Dynatrace announced financial results for its third quarter of fiscal 2025, ended December 31, 2024, exceeding guidance across all key operating metrics. Annual Recurring Revenue (ARR) reached $1,647 million, an 18% increase year-over-year on a constant currency basis.
Total revenue for the quarter was $436 million, up 20% year-over-year on a constant currency basis, with subscription revenue growing 21% to $417 million. The company reported a GAAP net income of $361.8 million, or $1.19 per diluted share, which included a significant $320.9 million deferred tax benefit from an intra-entity intellectual property transfer.
For the full fiscal year 2025, Dynatrace increased its guidance for total revenue to a range of $1,686 million to $1,691 million, and subscription revenue to $1,609 million to $1,614 million. Non-GAAP operating margin guidance was raised to 28.5% to 28.75%, and non-GAAP EPS guidance was lifted to $1.36 to $1.37 per diluted share, reflecting strong operational performance despite an anticipated $38 million foreign exchange headwind on ARR.
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