BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Dynatrace Exceeds Fiscal 2024 Guidance and Announces $500 Million Share Repurchase Program
WALTHAM, Mass. – Dynatrace (NYSE: DT), a leader in unified observability and security, has announced robust financial results for the fourth quarter and full year ending March 31, 2024. The company surpassed its guidance across all key fiscal 2024 metrics, driven by significant annual recurring revenue (ARR) growth and strategic expansions.
Key Financial Highlights:
- Total ARR: Reached $1,504 million, up 21% year-over-year (20% on a constant currency basis).
- Total Revenue: Increased by 21% year-over-year to $381 million (constant currency basis).
- Subscription Revenue: Rose by 23% to $360 million (22% on a constant currency basis).
- GAAP Income from Operations: $23 million for Q4 and $128 million for the full year.
- Non-GAAP Income from Operations: $95 million for Q4 and $398 million for the full year.
- GAAP EPS: $0.13 for Q4 and $0.52 for the full year.
- Non-GAAP EPS: $0.30 for Q4 and $1.20 for the full year.
- GAAP Operating Margin: 9% for FY24.
- Non-GAAP Operating Margin: 28% for FY24.
- Operating Cash Flow: $378 million.
- Free Cash Flow: $346 million for FY24.
Rick McConnell, Chief Executive Officer of Dynatrace, commented, “Our fourth quarter results exceeded guidance across all key operating metrics, fueled in part by a record number of 7-figure deals closed in the quarter.”
Strategic Initiatives and Business Growth
Dynatrace's strategic focus on unified observability and security has been validated by significant market traction and industry recognition. The company closed a record 18 deals greater than $1 million in annual contract value (ACV) during Q4, including its first-ever 9-figure total contract value (TCV) deal in collaboration with Accenture.
Industry and Customer Recognition:
- 2024 GigaOm Radar Report: Named a Leader for Cloud Observability Solutions.
- Gartner® Peer Insights™: Recognized as a Customers' Choice in Digital Experience Monitoring.
Acquisitions and Technology Integration:
- Runecast Acquisition: Dynatrace successfully acquired Runecast, an AI-powered security and compliance solution provider. This integration enhances the Dynatrace platform with automated, AI-driven, real-time vulnerability assessments.
Share Repurchase Program
In a demonstration of confidence in its future growth, Dynatrace's Board of Directors has authorized a $500 million share repurchase program. This initiative will leverage the company’s strong balance sheet and cash flow, providing flexibility for strategic acquisitions and driving shareholder returns.
Jim Benson, Chief Financial Officer, stated, “The share repurchase program demonstrates our confidence in the business and conviction in our future growth prospects.”
Financial Outlook for Fiscal 2025
Based on information available as of May 15, 2024, Dynatrace has issued guidance for the first quarter and full fiscal year 2025:
First Quarter Fiscal 2025:
- Total Revenue: $391 - $393 million, up 17% - 18% (constant currency 18% - 19%).
- Subscription Revenue: $374 - $376 million, up 18% - 19% (constant currency 19%).
- Non-GAAP Income from Operations: $105 - $108 million.
- Non-GAAP Operating Margin: 27% - 27.5%.
- Non-GAAP Net Income per Diluted Share: $0.29 - $0.30.
Full Year Fiscal 2025:
- ARR: $1,720 - $1,735 million, up 14% - 15% (constant currency 15% - 16%).
- Total Revenue: $1,644 - $1,658 million, up 15% - 16% (constant currency 16% - 17%).
- Subscription Revenue: $1,571 - $1,585 million, up 16% - 17% (constant currency 16% - 17%).
- Non-GAAP Income from Operations: $459 - $467 million.
- Non-GAAP Operating Margin: 28%.
- Non-GAAP Net Income per Diluted Share: $1.26 - $1.29.
- Free Cash Flow: $386 - $398 million, with a margin of 23.5% - 24%.
Stock Market Reaction
In response to these strong financial results, Dynatrace's stock has seen a positive reaction, rising by 3% in pre-market trading. This increase reflects investor confidence in the company's performance and strategic initiatives.
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