Latest news with #JamesBenson
Yahoo
6 days ago
- Business
- Yahoo
DT Q1 Earnings Call: Dynatrace Misses Revenue Expectations but Raises Guidance on AI and Log Management Momentum
Application performance monitoring software provider Dynatrace (NYSE:DT) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 16.9% year on year to $445.2 million. Its non-GAAP EPS of $0.33 per share was 9.1% above analysts' consensus estimates. Is now the time to buy DT? Find out in our full research report (it's free). Revenue: $445.2 million (16.9% year-on-year growth) Adjusted EPS: $0.33 vs analyst estimates of $0.30 (9.1% beat) Revenue Guidance for Q2 CY2025 is $467.5 million at the midpoint, above analyst estimates of $453.7 million Adjusted EPS guidance for the upcoming financial year 2026 is $1.58 at the midpoint, beating analyst estimates by 2.7% Operating Margin: 9.6%, up from 6.1% in the same quarter last year Annual Recurring Revenue: $1.73 billion at quarter end, up 15.3% year on year Billings: $715.8 million at quarter end, up 12.6% year on year Market Capitalization: $16.25 billion Dynatrace's first quarter results reflected growing customer adoption of its AI-powered observability platform and continued expansion into enterprise accounts. CEO Rick McConnell highlighted the increasing role of large deal closures and noted that over 80% of annual contract value closed in the quarter was partner-influenced, particularly through global system integrators and hyperscalers. Management attributed incremental growth to the broader adoption of the Dynatrace Platform Subscription (DPS) licensing model, which allows customers to utilize a wider array of platform features. CFO James Benson emphasized the rising average annual recurring revenue per customer, now well over $400,000, as evidence of the platform's expanding footprint within client environments. New product traction in log management and ongoing investments in sales productivity and partner enablement were also cited as key contributors to the quarter's performance. Looking ahead, Dynatrace's guidance for the next quarter and the upcoming year is grounded in expectations of continued growth in AI-driven observability and broader platform adoption. Management sees the market's shift toward cloud-native and AI-native workloads as central to future expansion, with McConnell stating, "As organizations accelerate cloud and AI native initiatives, the need for AI-powered observability at scale has never been greater." CFO James Benson pointed to the company's evolving focus on consumption-based growth, driven by dedicated teams aimed at increasing product adoption. While management remains optimistic about the secular trends supporting demand, they are also cautious, acknowledging the potential for extended sales cycles and heightened budget scrutiny among enterprise customers. Investments in R&D, sales capacity, and partnership programs are expected to support long-term profitability and top-line growth. Management attributed the quarter's revenue shortfall to a mix of uncommitted on-demand consumption patterns and longer enterprise sales cycles, but emphasized notable progress in platform adoption and AI product expansion. DPS Licensing Adoption: The Dynatrace Platform Subscription (DPS) model continued to gain traction, now accounting for over 40% of the customer base and more than 60% of annual recurring revenue. Management reported that DPS customers adopt significantly more features and exhibit higher consumption rates, which they believe will drive future expansion revenue. Log Management Acceleration: Dynatrace's log management solution saw rapid uptake, with over one-third of customers now using the product—an 18% increase over the prior quarter. Nearly half of new customers implemented log management at the outset, and management expects this business to grow by over 100% in the coming year, underpinned by the Grail data lakehouse technology. Partner-Driven Sales Expansion: Over 80% of closed contract value was influenced by partners, notably global system integrators and hyperscalers. Management highlighted that these relationships provide greater reach and are crucial as workloads shift to cloud environments, with strategic accounts showing a 45% pipeline increase year over year. AI and Agentic Observability: The company outlined its continued investment in agentic AI, aiming to enable autonomous system remediation and optimization without human intervention. CEO Rick McConnell described advances in AI-native platform capabilities as a key differentiator, especially as enterprise customers seek to automate more operational workflows. Go-to-Market Enhancements: Dynatrace introduced 'strike teams' focused on driving adoption in key areas such as logs, application security, and digital experience