Dynatrace Reports First Quarter Fiscal Year 2025 Financial Results
Dynatrace (NYSE: DT) reported robust financial results for Q1 FY2025, ending June 30, 2024. Key highlights include exceeding guidance, with ARR growing 20% year-over-year on a constant currency basis to $1,541 million. Revenue reached $399 million, up 20%, while subscription revenue increased 21% to $382 million.
GAAP operating income was $42 million with an 11% margin, and non-GAAP operating income was $114 million with a 29% margin. GAAP EPS was $0.13, and non-GAAP EPS was $0.33 per diluted share. The company’s AI-driven end-to-end observability platform remains a key differentiator.
Recent business highlights include platform extensions (Site Reliability Guardian, Davis Anomaly Detection, and Vulnerabilities App) and product expansions (Kubernetes Security Posture Management). Dynatrace also strengthened partnerships, notably integrating with AWS Application Migration Service. The company repurchased 1.1 million shares for $50 million.
For Q2 FY2025, Dynatrace expects revenue between $404-$407 million and non-GAAP EPS of $0.32-$0.33.
Dynatrace (NYSE: DT) ha riportato risultati finanziari solidi per il primo trimestre dell'anno fiscale 2025, conclusosi il 30 giugno 2024. Tra i punti salienti, si segnala il superamento delle aspettative, con un ARR cresciuto del 20% su base annua, a 1.541 milioni di dollari a cambi costanti. I ricavi hanno raggiunto i 399 milioni di dollari, con un aumento del 20%, mentre i ricavi da abbonamento sono aumentati del 21% a 382 milioni di dollari.
Il reddito operativo GAAP è stato di 42 milioni di dollari con un margine dell'11%, e il reddito operativo non GAAP è stato di 114 milioni di dollari con un margine del 29%. L'EPS GAAP era di 0,13 dollari, mentre l'EPS non GAAP era di 0,33 dollari per azione diluita. La piattaforma di osservabilità end-to-end guidata dall'AI dell'azienda rimane un differenziante fondamentale.
I recenti punti salienti del business includono estensioni della piattaforma (Site Reliability Guardian, Davis Anomaly Detection, e Vulnerabilities App) e espansioni di prodotto (Kubernetes Security Posture Management). Dynatrace ha anche rafforzato le partnership, integrandosi con il servizio AWS Application Migration. L'azienda ha riacquistato 1,1 milioni di azioni per 50 milioni di dollari.
Per il secondo trimestre dell'anno fiscale 2025, Dynatrace prevede ricavi tra 404 e 407 milioni di dollari e un EPS non GAAP di 0,32-0,33 dollari.
Dynatrace (NYSE: DT) reportó resultados financieros sólidos para el primer trimestre del año fiscal 2025, finalizado el 30 de junio de 2024. Los aspectos más destacados incluyen el superamiento de las expectativas, con un ARR que creció un 20% interanual a 1,541 millones de dólares a tipos de cambio constantes. Los ingresos alcanzaron los 399 millones de dólares, un aumento del 20%, mientras que los ingresos por suscripción aumentaron un 21% a 382 millones de dólares.
Los ingresos operativos GAAP fueron de 42 millones de dólares con un margen del 11%, y los ingresos operativos no GAAP fueron de 114 millones de dólares con un margen del 29%. El EPS GAAP fue de 0.13 dólares, y el EPS no GAAP fue de 0.33 dólares por acción diluida. La plataforma de observabilidad de extremo a extremo impulsada por IA de la compañía sigue siendo un diferenciador clave.
Los recientes aspectos destacados del negocio incluyen extensiones de la plataforma (Site Reliability Guardian, Davis Anomaly Detection y Vulnerabilities App) y expansiones de productos (Kubernetes Security Posture Management). Dynatrace también fortaleció las alianzas, integrándose notablemente con el Servicio de Migración de Aplicaciones de AWS. La compañía recompró 1.1 millones de acciones por 50 millones de dólares.
Para el segundo trimestre del año fiscal 2025, Dynatrace espera ingresos entre 404 y 407 millones de dólares y un EPS no GAAP de 0.32-0.33 dólares.
다이나트레이스(Dynatrace, NYSE: DT)는 2024년 6월 30일로 종료된 2025 회계연도 1분기 강력한 재무 결과를 발표했습니다. 주요 하이라이트는 연간 기준으로 연환산 반복 수익(ARR)이 20% 증가하여 15억 4,100만 달러에 달하였으며, 예상치를 초과했습니다. 수익은 3억 9,900만 달러로 20% 증가하였고, 구독 수익은 21% 증가하여 3억 8,200만 달러에 달했습니다.
