Dynatrace closed 15 deals greater than $1 million in annual contract value (ACV) in the quarter, fourteen of which were in collaboration with partners. Dynatrace Platform Subscription (DPS) licensing models continue to gain traction with over 40% of our customer base and more than 60% of our ARR leveraging this flexible, scalable, and transparent subscription approach. Consumption growth rates across the Dynatrace platform continued to outpace revenue growth, with consumption growth rates for DPS customers growing twice the rate of SKU-based customers.

Partner evolution: Dynatrace signed a new strategic collaboration agreement with Amazon Web Services (AWS) to optimize the digital enterprise to provide joint customers with elevated business insights and accelerated time to outcomes. In addition, we announced early access for joint Google Cloud customers to our latest platform innovations, powered by Grail™ enabling customers to benefit from the combined power of the Dynatrace platform with Google Cloud's cutting-edge infrastructure and AI capabilities.

Industry and customer recognition: Dynatrace was named a Leader in The Forrester Wave™: AIOps Platforms, Q2 2025 report2 with the highest score in the Current Offering category. Dynatrace was also named a Leader and Outperformer in the 2025 GigaOm Radar Report for Cloud Observability, highlighting the company’s industry leadership and proven ability to help customers turn complex data into an asset by leveraging its AI-powered observability platform. In addition, Dynatrace has been named a Customers’ Choice in the 2024 Gartner Peer Insights Voice of the Customer for Observability Platforms report.3

Share Repurchase Program

During the fourth quarter, Dynatrace spent $43 million to repurchase 787,000 shares at an average price of $53.99 under its $500 million share repurchase program. From the inception of the program in May 2024 through March 31, 2025, Dynatrace has repurchased 3.4 million shares for $173 million at an average price of $50.06.

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1 During fiscal 2025, Dynatrace completed an intra-entity asset transfer of the global economic rights of intellectual property (IP) from a wholly-owned U.S. subsidiary to a wholly-owned Swiss subsidiary, more closely aligning IP rights with business operations. The transfer generated an income tax benefit of $320.9 million, or $1.06 per share on a dilutive basis.

2 Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity here.

3 Gartner, Peer Insights Voice of the Customer for Observability Platforms, By Peer Contributors, 24 December 2024.

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Fourth Quarter 2025 Financial Highlights (Unaudited – In thousands, except per share data)

	Three Months Ended March 31,
		2025			2024
Annual recurring revenue (ARR):
Total ARR	$	1,734,164		$	1,503,819
Year-over-Year Increase		15	%
Year-over-Year Increase - constant currency (*)		17	%

Revenue:
Total revenue	$	445,165		$	380,848
Year-over-Year Increase		17	%
Year-over-Year Increase - constant currency (*)		19	%

Subscription revenue	$	423,570		$	360,109
Year-over-Year Increase		18	%
Year-over-Year Increase - constant currency (*)		20	%

GAAP Financial Measures:
GAAP income from operations	$	42,914		$	23,123
GAAP operating margin		10	%		6	%

GAAP net income	$	39,304		$	37,944

GAAP net income per share - diluted	$	0.13		$	0.13

GAAP shares outstanding - diluted		304,354			300,867

Net cash provided by operating activities	$	162,790		$	131,672
Net cash provided by operating activities as a percent of revenue		37	%		35	%

Non-GAAP Financial Measures (*):
Non-GAAP income from operations	$	117,887		$	95,093
Non-GAAP operating margin		26	%		25	%

Non-GAAP net income	$	99,047		$	89,401

Non-GAAP net income per share - diluted	$	0.33		$	0.30

Non-GAAP shares outstanding - diluted		304,354			300,867

Free Cash Flow	$	145,528		$	121,262
Free Cash Flow margin		33	%		32	%

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Full Year 2025 Financial Highlights (Unaudited – In thousands, except per share data)

	Year Ended March 31,
		2025			2024
Revenue:
Total revenue	$	1,698,683		$	1,430,530
Year-over-Year Increase		19	%
Year-over-Year Increase - constant currency (*)		20	%

Subscription revenue	$	1,622,163		$	1,359,354
Year-over-Year Increase		19	%
Year-over-Year Increase - constant currency (*)		20	%

GAAP Financial Measures:
GAAP income from operations	$	179,433		$	128,400
GAAP operating margin		11	%		9	%

GAAP net income (**)	$	483,684		$	154,632

GAAP net income per share - diluted (**)	$	1.59		$	0.52

GAAP shares outstanding - diluted		303,602			299,280

Net cash provided by operating activities	$	459,419		$	378,109
Net cash provided by operating activities as a percent of revenue		27	%		26	%

Non-GAAP Financial Measures (*):
Non-GAAP income from operations	$	493,540		$	398,239
Non-GAAP operating margin		29	%		28	%

Non-GAAP net income	$	422,313		$	358,117

Non-GAAP net income per share - diluted	$	1.39		$