Dynatrace Reports Third Quarter Fiscal Year 2025 Financial Results
Dynatrace (NYSE: DT) reported strong Q3 FY2025 financial results, exceeding guidance across key metrics. The company achieved Annual Recurring Revenue (ARR) of $1.647 billion, representing an 18% year-over-year growth on a constant currency basis. Total revenue reached $436 million, up 20% on a constant currency basis, while subscription revenue grew 21% to $417 million.
The company demonstrated solid profitability with a GAAP Operating Margin of 11% and Non-GAAP Operating Margin of 30%. During Q3, Dynatrace continued its share repurchase program, spending $40 million to buy back 732,000 shares at an average price of $54.64. The company also completed an intra-entity IP transfer, generating a significant tax benefit of $320.9 million.
Looking ahead, Dynatrace increased its full-year fiscal 2025 guidance, projecting ARR between $1.705-$1.715 billion and total revenue of $1.686-$1.691 billion, despite facing foreign exchange headwinds of approximately $38 million on ARR and $17 million on revenue.
Dynatrace (NYSE: DT) ha riportato risultati finanziari solidi per il terzo trimestre dell'anno fiscale 2025, superando le previsioni in vari indicatori chiave. L'azienda ha raggiunto un Annual Recurring Revenue (ARR) di 1,647 miliardi di dollari, che rappresenta una crescita del 18% rispetto all'anno precedente con tassi di cambio costanti. Il fatturato totale ha raggiunto i 436 milioni di dollari, in aumento del 20% su base di valuta costante, mentre le entrate da abbonamenti sono cresciute del 21% arrivando a 417 milioni di dollari.
L'azienda ha dimostrato una solidità nella redditività con un GAAP Operating Margin dell'11% e un Margine Operativo Non-GAAP del 30%. Durante il terzo trimestre, Dynatrace ha continuato il suo programma di riacquisto di azioni, spendendo 40 milioni di dollari per riacquistare 732.000 azioni a un prezzo medio di 54,64 dollari. L'azienda ha anche completato un trasferimento di IP intra-ente, generando un significativo vantaggio fiscale di 320,9 milioni di dollari.
Guardando al futuro, Dynatrace ha aumentato le previsioni per l'intero anno fiscale 2025, proiettando un ARR compreso tra 1,705 e 1,715 miliardi di dollari e un fatturato totale tra 1,686 e 1,691 miliardi di dollari, nonostante si trovi ad affrontare pressioni delle valute estere di circa 38 milioni di dollari su ARR e 17 milioni di dollari sul fatturato.
Dynatrace (NYSE: DT) reportó resultados financieros sólidos para el tercer trimestre del año fiscal 2025, superando las expectativas en métricas clave. La empresa alcanzó un Annual Recurring Revenue (ARR) de 1.647 millones de dólares, lo que representa un crecimiento del 18% año tras año a tipo de cambio constante. Los ingresos totales alcanzaron los 436 millones de dólares, un aumento del 20% a tipo de cambio constante, mientras que los ingresos por suscripción crecieron un 21% hasta 417 millones de dólares.
La empresa demostró una sólida rentabilidad con un GAAP Operating Margin del 11% y un Margen Operativo No-GAAP del 30%. Durante el tercer trimestre, Dynatrace continuó su programa de recompra de acciones, gastando 40 millones de dólares para recomprar 732,000 acciones a un precio promedio de 54.64 dólares. La empresa también completó una transferencia de IP intra-ente, generando un beneficio fiscal significativo de 320.9 millones de dólares.
De cara al futuro, Dynatrace aumentó su guía para todo el año fiscal 2025, proyectando un ARR entre 1.705 y 1.715 millones de dólares y un ingreso total de 1.686 a 1.691 millones de dólares, a pesar de enfrentar presiones cambiarias de aproximadamente 38 millones de dólares en ARR y 17 millones de dólares en ingresos.