GAAP 운영 수익은 4,200만 달러로 11%의 마진을 기록하였고, 비 GAAP 운영 수익은 1억 1,400만 달러로 29%의 마진을 기록하였습니다. GAAP 주당 순이익(EPS)은 0.13달러였으며, 비 GAAP EPS는 0.33달러(희석 주식 기준)였습니다. 회사의 AI 기반 종합 관측 플랫폼은 여전히 주요 차별점으로 남아 있습니다.
최근 비즈니스 하이라이트로는 플랫폼 확장(사이트 신뢰성 가디언, 데이비스 이상 탐지, 취약점 앱)과 제품 확장(쿠버네티스 보안 태세 관리)이 포함됩니다. 다이나트레이스는 또한 AWS 애플리케이션 마이그레이션 서비스와의 통합을 통해 파트너십을 강화했습니다. 회사는 5000만 달러에 110만 주를 재매입했습니다.
2025 회계연도 2분기 동안 다이나트레이스는 4억 404만 달러에서 4억 407만 달러 사이의 수익과 비 GAAP EPS가 0.32에서 0.33달러 사이일 것으로 예상하고 있습니다.
Dynatrace (NYSE: DT) a annoncé des résultats financiers solides pour le premier trimestre de l'exercice 2025, se terminant le 30 juin 2024. Les points saillants incluent un dépassement des prévisions, avec un ARR en hausse de 20 % d'une année sur l'autre, atteignant 1,541 milliard de dollars à taux de change constant. Les revenus ont atteint 399 millions de dollars, en hausse de 20 %, tandis que les revenus d'abonnement ont augmenté de 21 % pour atteindre 382 millions de dollars.
Le bénéfice d'exploitation GAAP était de 42 millions de dollars avec une marge de 11 %, et le bénéfice d'exploitation non GAAP était de 114 millions de dollars avec une marge de 29 %. Le BPA GAAP était de 0,13 dollar, et le BPA non GAAP était de 0,33 dollar par action diluée. La plateforme d'observabilité de bout en bout, pilotée par l'IA de l'entreprise, reste un facteur de différenciation clé.
Les récents points marquants des activités incluent des extensions de la plateforme (Site Reliability Guardian, Davis Anomaly Detection et Vulnerabilities App) et des expansions de produit (Kubernetes Security Posture Management). Dynatrace a également renforcé ses partenariats, notamment en s'intégrant au service AWS Application Migration. L'entreprise a racheté 1,1 million d'actions pour 50 millions de dollars.
Pour le deuxième trimestre de l'exercice 2025, Dynatrace s'attend à des revenus compris entre 404 et 407 millions de dollars et un BPA non GAAP de 0,32 à 0,33 dollar.
Dynatrace (NYSE: DT) berichtete über solide Finanzresultate für das erste Quartal des Geschäftsjahres 2025, das am 30. Juni 2024 endete. Zu den wichtigsten Highlights gehört die Übertreffung der Prognosen, mit einem ARR-Wachstum von 20% im Jahresvergleich auf 1.541 Millionen US-Dollar bei konstanten Wechselkursen. Der Umsatz erreichte 399 Millionen US-Dollar, was einem Anstieg von 20% entspricht, während die Einnahmen aus Abonnements um 21% auf 382 Millionen US-Dollar anstiegen.
Der Betriebserfolg nach GAAP betrug 42 Millionen US-Dollar bei einer Marge von 11%, und der Betriebserfolg nach non-GAAP betrug 114 Millionen US-Dollar bei einer Marge von 29%. Der GAAP-Gewinn pro Aktie (EPS) lag bei 0,13 US-Dollar, während der non-GAAP EPS bei 0,33 US-Dollar pro verwässerter Aktie lag. Die KI-gesteuerte End-to-End-Beobachtungsplattform des Unternehmens bleibt ein Schlüsselunterscheidungsmerkmal.
Zu den jüngsten Geschäftshighlights gehören Plattformerweiterungen (Site Reliability Guardian, Davis Anomaly Detection und Vulnerabilities App) und Produkterweiterungen (Kubernetes Security Posture Management). Dynatrace hat auch Partnerschaften gestärkt, einschließlich der Integration mit dem AWS Application Migration Service. Das Unternehmen hat 1,1 Millionen Aktien für 50 Millionen US-Dollar zurückgekauft.
Für das zweite Quartal des Geschäftsjahres 2025 erwartet Dynatrace einen Umsatz von 404 bis 407 Millionen US-Dollar und einen non-GAAP EPS von 0,32 bis 0,33 US-Dollar.
- ARR grew 20% year-over-year to $1,541 million.
- Total revenue increased 20% to $399 million.
