TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Equity Bottom-Up

<ul>
<li>Elastic just dramatically raised its revenue guidance for FY2025...implying a massive acceleration in revenue growth that the 18% move in the stock underplayed.</li>
<li>Dynatrace is a wildly profitable software company trading at a significant discount to its Rule of 40 metrics.</li>
<li>The overall observability space is red hot, unimpacted by macro factors and being overlooked by software investors.</li>
</ul>


Elastic just dramatically raised its revenue guidance for FY2025...implying a massive acceleration in revenue growth that the 18% move in the stock underplayed.
Dynatrace is a wildly profitable software company trading at a significant discount to its Rule of 40 metrics.
The overall observability space is red hot, unimpacted by macro factors and being overlooked by software investors.


Observability Is Not Just Datadog: Why Elastic and Dynatrace Are Great Longs

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.

<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

<ul>
<li>Following takeover rumors surrounding <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a> , private equity firms finally agreed to acquire a US-based low-cost observability provider for ~$6.5B.</li>
<li>American private equity firm Francisco Partners and global alternative asset manager TPG offered $87 per <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a> share in an all-cash transaction.</li>
<li>The <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a> Board of Directors approved the buyout deal, and is expected to close in late 2023 or early 2024.</li>
</ul>


Following takeover rumors surrounding New Relic Inc (NEWR US) , private equity firms finally agreed to acquire a US-based low-cost observability provider for ~$6.5B.
American private equity firm Francisco Partners and global alternative asset manager TPG offered $87 per New Relic Inc (NEWR US) share in an all-cash transaction.
The New Relic Inc (NEWR US) Board of Directors approved the buyout deal, and is expected to close in late 2023 or early 2024.


New Relic Takeover Valuation Analysis: The Buyout Price Looks Reasonable

<ul><li>Dynatrace Inc. delivered a strong result and managed an all-around beat in the quarter.</li><li>With a new CRO and a strong vision for the future, Dynatrace is in a good position in the cloud-based software landscape.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Dynatrace Inc. delivered a strong result and managed an all-around beat in the quarter.With a new CRO and a strong vision for the future, Dynatrace is in a good position in the cloud-based software landscape.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Dynatrace Inc.: Will The Rookout Acquisition Become A Major Growth Catalyst? - Key Drivers

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)

Observability Is Not Just Datadog: Why Elastic and Dynatrace Are Great Longs

Observability software stocks are being overlooked in the recent valuation downdraft. Elastic is our top pick...it had a massive revenue guidance...

Aaron Gabin

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

New Relic Takeover Valuation Analysis: The Buyout Price Looks Reasonable

Private equity firms Francisco Partners and TPG have agreed to acquire New Relic for ~$6.5B, with the deal expected to close in late 2023 or early...

Andrei Zakharov

Dynatrace Inc.: Will The Rookout Acquisition Become A Major Growth Catalyst? - Key Drivers

Dynatrace Inc. delivered a strong result and managed an all-around beat in the quarter. With a new CRO and a strong vision for the future,...

Baptista Research

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52-week Range

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Observability Is Not Just Datadog: Why Elastic and Dynatrace Are Great Longs

Observability software stocks are being overlooked in the recent valuation downdraft. Elastic is our top pick...it had a massive revenue guidance...

Aaron Gabin

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

New Relic Takeover Valuation Analysis: The Buyout Price Looks Reasonable

​Private equity firms Francisco Partners and TPG have agreed to acquire New Relic for ~$6.5B, with the deal expected to close in late 2023 or early...

Andrei Zakharov

Dynatrace Inc.: Will The Rookout Acquisition Become A Major Growth Catalyst? - Key Drivers

Dynatrace Inc. delivered a strong result and managed an all-around beat in the quarter. With a new CRO and a strong vision for the future,...

Baptista Research

Private equity firms Francisco Partners and TPG have agreed to acquire New Relic for ~$6.5B, with the deal expected to close in late 2023 or early...