다이나트레이스 (NYSE: DT)는 2025 회계연도 3분기 강력한 재무 결과를 발표하며 주요 지표에서 가이던스를 초과했습니다. 회사는 정기 구독 수익 (ARR) 16억 4,700만 달러를 달성했으며, 이는 연간 18%의 성장률을 나타냅니다 (환율 고정 기준). 총 수익은 4억 3,600만 달러에 달하며, 이는 환율 고정 기준으로 20% 증가한 수치입니다. 구독 수익은 21% 증가하여 4억 1,700만 달러에 도달했습니다.
회사는 GAAP 운영 마진 11%와 비 GAAP 운영 마진 30%로 안정적인 수익성을 보여주었습니다. 3분기 동안 다이나트레이스는 자사주 매입 프로그램을 지속적으로 진행하여 4천만 달러를 사용하여 평균 54.64달러에 73만 2천 주를 재매입했습니다. 회사는 또한 주요 세금 혜택인 3억 2,090만 달러를 창출하는 내부 IP 이전을 완료했습니다.
앞으로 다이나트레이스는 2025 회계연도 전년 총 가이던스를 상향 조정하여 ARR을 17억 5백만 달러에서 17억 1,500만 달러 사이로, 총 수익은 16억 8,600만 달러에서 16억 9,100만 달러 사이로 예상하고 있으며, ARR과 수익에 각각 약 3,800만 달러 및 1,700만 달러의 외환 영향에 직면하고 있습니다.
Dynatrace (NYSE: DT) a publié des résultats financiers solides pour le troisième trimestre de l'exercice 2025, dépassant les prévisions sur des indicateurs clés. L'entreprise a réalisé un Annual Recurring Revenue (ARR) de 1,647 milliard de dollars, représentant une croissance de 18 % d'une année sur l'autre sur une base de monnaie constante. Le chiffre d'affaires total a atteint 436 millions de dollars, en hausse de 20 % sur une base de monnaie constante, tandis que le chiffre d'affaires des abonnements a augmenté de 21 % pour atteindre 417 millions de dollars.
L'entreprise a démontré une rentabilité solide avec une GAAP Operating Margin de 11 % et une marge opérationnelle Non-GAAP de 30 %. Au cours du troisième trimestre, Dynatrace a poursuivi son programme de rachat d'actions, dépensant 40 millions de dollars pour racheter 732 000 actions à un prix moyen de 54,64 dollars. L'entreprise a également finalisé un transfert de propriété intellectuelle intra-entreprise, générant un avantage fiscal significatif de 320,9 millions de dollars.
En regardant vers l'avenir, Dynatrace a augmenté ses prévisions pour l'exercice 2025, projetant un ARR entre 1,705 et 1,715 milliard de dollars et un chiffre d'affaires total de 1,686 à 1,691 milliard de dollars, malgré des vents contraires en matière de change d'environ 38 millions de dollars sur l'ARR et 17 millions de dollars sur le chiffre d'affaires.
Dynatrace (NYSE: DT) hat starke Finanzzahlen für das dritte Quartal des Geschäftsjahres 2025 gemeldet und dabei die Erwartungen in wichtigen Kennzahlen übertroffen. Das Unternehmen erreichte ein Annual Recurring Revenue (ARR) von 1,647 Milliarden US-Dollar, was einem Wachstum von 18% im Jahresvergleich auf Basis konstanter Währung entspricht. Der Gesamtumsatz betrug 436 Millionen US-Dollar, was einem Anstieg von 20% auf konstanter Währungsbasis entspricht, während die Abonnement-Einnahmen um 21% auf 417 Millionen US-Dollar anstiegen.
Das Unternehmen zeigte eine solide Rentabilität mit einer GAAP Operating Margin von 11% und einer Non-GAAP Operating Margin von 30%. Im dritten Quartal setzte Dynatrace sein Aktienrückkaufprogramm fort und gab 40 Millionen US-Dollar aus, um 732.000 Aktien zu einem Durchschnittspreis von 54,64 US-Dollar zurückzukaufen. Das Unternehmen schloss auch eine interne IP-Übertragung ab, die einen erheblichen Steuervorteil von 320,9 Millionen US-Dollar generierte.
