WALTHAM, Mass: Dynatrace, 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 t customers with elevated business insights and accelerated time to outcomes. In addition, we announced early access for t 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.