- Subscription revenue rose 21% to $382 million.
- GAAP operating margin improved to 11%.
- Non-GAAP operating margin reached 29%.
- GAAP and non-GAAP EPS were stable at $0.13 and $0.33, respectively.
- Recent product and platform expansions bolster capabilities.
- Strong partnership momentum, particularly with AWS and Microsoft.
- Repurchased 1.1 million shares for $50 million.
- Foreign exchange expected to be a headwind of $12 million on ARR and $10 million on revenue for FY2025.
Insights
Dynatrace's Q1 FY2025 results are impressive, showcasing strong growth and profitability. Key highlights include:
- ARR growth of
20% year-over-year on a constant currency basis, reaching$1.54 billion - Total revenue increase of
21% to$399 million - GAAP Operating Margin of
11% and Non-GAAP Operating Margin of29% - Non-GAAP EPS of
$0.33 , up from$0.27 last year
The company's guidance for Q2 and FY2025 remains strong, indicating continued momentum. However, investors should note the potential headwind from foreign exchange rates, which could impact ARR by
Dynatrace's strategic focus on AI-driven observability is paying off. Their 'power of 3' AI approach - combining predictive, causal and generative capabilities - is a key differentiator in the competitive observability market. Recent product launches, including:
- Site Reliability Guardian App
- Davis Anomaly Detection App
- Vulnerabilities App
- Kubernetes Security Posture Management
These demonstrate Dynatrace's commitment to innovation and addressing critical customer needs. The integration with AWS Application Migration Service and recognition as a Microsoft Partner of the Year further solidify Dynatrace's position in the cloud ecosystem. These technological advancements and partnerships are likely driving the company's strong financial performance and should continue to fuel growth in the coming quarters.
Exceeds high end of guidance across all metrics
Delivers ARR growth of
Achieves GAAP Operating Margin of
"We are pleased with our first quarter performance, which once again exceeded guidance across all our key metrics,” said Rick McConnell, Chief Executive Officer of Dynatrace. "Now more than ever, it is critical that software works perfectly. The strength of our end-to-end observability platform continues to resonate with our customers as they look to deliver the best end user experience with the highest availability and performance. Our 'power of 3' approach to AI - leveraging predictive, causal, and generative capabilities – is one of our key differentiators and sets us apart from our competitors."
First Quarter Fiscal 2025 Financial and Other Recent Business Highlights:
All growth rates are compared to the first quarter of fiscal 2024, unless otherwise noted.
Financial Highlights:
-
ARR of
$1,541 million 19% , or20% on a constant currency basis -
Total Revenue of
$399 million 20% , or21% on a constant currency basis -
Subscription Revenue of
$382 million 21% on both an as reported and on a constant currency basis -
GAAP Income from Operations of
$42 million $114 million -
GAAP EPS of
$0.13 $0.33
Business Highlights:
-
Platform extension: Dynatrace launched the following current and open preview extensions:
- Site Reliability Guardian App automates change impact analysis, helping DevOps and SRE teams make informed release decisions.
- Davis Anomaly Detection App leverages AI to detect anomalies across observability, security, and business data, enhancing real-time monitoring.
- Vulnerabilities App identifies code-level, third-party, and runtime vulnerabilities, presenting them in a prioritized view for efficient remediation efforts.
-
Product expansion: Dynatrace announced the addition of Kubernetes Security Posture Management to its existing security capabilities to enable customers to drive cloud-native application protection at scale. Also, we completed FedRAMP Moderate reauthorization to Rev.5, underscoring our intention to move toward FedRAMP High as a provider of solutions to
U.S. federal government agencies. - Partnership momentum: We became the first AWS partner to integrate with its Application Migration Service. Organizations can automatically install and deploy the Dynatrace platform once they start running in the AWS Cloud. In addition, Dynatrace was named a Winner in the 2024 Microsoft Americas Partner of the Year Awards for our ability to innovate and collaborate to foster customer success, AI and CoPilot activation, and transform businesses on the Microsoft Cloud.
