Dynatrace reported second-quarter revenue of $554.5 million, beating analyst estimates of $549.7 million and growing 16.2% year over year, while adjusted EPS of $0.48 also topped expectations. The company lowered its full-year revenue guidance to $2.31 billion at the midpoint from $2.33 billion, a 0.6% decrease, but raised its full-year adjusted EPS guidance to $1.98 at the midpoint, a 2.1% increase. Annual recurring revenue reached $2.14 billion, in line with estimates and up 17.2% year over year, and billings rose 7.8% to $418.3 million. During the earnings call, CFO James Benson said no pricing changes are planned this year and that renewals are heavily weighted to the back half of the year, while CEO Rick McConnell highlighted AI-driven growth in platform consumption, AI observability demand, and direct monetization of agent usage.
Dynatrace Holdings LLCQ2 beat but full-year revenue guidance trimmed, EPS guidance raised