Für die Zukunft erhöhte Dynatrace seine Prognose für das gesamte Geschäftsjahr 2025 und erwartet ein ARR zwischen 1,705 und 1,715 Milliarden US-Dollar sowie einen Gesamtumsatz von 1,686 bis 1,691 Milliarden US-Dollar, obwohl das Unternehmen mit Währungsrisiken von etwa 38 Millionen US-Dollar für das ARR und 17 Millionen US-Dollar für den Umsatz konfrontiert ist.
- ARR growth of 18% year-over-year to $1.647 billion on constant currency
- Total revenue increased 20% to $436 million on constant currency
- Subscription revenue grew 21% to $417 million on constant currency
- Non-GAAP Operating Margin improved to 30% from 29% year-over-year
- Raised full-year fiscal 2025 guidance for revenue and earnings
- $320.9 million tax benefit from IP transfer
- Foreign exchange headwinds of $38 million expected on ARR
- Decreased free cash flow from $67.4 million to $37.6 million year-over-year
Insights
Dynatrace delivered an exceptionally strong Q3 FY2025, marked by acceleration across key metrics and strategic positioning for future growth. The
The raised full-year guidance is particularly impressive considering the
Strategic developments are equally noteworthy: Leadership positions in Cloud-Native Observability, Security Quadrants and Kubernetes Observability validate Dynatrace's technical superiority. The AWS EMEA partnership and Microsoft MISA membership strengthen the company's enterprise presence and expand its total addressable market. The
The tax-efficient restructuring through IP rights transfer to Switzerland, resulting in a
Delivers ARR growth of
Subscription Revenue growth of
Achieves GAAP Operating Margin of
"Our third quarter results exceeded guidance across all key operating metrics," said Rick McConnell, Chief Executive Officer of Dynatrace. "The explosion of data, along with its complexity, combined with the unprecedented requirements for speed and scale, are making modern digital ecosystems unmanageable. In a world where generative and now agentic AI workloads are ramping, the observability market has become mission critical for organizations to ensure high business resiliency and deliver exceptional customer experiences. Our leading AI-powered observability platform, combined with our ongoing innovation, provide us with a powerful advantage to capture the opportunity ahead."
Third Quarter Fiscal 2025 Financial and Other Recent Business Highlights:
All growth rates are compared to the third quarter of fiscal 2024, unless otherwise noted.
Financial Highlights:
-
ARR of
$1,647 million 16% , or18% on a constant currency basis -
Total Revenue of
$436 million 19% , or20% on a constant currency basis -
Subscription Revenue of
$417 million 20% , or21% on a constant currency basis -
GAAP Income from Operations of
$47 million $131 million -
GAAP EPS of
$1.19 $0.37
Business Highlights:
-
Industry recognition: Dynatrace received the following recognitions by third-party industry analysts:
- Named a Leader in both the Cloud-Native Observability and Security Quadrants in the 2024 ISG Provider Lens, Multi Public Cloud Solutions Report, for competitive strength and portfolio attractiveness.
- Recognized as a Leader in the inaugural 2024 GigaOm Radar Report for Kubernetes Observability.
- Partner evolution: Dynatrace was named the 2024 AWS EMEA technology partner of the year for helping customers innovate faster, reduce costs and be more agile through cloud migration and modernization programs. In addition, Dynatrace became a member of the Microsoft Intelligent Security Association (MISA) based on our powerful integration with Microsoft’s SIEM solution, Microsoft Sentinel.
- Sustainability progress: We published our second annual Sustainability Report, which discusses our progress on environmental, social, and governance topics that are important to Dynatrace stakeholders. The report is posted on our website at www.dynatrace.com/company/sustainability/ and highlights third party limited assurance/verification of our fiscal year 2024 greenhouse gas emissions data, our new Global Inclusion Council, AI-related governance developments, and more.