monitoring. These dedicated teams are measured on consumption and are intended to support the company's transition toward a more usage-based revenue model. Dynatrace's outlook is shaped by the anticipated expansion of cloud and AI-native workloads, increased product consumption, and ongoing investment in platform innovation. AI-Powered Product Expansion: Management plans to accelerate investment in AI observability and preventive operations, anticipating that these enhancements will drive broader adoption among development teams and differentiate Dynatrace in a rapidly evolving market. Consumption-Focused Growth Model: The company is increasing its emphasis on consumption-based revenue streams, supported by dedicated adoption and customer success teams. Management expects this approach to result in higher usage volumes, though it may introduce variability in short-term revenue recognition as customers shift to on-demand consumption patterns. Enterprise Sales Cycle and Budget Scrutiny: While secular trends remain favorable, management flagged a cautious outlook due to extended sales cycles and increasing budget scrutiny among large enterprise clients. This dynamic may affect the timing of new bookings but is expected to be offset by growing partner influence and expansion within existing accounts. In the coming quarters, the StockStory team will focus on (1) the pace of DPS adoption and its impact on customer expansion rates, (2) the growth trajectory of log management and AI-driven observability solutions, and (3) the effectiveness of partner-led sales motions, particularly with hyperscalers and global system integrators. Progress in application security adoption and continued innovation in AI automation will also be important indicators of Dynatrace's ability to maintain momentum. Dynatrace currently trades at a forward price-to-sales ratio of 8.4×. Should you double down or take your chips? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
The Sun
02-06-2025
- Business
- The Sun
The 10 interior design blunders that make your house unsellable – from fake plants to ‘sloppy' curtains
WITH summer fast approaching, brighter days and warmer nights are on the horizon - which means the housing market is starting to come alive. And experts have said that now is the perfect time for homeowners to put their properties up for sale as the longer days make the whole process more enjoyable. 10 10 But did you know that there are several interior design blunders that could be making your house unsellable? A well-styled home can make a huge difference when it comes to attracting potential buyers, but there are a few design errors that could have the opposite effect. So, if you're thinking of putting your home on the market, then you might want to take note. Estate agents have shared their top ten common interior design mistakes that can make your home less appealing. Property pro James Benson, of Five Star Cash Offer, revealed that even the smallest design missteps can be enough to turn someone off your home While some of these mistakes may seem minor, they can add up, ultimately lowering the attractiveness of your home and potentially impacting its resale value. Ignoring foul odours One of the first things that people notice when they walk into a home is the smell - and a bad odour can be a dealbreaker for a potential buyer. James explains that smells from pets, cooking, and dampness can linger and make people uncomfortable. He said: "If your home smells bad, no amount of fresh paint or beautiful decor will save it. "Before showing your home, make sure it's aired out, and consider using neutralising scents like fresh linen or citrus. A clean, fresh-smelling home is always more inviting." I'm a DIY fan and swear by a seven colour room that makes any home feel like it's been designed by a pro Overloading your walls with photos We all love having personal touches and photos around our house - they make our spaces feel meaningful, and they can bring back happy memories. But having too many family photos and personal mementos can make a room feel cluttered and overly intimate. The experts say: "Personal photos are best kept in albums, not displayed throughout your home. "Too many pictures can make a space feel crowded and cluttered, which could deter potential buyers who want to imagine their own lives in the space". Skipping privacy in your bathroom You might not realise it, but separating the toilet from the rest of the bathroom area can make a significant difference when it comes to selling your home. James advises: "Privacy is key. If possible, create separate areas for the toilet, shower, and sink. "This ensures a more functional and private space, which is something that buyers will appreciate. 