Dynatrace Shares Drop Despite Q3 Beat; Margin Contracts

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Dynatrace Inc. reported third-quarter FY22 revenue growth of 32 percent year-on-year to $240.8 million, beating the consensus of $234.4 million.

Total ARR increased 29 percent Y/Y to $930 million. Revenues from Subscription rose 33 percent Y/Y to $226 million.

Margins

The non-GAAP operating margin contracted 400 basis points to 25 percent.