Share Repurchase Program
-
During the third quarter, Dynatrace spent
$40 million $54.64 $500 million $130 million $48.89
| ________________________________ |
1 During the third quarter, Dynatrace completed an intra-entity asset transfer of the global economic rights of intellectual property (IP) from a wholly-owned |
Third Quarter 2025 Financial Highlights |
|||||||
(Unaudited – In thousands, except per share data) |
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|
Three Months Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Key Operating Metric: |
|
|
|
||||
Annual recurring revenue (ARR) |
$ |
1,647,412 |
|
|
$ |
1,425,284 |
|
Year-over-Year Increase |
|
16 |
% |
|
|
||
Year-over-Year Increase - constant currency (*) |
|
18 |
% |
|
|
||
|
|
|
|
||||
Revenue: |
|
|
|
||||
Total revenue |
$ |
436,169 |
|
|
$ |
365,096 |
|
Year-over-Year Increase |
|
19 |
% |
|
|
||
Year-over-Year Increase - constant currency (*) |
|
20 |
% |
|
|
||
|
|
|
|
||||
Subscription revenue |
$ |
417,207 |
|
|
$ |
348,294 |
|
Year-over-Year Increase |
|
20 |
% |
|
|
||
Year-over-Year Increase - constant currency (*) |
|
21 |
% |
|
|
||
|
|
|
|
||||
GAAP Financial Measures: |
|
|
|
||||
GAAP income from operations |
$ |
47,464 |
|
|
$ |
35,720 |
|
GAAP operating margin |
|
11 |
% |
|
|
10 |
% |
|
|
|
|
||||
GAAP net income (**) |
$ |
361,752 |
|
|
$ |
42,691 |
|
|
|
|
|
||||
GAAP net income per share - diluted (**) |
$ |
1.19 |
|
|
$ |
0.14 |
|
|
|
|
|
||||
GAAP shares outstanding - diluted |
|
303,467 |
|
|
|
299,246 |
|
|
|
|
|
||||
Net cash provided by operating activities |
$ |
42,238 |
|
|
$ |
75,657 |
|
|
|
|
|
||||
Non-GAAP Financial Measures (*): |
|
|
|
||||
Non-GAAP income from operations |
$ |
130,734 |
|
|
$ |
104,636 |
|
Non-GAAP operating margin |
|
30 |
% |
|
|
29 |
% |
|
|
|
|
||||
Non-GAAP net income |
$ |
111,679 |
|
|
$ |
96,184 |
|
|
|
|
|
||||
Non-GAAP net income per share - diluted |
$ |
0.37 |
|
|
$ |
0.32 |
|
|
|
|
|
||||
Non-GAAP shares outstanding - diluted |
|
303,467 |
|
|
|
299,246 |
|
|
|
|
|
||||
Free cash flow |
$ |
37,569 |
|
|
$ |
67,357 |
|
* For additional information, please see the "Non-GAAP Financial Measures" and "Definitions - Non-GAAP and Other Metrics" sections of this press release. |
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** For additional information, please see note 1 above. |
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Financial Outlook
Based on information available as of January 30, 2025, Dynatrace is issuing guidance for the fourth quarter and increasing its previous guidance for full year fiscal 2025 in the table below.
This guidance reflects foreign exchange rates as of December 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 fourth quarter and full year of fiscal 2024.
