Dynatrace: High Margins And Outstanding Execution

Jul. 22, 2022 12:53 PM ETDynatrace, Inc. (DT) StockDT2 Comments
Deep Tech Insights
6.32K Followers

Summary

  • Dynatrace is a Gartner Magic Quadrant leader in IT observability.
  • As businesses "digitally transform" to the cloud, the need to oversee operations in a unified manner becomes essential.
  • The company has a $50 billion TAM and serves thousands of customers including Kroger, SAP, Dell, Experian and many more.
  • Dynatrace has an extremely high gross margin of 81.4%, which is higher than industry peers. In addition, the company is actually profitable which is a rarity in the industry.
  • The stock is now fairly valued intrinsically and management's conservative growth estimates offer less downside risk relative to industry peers.

cloud computing. The data transfer and storage concept consists of a white polygonal interconnected structure within it. Dark blue background with small padlocks scattered on the background.

TU IS/iStock via Getty Images

How much technology do you use in a day? From your cell phone, to web applications, video conferencing to IoT (Internet of Things) devices such as Alexa. Now imagine a modern organization with thousands of employees remotely working across 25 countries, using

This article was written by

6.32K Followers
Senior Investment Analyst for Hedge Funds. Interviewed Hedge Fund Managers and CEO's. Investment Strategy: Focus on Deep Dive Valuation, G.A.R.P (Growth at a Reasonable Price). Masters in Equity Valuation, 755+ Companies Analysed.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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