'While this may not always be feasible in every home, considering this separation when designing or renovating can pay off.' 10 Letting your curtains drag on the floor This might seem like a really minor issue, but curtains that hang too low or drag across the floor make a room feel smaller and less polished. James suggests: "Curtains should hang just above the floor, ideally an inch or two. "This allows them to flow freely and adds a touch of elegance to the room. "When they drag along the ground, they look sloppy, which is definitely not the impression you want to give when showing your home." Ignoring proper lighting in your rooms Any interior designer will tell you that lighting can be a game-changer for any room in the house. Spaces that aren't properly lit can make the home feel gloomy, whilst hiding the beauty of its natural design. James explains: "Good lighting is essential for creating a welcoming atmosphere. "Using white walls, clear furniture, and glass doors helps reflect natural light, making the space feel airy and open. "Without proper lighting, even the most stylish room can feel dreary". Using artificial plants Fake plants may be considered a super-easy way to add some greenery to the home while being low-maintenance. But James warns that it could actually be doing more harm than good. The property pro says: "Fake plants can look cheap and are often magnets for dust. "They can make your home feel less authentic, and when it comes to selling, buyers will notice. "If you're looking to add a bit of nature to your space, opt for real plants instead." Overdoing it with colours and patterns Most of us like adding a pop of colour to our home to brighten up the place, but having too many clashing colours and patterns can be off-putting for buyers. James explains: "You want to create a cohesive look that appeals to a wide range of buyers. "Stick to a simple colour palette with subtle contrasts. Try mixing light colours with one bold accent for a modern yet inviting space. "Too many contrasting colours and patterns can overwhelm a room, making it hard for potential buyers to imagine themselves living there." 6 ways to make a tiny bathroom look larger & feel cosier Olivia Crosher an expert interior designer at Naturewall, shared six ingenious tips to make your bathroom feel bigger. 1. Unified Colour Scheme - 'Choosing a light, soft hue and pale colours can further enhance this effect, making the bathroom feel airy and open." 2. Embrace Texture with Tiles or waterproof wall panels - "Opt for panelling or tiles with subtle, natural textures or patterns to add interest without overwhelming the space, it can add layers to the room, making it feel cosy.' 3. Strategic Mirror Placement - "Consider positioning it opposite a window or in a spot where it can catch and bounce light around the room. This not only makes the space appear larger but also brighter.' 4. Minimalist Fixtures - "Wall-mounted taps and sinks can save space while adding a modern touch that's both functional and stylish." 5. Smart Storage Solutions - "This helps maintain a serene and spacious atmosphere without sacrificing functionality.' 6. Soft Lighting for Warmth - "This approach allows you to adjust the lighting as needed and adds a cosy ambience that's perfect for relaxing baths. Overloading your sofa with cushions Cushions can make your sofa super comfy and cosy, but having too many can actually be overwhelming, experts warn. James suggests: "Interior designers follow the rule of three: one large cushion, one medium, and one small. "This balance gives your sofa a neat, sophisticated look without overwhelming the space. "Excess cushions create clutter and make the seating area uncomfortable." Hanging artwork in the wrong spot Hanging artwork is a great way to add character to any room, but experts say making sure it's put up in the right place is very important. James recommends: "When displaying artwork, ensure it's at eye level, or centred with the furniture. 'Hanging pieces too high or low can make the room feel out of balance. "For the best look, artwork should be easy to view without straining your neck or eyes, and it should enhance, not overpower, the room's decor.' Skipping small repairs When you've been in your home long enough, small things like cracked tiles, leaky faucets, or chipped paint are easily forgotten about. However, these imperfections will quickly be noted by a potential buyer, and it can create a sense that the house has been neglected. It also might lead them to think there could be bigger issues behind the surface, which could put them off buying your home. James advises: "Even if these repairs seem minor, they can add up to make a significant difference in how buyers perceive the property. "Fixing them before listing your home can help you achieve a smoother sale and even increase your asking price".