(In millions, except per share data) |
Q4 Fiscal 2025 Guidance |
|
|||
Total revenue |
|
|
|||
As reported |
|
|
|||
Constant currency |
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|
|||
Subscription revenue |
|
|
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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 |
304 - 305 |
|
|||
(In millions, except per share data) |
Current Guidance Fiscal 2025 |
|
Prior Guidance Fiscal 2025* |
|
Guidance Change at Midpoint** |
ARR |
|
|
|
|
|
As reported |
|
|
|
|
(100) bps |
Constant currency |
|
|
|
|
75 bps |
Total revenue |
|
|
|
|
|
As reported |
|
|
|
|
150 bps |
Constant currency |
|
|
|
|
150 bps |
Subscription revenue |
|
|
|
|
|
As reported |
|
|
|
|
100 bps |
Constant currency |
|
|
|
|
250 bps |
Non-GAAP income from operations |
|
|
|
|
|
Non-GAAP operating margin |
|
|
|
|
50 bps |
Non-GAAP net income |
|
|
|
|
|
Non-GAAP net income per diluted share |
|
|
|
|
|
Diluted weighted average shares outstanding |
303 - 304 |
|
303 - 305 |
|
(1) |
Free cash flow |
|
|
|
|
|
Free cash flow margin |
|
|
|
|
125 bps |
*Prior guidance was issued on November 7, 2024. |
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**Guidance change at midpoint rounded to the nearest million. |
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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, January 30, 2025. 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 April 30, 2025, 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 Davis® hypermodal AI 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 benefits that we believe organizations receive from using Dynatrace and our financial and business outlook, including our financial guidance for the fourth 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 Reports 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. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(Unaudited – In thousands, except per share data) |
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|
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
Revenue: |
|
|
|
|
|
|
|||||||||
Subscription |
$ |
417,207 |
|
|
$ |
348,294 |
|
$ |
1,198,593 |
|
|
$ |
999,245 |
|
|
Service |
|
18,962 |
|
|
|
16,802 |
|
|
54,925 |
|
|
|
50,437 |
|
|
Total revenue |
|
436,169 |
|
|
|
365,096 |
|
|
1,253,518 |
|
|
|
1,049,682 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|||||||||
Cost of subscription |
|
60,666 |
|
|
|
46,888 |
|
|
170,034 |
|
|
|
134,584 |
|
|
Cost of service |
|
18,139 |
|
|
|
16,744 |
|
|
52,536 |
|
|
|
47,961 |
|
|
Amortization of acquired technology |
|
3,756 |
|
|
|
4,237 |
|
|
12,528 |
|
|
|
12,035 |
|
|
Total cost of revenue |
|
82,561 |
|
|
|
67,869 |
|
|
235,098 |
|
|
|
194,580 |
|
|
Gross profit |
|
353,608 |
|
|
|
297,227 |
|
|
1,018,420 |
|
|
|
855,102 |
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses: |
|
|
|
|
|
|
|||||||||
Research and development |
|
98,343 |
|
|
|
80,102 |
|
|
281,287 |
|
|
|
220,468 |
|
|
Sales and marketing |
|
154,472 |
|
|
|
132,723 |
|
|
443,802 |
|
|
|
385,445 |
|
|
General and administrative |
|
49,354 |
|
|
|
43,231 |
|
|
143,285 |
|
|
|
127,074 |
|
|
Amortization of other intangibles |
|
3,975 |
|
|
|
5,451 |
