Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Dynatrace's Fiscal First Quarter 2025 Earnings indicated a robust performance characterized by disciplined execution and a focus on customer value.</li><li>The company reported a 20% year-over-year growth in Annual Recurring Revenue (ARR), and subscription revenue also saw a 21% increase, with free cash flow accounting for 30% of revenue on a trailing 12-month basis.</li><li>These metrics underscore Dynatrace's ability to balance top-line growth with profitability efficiently.</li></ul>

Dynatrace's Fiscal First Quarter 2025 Earnings indicated a robust performance characterized by disciplined execution and a focus on customer value.The company reported a 20% year-over-year growth in Annual Recurring Revenue (ARR), and subscription revenue also saw a 21% increase, with free cash flow accounting for 30% of revenue on a trailing 12-month basis.These metrics underscore Dynatrace's ability to balance top-line growth with profitability efficiently.

Dynatrace Inc.: Will The Strategic Focus on DPS and Platform Expansion Pay Off? - Major Drivers

<ul><li>Dynatrace, a software intelligence company specializing in Software Intelligence Platform (SIP) and Application Performance Management, has reported an impressive Q4 FY 2024 and the full fiscal 2024 financial report.</li><li>During this period, the company achieved significant milestones and accomplishments, among them surpassing $1.5 billion in Annual Recurring Revenue (ARR), translating to 50% growth compared to the result from two years ago.</li><li>They also closed their largest new logo ever, an almost 8-figure ACV deal, and landed their first 9-figure TCV deal.</li></ul>

Dynatrace, a software intelligence company specializing in Software Intelligence Platform (SIP) and Application Performance Management, has reported an impressive Q4 FY 2024 and the full fiscal 2024 financial report.During this period, the company achieved significant milestones and accomplishments, among them surpassing $1.5 billion in Annual Recurring Revenue (ARR), translating to 50% growth compared to the result from two years ago.They also closed their largest new logo ever, an almost 8-figure ACV deal, and landed their first 9-figure TCV deal.

Dynatrace Inc.: Will The Double-Digit Subscription Revenue Growth Last? - Major Drivers

<ul><li>According to Dynatrace's fiscal third quarter 2024 earnings, the company delivered solid results driven by its ability to successfully navigate a continually changing market.</li><li>Annual recurring revenue (ARR) grew by 21% year over year, while subscription revenue increased by 23% over the same period.</li><li>Non-GAAP operating income steadily increased to $105 million representing 29% of revenue and robust free cash flow margin was delivered at 25% on a trailing 12-month basis.</li></ul>

According to Dynatrace's fiscal third quarter 2024 earnings, the company delivered solid results driven by its ability to successfully navigate a continually changing market.Annual recurring revenue (ARR) grew by 21% year over year, while subscription revenue increased by 23% over the same period.Non-GAAP operating income steadily increased to $105 million representing 29% of revenue and robust free cash flow margin was delivered at 25% on a trailing 12-month basis.

Dynatrace Inc: Demand For Observability & Application Security Can Push Their Revenues In 2024? - Major Drivers

<ul><li>Dynatrace surpassed the revenue expectations as well as the earnings expectations of Wall Street.</li><li>With a remarkable 24% year-over-year growth in ARR and a 26% increase in subscription revenue, the company achieved a 30% non-GAAP operating income.</li><li>The results underscore the rising importance of observability and application security, emphasizing the value Dynatrace provides its customers.</li></ul>

Dynatrace surpassed the revenue expectations as well as the earnings expectations of Wall Street.With a remarkable 24% year-over-year growth in ARR and a 26% increase in subscription revenue, the company achieved a 30% non-GAAP operating income.The results underscore the rising importance of observability and application security, emphasizing the value Dynatrace provides its customers.

Dynatrace Inc.: Leading the AI Revolution in Observability and Security! - Major Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

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<li>
<a href="https://www.smartkarma.com/entities/elastic-nv" target="_blank" data-smartkarma-citation="entities:27526:1" rel="noopener">Elastic NV (ESTC US)</a> reported a solid 4QFY23, reflecting a stronger-than-expected non-GAAP operating margin of ~9% and GAAP subscription gross margin of ~79%. </li>
<li>Elastic cloud revenue grew 28% y/y, representing 40% of total revenue. Elastic cloud is scaling well, and margins improved faster-than-anticipated. </li>
<li>We are concerned about slowing H1 FY24 y/y growth in total revenue and failure to achieve the $2B revenue mark in FY25. Price target to $112.</li>
</ul>



Elastic NV (ESTC US) reported a solid 4QFY23, reflecting a stronger-than-expected non-GAAP operating margin of ~9% and GAAP subscription gross margin of ~79%. 
Elastic cloud revenue grew 28% y/y, representing 40% of total revenue. Elastic cloud is scaling well, and margins improved faster-than-anticipated. 
We are concerned about slowing H1 FY24 y/y growth in total revenue and failure to achieve the $2B revenue mark in FY25. Price target to $112.


Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133

United States

Dynatrace, Inc. operates as a holding company. The Company, through its subsidiaries, develops software intelligence platform for the enterprise cloud. Dynatrace offers software intelligence platform to allow customers to modernize and automate IT operations, develop and release high quality software faster, and improve user experiences for better business outcomes.

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Dynatrace (DT US)

Dynatrace Inc.: Will The Strategic Focus on DPS and Platform Expansion Pay Off? - Major Drivers

Dynatrace's Fiscal First Quarter 2025 Earnings indicated a robust performance characterized by disciplined execution and a focus on customer...

Baptista Research

Dynatrace Inc.: Will The Double-Digit Subscription Revenue Growth Last? - Major Drivers

Dynatrace, a software intelligence company specializing in Software Intelligence Platform (SIP) and Application Performance Management, has...

Baptista Research

Dynatrace Inc: Demand For Observability & Application Security Can Push Their Revenues In 2024? - Major Drivers

According to Dynatrace's fiscal third quarter 2024 earnings, the company delivered solid results driven by its ability to successfully navigate a...

Baptista Research

Dynatrace Inc.: Leading the AI Revolution in Observability and Security! - Major Drivers

Dynatrace surpassed the revenue expectations as well as the earnings expectations of Wall Street. With a remarkable 24% year-over-year growth in...

Baptista Research

Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133

Elastic remains my top pick in the observability and search space, and I see the potential for revenue growth re-acceleration in 2024.

Andrei Zakharov

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