Share Repurchase Program
-
Through June 30, 2024, Dynatrace repurchased approximately 1.1 million shares for approximately
$50 million $500 million
First Quarter 2025 Financial Highlights (Unaudited – In thousands, except per share data) |
|||||||
|
Three Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Key Operating Metric: |
|
|
|
||||
Annual recurring revenue (ARR) |
$ |
1,540,631 |
|
|
$ |
1,293,895 |
|
Year-over-Year Increase |
|
19 |
% |
|
|
||
Year-over-Year Increase - constant currency (*) |
|
20 |
% |
|
|
||
|
|
|
|
||||
Revenue: |
|
|
|
||||
Total revenue |
$ |
399,220 |
|
|
$ |
332,886 |
|
Year-over-Year Increase |
|
20 |
% |
|
|
||
Year-over-Year Increase - constant currency (*) |
|
21 |
% |
|
|
||
|
|
|
|
||||
Subscription revenue |
$ |
381,576 |
|
|
$ |
316,454 |
|
Year-over-Year Increase |
|
21 |
% |
|
|
||
Year-over-Year Increase - constant currency (*) |
|
21 |
% |
|
|
||
|
|
|
|
||||
GAAP Financial Measures: |
|
|
|
||||
GAAP income from operations |
$ |
42,029 |
|
|
$ |
34,288 |
|
GAAP operating margin |
|
11 |
% |
|
|
10 |
% |
|
|
|
|
||||
GAAP net income |
$ |
38,620 |
|
|
$ |
38,188 |
|
|
|
|
|
||||
GAAP net income per share - diluted |
$ |
0.13 |
|
|
$ |
0.13 |
|
|
|
|
|
||||
GAAP shares outstanding - diluted |
|
300,966 |
|
|
|
296,387 |
|
|
|
|
|
||||
Net cash provided by operating activities |
$ |
230,741 |
|
|
$ |
133,903 |
|
|
|
|
|
||||
Non-GAAP Financial Measures (*): |
|
|
|
||||
Non-GAAP income from operations |
$ |
114,250 |
|
|
$ |
92,075 |
|
Non-GAAP operating margin |
|
29 |
% |
|
|
28 |
% |
|
|
|
|
||||
Non-GAAP net income |
$ |
98,926 |
|
|
$ |
79,045 |
|
|
|
|
|
||||
Non-GAAP net income per share - diluted |
$ |
0.33 |
|
|
$ |
0.27 |
|
|
|
|
|
||||
Non-GAAP shares outstanding - diluted |
|
300,966 |
|
|
|
296,387 |
|
|
|
|
|
||||
Free Cash Flow |
$ |
227,382 |
|
|
$ |
123,636 |
|
* For additional information, please see the "Non-GAAP Financial Measures" and "Key Metrics -Non-GAAP and Other Metrics" section of this press release. |
Financial Outlook
Based on information available as of August 7, 2024, Dynatrace is issuing guidance for the second quarter and maintaining its previous guidance for full year fiscal 2025 in the table below.
This guidance reflects foreign exchange rates as of July 31, 2024. We now expect foreign exchange to be a headwind of approximately
Growth rates for ARR, Total revenue, and Subscription revenue are presented in constant currency to provide better visibility into the underlying growth of the business.
All growth rates below are compared to the second quarter and full year of fiscal 2024.
(In millions, except per share data) |
Q2 Fiscal 2025 Guidance |
Total revenue |
|
As reported |
|
Constant currency |
|
Subscription revenue |
|
As reported |
|
Constant currency |
|
Non-GAAP income from operations |
|
Non-GAAP operating margin |
|
Non-GAAP net income |
|
Non-GAAP net income per diluted share |
|
Diluted weighted average shares outstanding |
302 - 303 |
(In millions, except per share data) |
Current Guidance Fiscal 2025 |
|
Prior Guidance Fiscal 2025* |
|
Guidance Change at Midpoint |
ARR |
|
|
|
|
— |
As reported |
|
|
|
|
— |
Constant currency |
|
|
|
|
— |
Total revenue |
|
|
|
|
— |
As reported |
|
|
|
|
— |
Constant currency |
|
|
|
|
— |
Subscription revenue |
|
|
|
|
— |
As reported |
|
|
|
|
— |
Constant currency |
|
|
|
|
— |
Non-GAAP income from operations |
|
|
|
|
— |
Non-GAAP operating margin |
|
|
|
|
— |
Non-GAAP net income |
|
|
|
|
— |
Non-GAAP net income per diluted share |
|
|
|
|
— |
Diluted weighted average shares outstanding |
303 - 305 |
|
303 - 305 |
|
— |
Free cash flow |
|
|
|
|
— |
Free cash flow margin |
|
|
|
|
— |
*Prior guidance was issued on May 15, 2024. |
Conference Call and Webcast Information
Dynatrace will host a conference call and live webcast to discuss its results and business outlook for investors and analysts at 8:00 a.m. Eastern Time today, August 7, 2024. To access the conference call from the
An audio replay of the call will also be available until 11:59 p.m. Eastern Time on October 6, 2024, by dialing (877) 660-6853 from the
We announce material financial information to our investors using our Investor Relations website, press releases, SEC filings and public conference calls and webcasts. We also use these channels to disclose information about the company, our planned financial and other announcements, attendance at upcoming investor and industry conferences, and for complying with our disclosure obligations under Regulation FD.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures as defined by Regulation G, including non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, and free cash flow. We also use or discuss non-GAAP financial measures in conference calls, slide presentations and webcasts.