|
|
13,527 |
|
|
|
16,838 |
|
|
Total operating expenses |
|
306,144 |
|
|
|
261,507 |
|
|
881,901 |
|
|
|
749,825 |
|
|
Income from operations |
|
47,464 |
|
|
|
35,720 |
|
|
136,519 |
|
|
|
105,277 |
|
|
Interest income, net |
|
11,726 |
|
|
|
10,605 |
|
|
37,351 |
|
|
|
26,260 |
|
|
Other expense, net |
|
(2,072 |
) |
|
|
(3,901 |
) |
|
(6,145 |
) |
|
|
(6,724 |
) |
|
Income before income taxes |
|
57,118 |
|
|
|
42,424 |
|
|
167,725 |
|
|
|
124,813 |
|
|
Income tax benefit (expense) |
|
304,634 |
|
|
|
267 |
|
|
276,655 |
|
|
|
(8,125 |
) |
|
Net income |
$ |
361,752 |
|
|
$ |
42,691 |
|
$ |
444,380 |
|
|
$ |
116,688 |
|
|
Net income per share: |
|
|
|
|
|
|
|||||||||
Basic |
$ |
1.21 |
|
|
$ |
0.14 |
|
$ |
1.49 |
|
|
$ |
0.40 |
|
|
Diluted |
$ |
1.19 |
|
|
$ |
0.14 |
|
$ |
1.47 |
|
|
$ |
0.39 |
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|||||||||
Basic |
|
298,646 |
|
|
|
294,869 |
|
|
298,049 |
|
|
|
293,295 |
|
|
Diluted |
|
303,467 |
|
|
|
299,246 |
|
|
302,815 |
|
|
|
298,335 |
|
|
UNAUDITED SHARE-BASED COMPENSATION |
|||||||||||||||
|
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||
|
|
2024 |
|
|
2023 |
|
2024 |
|
|
2023 |
|||||
Cost of revenue |
$ |
9,821 |
|
$ |
6,975 |
$ |
27,265 |
|
$ |
19,660 |
|||||
Research and development |
|
26,582 |
|
|
18,678 |
|
74,769 |
|
|
50,119 |
|||||
Sales and marketing |
|
20,709 |
|
|
15,947 |
|
57,481 |
|
|
48,823 |
|||||
General and administrative |
|
15,027 |
|
|
13,222 |
|
41,984 |
|
|
34,696 |
|||||
Total share-based compensation |
$ |
72,139 |
|
$ |
54,822 |
$ |
201,499 |
|
$ |
153,298 |
|||||
DYNATRACE, INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands, except share and per share data) |
|||||||
|
December 31, 2024 |
|
March 31, 2024 |
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
907,482 |
|
|
$ |
778,983 |
|
Short-term investments |
|
100,225 |
|
|
|
57,891 |
|
Accounts receivable, net |
|
391,578 |
|
|
|
602,739 |
|
Deferred commissions, current |
|
102,811 |
|
|
|
98,935 |
|
Prepaid expenses and other current assets |
|
73,130 |
|
|
|
66,749 |
|
Total current assets |
|
1,575,226 |
|
|
|
1,605,297 |
|
Long-term investments |
|
46,260 |
|
|
|
46,350 |
|
Property and equipment, net |
|
49,426 |
|
|
|
53,325 |
|
Operating lease right-of-use assets, net |
|
66,666 |
|
|
|
61,390 |
|
Goodwill |
|
1,335,386 |
|
|
|
1,335,494 |
|
Intangible assets, net |
|
23,351 |
|
|
|
50,995 |
|
Deferred tax assets, net |
|
514,838 |
|
|
|
138,836 |
|
Deferred commissions, non-current |
|
88,237 |
|
|
|
93,310 |
|
Other assets |
|
35,715 |
|
|
|
24,782 |
|
Total assets |
$ |
3,735,105 |
|
|
$ |
3,409,779 |
|
|
|
|
|
||||
Liabilities and shareholders' equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
8,552 |
|
|
$ |
21,410 |
|
Accrued expenses, current |
|
213,130 |
|
|
|
233,675 |
|
Deferred revenue, current |
|
812,892 |
|
|
|
987,953 |
|
Operating lease liabilities, current |
|
13,995 |
|
|
|
15,513 |
|
Total current liabilities |
|
1,048,569 |
|
|
|
1,258,551 |
|
Deferred revenue, non-current |
|
54,940 |
|
|
|
62,308 |
|
Accrued expenses, non-current |
|
16,533 |
|
|
|
18,404 |
|
Operating lease liabilities, non-current |
|
61,216 |
|
|
|
54,013 |
|
Deferred tax liabilities |