Yahoo
15-05-2025
- Business
- Yahoo
Dynatrace Inc (DT) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Subscription Revenue Growth: 20% increase. Annual Recurring Revenue (ARR): $1.73 billion, representing 17% growth. Non-GAAP Operating Margin: Expanded by more than 100 basis points. Pretax Free Cash Flow Margin: Improved by roughly 250 basis points. Customer Base: Surpassed 4,000 customers. Employee Count: Surpassed 5,000 employees. New Logos Added in Q4: 171 new logos. Average New Logo Land Size: $130,000 on a trailing 12-month basis. Gross Retention Rate: Mid-90s percentage. Net Retention Rate (NRR): 110% in the fourth quarter. DPS Licensing Model: Over 40% of customer base and more than 60% of ARR. On-Demand Consumption Revenue (ODC): $9 million in Q4, $21 million trailing 12 months. Total Revenue for Q4: $445 million, growing 19%. Non-GAAP Net Income for Q4: $99 million or $0.33 per diluted share. Full Year Total Revenue: $1.7 billion, growing 20%. Full Year Non-GAAP Operating Margin: 29%. Full Year Free Cash Flow: $431 million or 25% of revenue. Cash and Investments: Nearly $1.2 billion as of March 31. Share Repurchase Program: 787,000 shares repurchased for $43 million in Q4. Fiscal '26 ARR Guidance: $1.975 billion to $1.99 billion, 13% to 14% growth. Fiscal '26 Total Revenue Guidance: $1.95 billion to $1.965 billion, 14% to 15% growth. Fiscal '26 Non-GAAP Operating Income Guidance: $560 million to $570 million. Fiscal '26 Free Cash Flow Guidance: $505 million to $515 million, 26% of revenue. Warning! GuruFocus has detected 8 Warning Signs with GAIN. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dynatrace Inc (NYSE:DT) achieved a 20% growth in subscription revenue and surpassed $1.7 billion in ARR. The company expanded its non-GAAP operating margin by over 100 basis points and pretax free cash flow margin by roughly 250 basis points. Dynatrace Inc (NYSE:DT) surpassed 4,000 customers and 5,000 employees, indicating strong market presence and growth. The company announced major platform innovations, including AI-powered log management and analytics, enhancing its competitive edge. Dynatrace Inc (NYSE:DT) was consistently named a leader in major analyst reports for observability and AI Ops, reinforcing its industry leadership. The economic environment remains uncertain, which could impact future growth and customer spending. On-demand consumption revenue (ODC) is not captured in ARR or NRR metrics, potentially distorting growth visibility. The transition to a consumption-oriented model may lead to variability in revenue recognition and forecasting challenges. Despite strong pipeline growth, there is a concern about longer sales cycles, especially for large strategic accounts. The company faces competition from peers with broader portfolios, such as Datadog, which may impact market share. Q: Can you provide an update on the logs target for $100 million of ARR and expectations for fiscal '26? A: James Benson, CFO, stated that logs are the fastest-growing product category, with over 1/3 of customers leveraging the solution. The $100 million target is a consumption-oriented goal, not an ARR goal, due to the DPS contracts. They have high confidence in exceeding this target in fiscal '26, with the business expected to grow well over 100%. Q: How did the go-to-market changes, including new quotas and territory realignment, fare versus expectations? Are there any significant changes planned for this year? A: Rick McConnell, CEO, highlighted the importance of GSIs and hyperscalers in their strategy, noting substantial growth in partner-influenced business. James Benson added that the go-to-market changes have been positive, with a focus on higher propensity accounts and channel leverage. They are introducing "strike teams" focused on logs, application security, and digital experience monitoring to drive adoption and consumption. Q: What needs to happen to unlock the security opportunity more broadly? Is it a function of product depth or go-to-market strategy? A: Rick McConnell explained that it's a combination of both. They see good traction with their RVA solution for vulnerability analytics and are expanding offerings towards CADR and cloud SIM opportunities. They also have a strike team focused on the go-to-market aspect of application security. Q: How are you thinking about on-demand consumption revenue (ODC) for next year, given limited historical data? A: James Benson stated that they are applying analytics to cohort behavior and attach rates, with a level of conservatism due to the uncommitted nature of ODC. They are focused on driving more consumption and adoption, which will show up in ODC or ARR. Q: How do you trade off the upside of on-demand revenue versus predictability in customer contracts? A: James Benson explained that customer success and strike teams are now measured on consumption and adoption. This focus is expected to lead to high growth in consumption, with customers either going to on-demand consumption or renewing early. The company is transitioning to a more consumption-oriented model. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