We use these non-GAAP financial measures for financial and operational decision-making purposes, and as a means to evaluate period-to-period comparisons and liquidity. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.
The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Our non-GAAP financial measures may not provide information that is directly comparable to similarly titled metrics provided by other companies.
Non-GAAP financial measures are defined in this press release and the tables included in this press release include reconciliations of historical non-GAAP financial measures to their most directly comparable GAAP measures.
We also include non-GAAP financial measures in our financial outlook included in this press release. Reconciliations of forward-looking non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share, and free cash flow guidance to the most directly comparable GAAP measures are not available without unreasonable efforts due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs, as well as unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
Definitions - Non-GAAP and Other Metrics
Annual Recurring Revenue (ARR) is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of ARR any revenues derived from month-to-month agreements and/or product usage overage billings.
Constant Currency amounts for ARR, Total Revenue and Subscription Revenue are presented to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign exchange rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than
Non-GAAP Income from Operations is defined as GAAP income from operations adjusted for the following items: share-based compensation; employer payroll taxes on employee stock transactions; amortization of intangibles; transaction, restructuring and other non-recurring or unusual items that may arise from time to time. The related margin is non-GAAP income from operations expressed as a percentage of total revenue.
Non-GAAP Net Income is defined as GAAP net income adjusted for the following items: income tax expense/benefit; non-GAAP effective cash taxes; net interest expense and income; net cash received from and paid for interest; share-based compensation; employer payroll taxes on employee stock transactions, amortization of intangibles; gains and losses on currency translation; and transaction, restructuring and other non-recurring or unusual items that may arise from time to time. Non-GAAP net income per diluted share is calculated as non-GAAP net income divided by the diluted weighted average shares outstanding used to compute GAAP net income per diluted share.
Free Cash Flow is defined as the net cash provided by or used in operating activities less capital expenditures, reflected as purchase of property and equipment and capitalized software additions in our financial statements. The related margin is free cash flow expressed as a percentage of total revenue.
About Dynatrace
Dynatrace exists to make the world's software work perfectly. Our end-to-end platform combines broad and deep observability and continuous runtime application security with the most advanced AIOps to provide answers and intelligent automation from data at an enormous scale. This enables innovators to modernize and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences. That's why the world's largest organizations trust the Dynatrace® platform to accelerate digital transformation.
Cautionary Language Concerning Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to moving toward FedRAMP High, benefits to organizations from using Dynatrace, and financial and business outlook, including our financial guidance for the second quarter and full year of fiscal 2025. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our ability to maintain our revenue growth rates in future periods; market adoption of our product offerings; continued demand for, and spending on, our solutions; our ability to innovate and develop solutions that meet customer needs, including through Davis AI; the ability of our platform and solutions to effectively interoperate with customers’ IT infrastructures; our ability to acquire new customers and retain and expand our relationships with existing customers; our ability to expand our sales and marketing capabilities; our ability to compete; our ability to maintain successful relationships with partners; security breaches, other security incidents and any real or perceived errors, failures, defects or vulnerabilities in our solutions; our ability to protect our intellectual property; our ability to hire and retain necessary qualified employees to grow our business and expand our operations; our ability to successfully complete acquisitions and to integrate newly acquired businesses and offerings; the effect on our business of the macroeconomic environment, associated global economic conditions and geopolitical disruption; and other risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K, subsequent Quarterly Report(s) on Form 10-Q, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
DYNATRACE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited – In thousands, except per share data) |
|||||||
|
Three Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Revenue: |
|
|
|
||||
Subscription |
$ |
381,576 |
|
|
$ |
316,454 |
|
Service |
|
17,644 |
|
|
|
16,432 |
|
Total revenue |
|
399,220 |
|
|
|
332,886 |
|
Cost of revenue: |
|
|
|
||||
Cost of subscription |
|
53,572 |
|
|
|
42,904 |
|
Cost of service |
|
16,802 |
|
|
|
15,542 |
|
Amortization of acquired technology |
|
4,379 |
|
|
|
3,898 |
|
Total cost of revenue |
|
74,753 |
|
|
|
62,344 |
|
Gross profit |
|
324,467 |
|
|
|
270,542 |
|
|
|
|
|
||||
Operating expenses: |
|
|
|
||||
Research and development |
|
87,578 |
|
|
|
66,282 |
|
Sales and marketing |
|
145,106 |
|
|
|
125,117 |
|
General and administrative |
|
44,978 |
|
|
|
39,095 |
|
Amortization of other intangibles |
|
4,776 |
|
|
|
5,760 |
|
Total operating expenses |
|
282,438 |
|
|
|
236,254 |
|
Income from operations |
|
42,029 |
|
|
|
34,288 |
|
Interest income, net |
|
12,775 |
|
|
|
7,146 |
|
Other (expense) income, net |
|
(2,035 |
) |
|
|
252 |
|
Income before income taxes |
|
52,769 |
|
|
|
41,686 |
|
Income tax expense |
|
(14,149 |
) |
|
|
(3,498 |
) |
Net income |
$ |
38,620 |
|
|
$ |
38,188 |
|
Net income per share: |
|
|
|
||||
Basic |
$ |
0.13 |
|
|
$ |
0.13 |
|
Diluted |
$ |
0.13 |
|
|
$ |
0.13 |
|
Weighted average shares outstanding: |
|
|
|
||||
Basic |
|
297,358 |
|
|
|
291,325 |
|
Diluted |
|
300,966 |
|
|
|
296,387 |
|
UNAUDITED SHARE-BASED COMPENSATION |
|||||||
|
Three Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Cost of revenue |
$ |
7,730 |
|
$ |
5,488 |
||
Research and development |
|
21,580 |
|
|
13,264 |
||
Sales and marketing |
|
16,022 |
|
|
13,999 |
||
General and administrative |
|
12,325 |
|
|
7,767 |
||
Total share-based compensation |
$ |
57,657 |
|
$ |
40,518 |
||
DYNATRACE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) |
|||||||
|
June 30, 2024 |
|
March 31, 2024 |
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
930,315 |
|
|
$ |
778,983 |
|
Short-term investments |
|
82,210 |
|
|
|
57,891 |
|
Accounts receivable, net |
|
244,996 |
|
|
|
602,739 |
|
Deferred commissions, current |
|
99,478 |
|
|
|
98,935 |
|
Prepaid expenses and other current assets |
|
67,442 |
|
|
|
66,749 |
|
Total current assets |
|
1,424,441 |
|
|
|
1,605,297 |
|
Long-term investments |
|
54,711 |
|
|
|
46,350 |
|
Property and equipment, net |
|
51,212 |
|
|
|
53,325 |
|
Operating lease right-of-use assets, net |
|
71,480 |
|
|
|
61,390 |
|
Goodwill |
|
1,334,954 |
|
|
|
1,335,494 |
|
Intangible assets, net |
|
41,159 |
|
|
|
50,995 |
|
Deferred tax assets, net |
|
160,458 |
|
|
|
138,836 |
|
Deferred commissions, non-current |
|
89,441 |
|
|
|
93,310 |
|
Other assets |
|
29,806 |
|
|
|
24,782 |
|
Total assets |
$ |
3,257,662 |
|
|
$ |
3,409,779 |
|
|
|
|
|
||||
Liabilities and shareholders' equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
3,895 |
|
|
$ |
21,410 |
|
Accrued expenses, current |
|
169,899 |
|
|
|
233,675 |
|
Deferred revenue, current |
|
862,084 |
|
|
|
