Dynatrace DT is benefiting from an expanding unified observability and security portfolio bolstered by a robust partner base. These factors drove clientele that resulted in a 20% year-over-year revenue growth in first-quarter fiscal 2025.

DT posted total annual recurring revenues (ARR) at the end of first-quarter fiscal 2025, which increased 20% year over year to $1.54 billion. Net new ARR rose 23% year over year. The upside reflects the increasing demand for digital transformation and AI initiatives across industries.

DT Enhances Deutsche Telekom IT’s Digital Services With AI

Dynatrace recently announced its partnership with Deutsche Telekom IT to enhance digital services through AI-driven insights and advanced analytics. 

The collaboration supports key applications like OneApp, for managing user data and OneShop, an e-commerce platform, and revolutionizes customer interactions. 

During the UEFA EURO 2024 Championship, Dynatrace helped Deutsche Telekom IT handle a surge of more than 600,000 new users for OneApp, ensuring seamless performance and extending its reach to more than 5 million mobile services. This showcases the strength of their partnership in optimizing user experience.

Dynatrace Prospects Ride on Expanding Clientele

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

Dynatrace’s collaboration with Alphabet’s cloud business, Google Cloud enhances customer access to AI-powered analytics and automation for cloud-native environments. This streamlines procurement and optimizes resources through joint sales and marketing initiatives.

In July, DT announced its observability platform’s native integration with Amazon’s cloud arm, AWS Application Migration Service (MGN), enabling organizations to efficiently and securely relocate applications to the AWS Cloud while maintaining optimal performance and compliance.

It 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.

Dynatrace 2025 Outlook Strong

Dynatrace’s strong portfolio and expanding partner base are expected to drive top-line growth.

For second-quarter fiscal 2025, revenues are projected to be between $404 million and $407 million. The metric suggests a 15-16% increase year over year (16-17% at cc). 

Non-GAAP earnings are anticipated to be between 30 and 33 cents per share. 

For fiscal 2025, revenues are projected to be between $1.72 billion and $1.73 billion, suggesting a 14-15% increase year over year (16-17% at cc). Non-GAAP earnings per share are anticipated to be between $1.26 and $1.29.

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