This Small Cloud AI Stock Is Off to a Hot Start in 2023 -- Is It a Buy Now?
2022 was a long and painful year for the cloud software industry. The bear market brought valuations down in dramatic fashion as early pandemic euphoria over the strength of the digital economy burned off.
Many investors are still worried about 2023, though. A recession is possible, and although the cloud market is still in high-growth mode, customers are taking longer to sign new deals as they look for ways to cut costs. But it's not all doom and gloom, and some cloud stocks are actually faring far better than what was feared. Dynatrace (NYSE: DT) is one of those companies.
I love it when companies consistently under promise and over deliver. That's exactly what Dynatrace just did. In its third quarter of fiscal 2023 (for Dynatrace, the three months ended December 2022), it handily beat its own guidance provided a few months ago. Annualized recurring revenue (ARR, an important metric for software subscription companies) was $1.16 billion, up 25% year over year. When backing out the effects of currency exchange (a result of a strong U.S. dollar, which has been wiping out growth for all sorts of multinational companies), ARR was up 28% year over year.
Source Fool.com