987,953 |
|
Operating lease liabilities, current |
|
15,350 |
|
|
|
15,513 |
|
Total current liabilities |
|
1,051,228 |
|
|
|
1,258,551 |
|
Deferred revenue, non-current |
|
52,178 |
|
|
|
62,308 |
|
Accrued expenses, non-current |
|
19,572 |
|
|
|
18,404 |
|
Operating lease liabilities, non-current |
|
66,055 |
|
|
|
54,013 |
|
Deferred tax liabilities |
|
994 |
|
|
|
1,013 |
|
Total liabilities |
|
1,190,027 |
|
|
|
1,394,289 |
|
|
|
|
|
||||
Shareholders' equity: |
|
|
|
||||
Common shares, |
|
298 |
|
|
|
297 |
|
Additional paid-in capital |
|
2,263,195 |
|
|
|
2,249,349 |
|
Accumulated deficit |
|
(160,137 |
) |
|
|
(198,757 |
) |
Accumulated other comprehensive loss |
|
(35,721 |
) |
|
|
(35,399 |
) |
Total shareholders' equity |
|
2,067,635 |
|
|
|
2,015,490 |
|
Total liabilities and shareholders' equity |
$ |
3,257,662 |
|
|
$ |
3,409,779 |
|
DYNATRACE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited – In thousands) |
|||||||
|
Three Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
38,620 |
|
|
$ |
38,188 |
|
Adjustments to reconcile net income to cash provided by operations: |
|
|
|
||||
Depreciation |
|
4,305 |
|
|
|
3,916 |
|
Amortization |
|
9,672 |
|
|
|
9,681 |
|
Share-based compensation |
|
57,657 |
|
|
|
40,518 |
|
Deferred income taxes |
|
(22,649 |
) |
|
|
(19,327 |
) |
Other |
|
1,601 |
|
|
|
(154 |
) |
Net change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
355,441 |
|
|
|
204,228 |
|
Deferred commissions |
|
2,121 |
|
|
|
8,545 |
|
Prepaid expenses and other assets |
|
(8,064 |
) |
|
|
(16,426 |
) |
Accounts payable and accrued expenses |
|
(78,265 |
) |
|
|
(39,641 |
) |
Operating leases, net |
|
1,791 |
|
|
|
277 |
|
Deferred revenue |
|
(131,489 |
) |
|
|
(95,902 |
) |
Net cash provided by operating activities |
|
230,741 |
|
|
|
133,903 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(3,359 |
) |
|
|
(10,267 |
) |
Acquisition of a business, net of cash acquired |
|
(100 |
) |
|
|
— |
|
Purchases of investments |
|
(40,886 |
) |
|
|
— |
|
Proceeds from sales and maturities of investments |
|
8,750 |
|
|
|
— |
|
Net cash used in investing activities |
|
(35,595 |
) |
|
|
(10,267 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Payments of deferred consideration related to capitalized software additions |
|
(552 |
) |
|
|
— |
|
Proceeds from employee stock purchase plan |
|
10,389 |
|
|
|
9,584 |
|
Proceeds from exercise of stock options |
|
4,215 |
|
|
|
13,190 |
|
Repurchases of common stock |
|
(48,556 |
) |
|
|
— |
|
Taxes paid related to net share settlement of equity awards |
|
(8,306 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(42,810 |
) |
|
|
22,774 |
|
|
|
|
|
||||
Effect of exchange rates on cash and cash equivalents |
|
(1,004 |
) |
|
|
(1,055 |
) |
|
|
|
|
||||
Net increase in cash and cash equivalents |
|
151,332 |
|
|
|
145,355 |
|
|
|
|
|
||||
Cash and cash equivalents, beginning of period |
|
778,983 |
|
|
|
555,348 |
|
Cash and cash equivalents, end of period |
$ |
930,315 |
|
|
$ |
700,703 |
|
DYNATRACE, INC. GAAP to Non-GAAP Reconciliations (Unaudited - In thousands, except percentages) |
|||||||||||||||||||||||
|
Three Months Ended June 30, 2024 |
||||||||||||||||||||||
|
GAAP |
|
Share-based compensation |
|
Employer payroll taxes on employee stock transactions |
|
Amortization of intangibles |
|
Transaction, restructuring, and other |
|
Non-GAAP |
||||||||||||
Non-GAAP income from operations: |
|||||||||||||||||||||||
Cost of revenue |
$ |
74,753 |
|
|
$ |
(7,730 |
) |
|
$ |
(886 |
) |
|
$ |
(4,379 |
) |
|
$ |
— |
|
|
$ |
61,758 |
|
Gross profit |
|
324,467 |
|
|
|
7,730 |
|
|
|
886 |
|
|
|
4,379 |
|
|
|
— |
|
|
|
337,462 |
|
Gross margin |
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
85 |
% |
||||||||
Research and development |
|
87,578 |
|
|
|
(21,580 |
) |
|
|
(2,409 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
63,586 |
|
Sales and marketing |
|
145,106 |
|
|
|
(16,022 |
) |
|
|
(1,504 |
) |
|
|
— |
|
|
|
— |
|
|
|
127,580 |
|
General and administrative |
|
44,978 |
|
|
|
(12,325 |
) |
|
|
(610 |
) |
|
|
— |
|
|
|
3 |
|
|
|
32,046 |
|
Amortization of other intangibles |
|
4,776 |
|
|
|
— |
|
|
|
— |
|
|
|
(4,776 |
) |
|
|
— |
|
|
|
— |
|
Income from operations |
$ |
42,029 |
|
|
$ |
57,657 |
|
|
$ |
5,409 |
|
|
$ |
9,155 |
|
|
$ |
— |
|
|
$ |
114,250 |
|
Operating margin |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
29 |
% |
||||||||
|
Three Months Ended June 30, 2023 |
||||||||||||||||||||||
|
GAAP |
|
Share-based compensation |
|
Employer payroll taxes on employee stock transactions |
|
Amortization of intangibles |
|
Transaction, restructuring, and other |
|
Non-GAAP |
||||||||||||
Non-GAAP income from operations: |
|||||||||||||||||||||||
Cost of revenue |
$ |
62,344 |
|
|
$ |
(5,488 |
) |
|
$ |
(923 |
) |
|
$ |
(3,898 |
) |
|
$ |
— |
|
|
$ |
52,035 |
|
Gross profit |
|
270,542 |
|
|
|
5,488 |
|
|
|
923 |
|
|
|
3,898 |
|
|
|
— |
|
|
|
280,851 |
|
Gross margin |
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
84 |
% |
||||||||
Research and development |
|
66,282 |
|
|
|
(13,264 |
) |
|
|
(2,262 |
) |
|
|
— |
|
|
|
— |
|
|
|
50,756 |
|
Sales and marketing |
|
125,117 |
|
|
|
(13,999 |
) |
|
|
(1,552 |
) |
|
|
— |
|
|
|
— |
|
|
|
109,566 |
|
General and administrative |
|
39,095 |
|
|
|
(7,767 |
) |
|
|
(466 |
) |
|
|
— |
|
|
|
(2,408 |
) |
|
|
28,454 |
|
Amortization of other intangibles |
|
5,760 |
|
|
|
— |
|
|
|
— |
|
|
|
(5,760 |
) |
|
|
— |
|
|
|
— |
|
Income from operations |
$ |
34,288 |
|
|
$ |
40,518 |
|
|
$ |
5,203 |
|
|
$ |
9,658 |
|
|
$ |
2,408 |
|
|
$ |
92,075 |
|
Operating margin |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
28 |
% |
||||||||
DYNATRACE, INC. GAAP to Non-GAAP Reconciliations (Unaudited - In thousands, except per share data) |
|||||||
|
Three Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Non-GAAP net income: |
|
|
|
||||
Net income |
$ |
38,620 |
|
|
$ |
38,188 |
|
Income tax expense |
|
14,149 |
|
|
|
3,498 |
|
Non-GAAP effective cash tax |
|
(27,094 |
) |
|
|
(18,542 |
) |
Interest income, net |
|
(12,775 |
) |
|
|
(7,146 |
) |
Cash received from interest, net |
|
11,770 |
|
|
|
5,512 |
|
Share-based compensation |
|
57,657 |
|
|
|
40,518 |
|
Employer payroll taxes on employee stock transactions |
|
5,409 |
|
|
|
5,203 |
|
Amortization of intangibles |
|
9,155 |
|
|
|
9,658 |
|
Transaction, restructuring, and other |
|
— |
|
|
|
2,408 |
|
Loss (gain) on currency translation |
|
2,035 |
|
|
|
(252 |
) |
Non-GAAP net income |
$ |
98,926 |
|
|
$ |
79,045 |
|
|
|
|
|
||||
Share count: |
|
|
|
||||
Weighted-average shares outstanding - basic |
|
297,358 |
|
|
|
291,325 |
|
Weighted-average shares outstanding - diluted |
|
300,966 |
|
|
|
296,387 |
|
|
|
|
|
||||
Shares used in non-GAAP per share calculations: |
|
|
|
||||
Weighted-average shares outstanding - basic |
|
297,358 |
|
|
|
291,325 |
|
Weighted-average shares outstanding - diluted |
|
300,966 |
|
|
|
296,387 |
|
|
|
|
|
||||
Non-GAAP net income per share: |
|
|
|
||||
Net income per share - basic |
$ |
0.13 |
|
|
$ |
0.13 |
|
Net income per share - diluted |
$ |
0.13 |
|
|
$ |
0.13 |
|
Non-GAAP net income per share - basic |
$ |
0.33 |
|
|
$ |
0.27 |
|
Non-GAAP net income per share - diluted |
$ |
0.33 |
|
|
$ |
0.27 |
|
|
Three Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Free cash flow: |
|
|
|
||||
Net cash provided by operating activities |
$ |
230,741 |
|
|
$ |
133,903 |
|
Purchase of property and equipment |
|
(3,359 |
) |
|
|
(10,267 |
) |
Capitalized software additions |
|
— |
|
|
|
— |
|
Free cash flow |
$ |
227,382 |
|
|
$ |
123,636 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807859882/en/
Investor Contact:
Noelle Faris
VP, Investor Relations
Noelle.Faris@dynatrace.com
Media Relations:
Kristy Campbell
VP, Brand and Communications
Kristy.Campbell@dynatrace.com
Source: Dynatrace
FAQ
What were Dynatrace's Q1 FY2025 financial results?
What is the revenue guidance for Dynatrace in Q2 FY2025?
How did Dynatrace's operating margins perform in Q1 FY2025?
What new product features did Dynatrace launch recently?
How is the foreign exchange impacting Dynatrace's FY2025 financials?