|
563 |
|
|
|
1,013 |
|
Total liabilities |
|
1,181,821 |
|
|
|
1,394,289 |
|
|
|
|
|
||||
Shareholders' equity: |
|
|
|
||||
Common shares, |
|
299 |
|
|
|
297 |
|
Additional paid-in capital |
|
2,340,470 |
|
|
|
2,249,349 |
|
Retained earnings (accumulated deficit) |
|
245,623 |
|
|
|
(198,757 |
) |
Accumulated other comprehensive loss |
|
(33,108 |
) |
|
|
(35,399 |
) |
Total shareholders' equity |
|
2,553,284 |
|
|
|
2,015,490 |
|
Total liabilities and shareholders' equity |
$ |
3,735,105 |
|
|
$ |
3,409,779 |
|
DYNATRACE, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited – In thousands) |
|||||||
|
Nine Months Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
444,380 |
|
|
$ |
116,688 |
|
Adjustments to reconcile net income to cash provided by operations: |
|
|
|
||||
Depreciation |
|
13,851 |
|
|
|
11,781 |
|
Amortization |
|
27,603 |
|
|
|
29,067 |
|
Share-based compensation |
|
201,499 |
|
|
|
153,298 |
|
Deferred income taxes |
|
(378,795 |
) |
|
|
(49,579 |
) |
Other |
|
4,135 |
|
|
|
7,016 |
|
Net change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
204,251 |
|
|
|
83,444 |
|
Deferred commissions |
|
(3,035 |
) |
|
|
874 |
|
Prepaid expenses and other assets |
|
(21,573 |
) |
|
|
(27,437 |
) |
Accounts payable and accrued expenses |
|
(27,608 |
) |
|
|
(24,022 |
) |
Operating leases, net |
|
434 |
|
|
|
1,253 |
|
Deferred revenue |
|
(168,513 |
) |
|
|
(55,946 |
) |
Net cash provided by operating activities |
|
296,629 |
|
|
|
246,437 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(11,540 |
) |
|
|
(16,662 |
) |
Capitalized software additions |
|
— |
|
|
|
(4,655 |
) |
Acquisition of a business, net of cash acquired |
|
(100 |
) |
|
|
(32,297 |
) |
Purchases of investments |
|
(107,989 |
) |
|
|
— |
|
Proceeds from sales and maturities of investments |
|
68,145 |
|
|
|
— |
|
Net cash used in investing activities |
|
(51,484 |
) |
|
|
(53,614 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Payments of deferred consideration related to capitalized software additions |
|
(1,656 |
) |
|
|
— |
|
Proceeds from employee stock purchase plan |
|
21,159 |
|
|
|
19,472 |
|
Proceeds from exercise of stock options |
|
14,903 |
|
|
|
24,205 |
|
Repurchases of common stock |
|
(130,100 |
) |
|
|
— |
|
Taxes paid related to net share settlement of equity awards |
|
(16,338 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(112,032 |
) |
|
|
43,677 |
|
|
|
|
|
||||
Effect of exchange rates on cash and cash equivalents |
|
(4,614 |
) |
|
|
(9,199 |
) |
|
|
|
|
||||
Net increase in cash and cash equivalents |
|
128,499 |
|
|
|
227,301 |
|
|
|
|
|
||||
Cash and cash equivalents, beginning of period |
|
778,983 |
|
|
|
555,348 |
|
Cash and cash equivalents, end of period |
$ |
907,482 |
|
|
$ |
782,649 |
|
DYNATRACE, INC. |
|||||||||||||||||||||||
GAAP to Non-GAAP Reconciliations |
|||||||||||||||||||||||
(Unaudited - In thousands, except percentages) |
|||||||||||||||||||||||
|
Three Months Ended December 31, 2024 |
||||||||||||||||||||||
|
GAAP |
|
Share-based
|
|
Employer
|
|
Amortization
|
|
Transaction,
|
|
Non-GAAP |
||||||||||||
Non-GAAP income from operations: |
|||||||||||||||||||||||
Cost of revenue |
$ |
82,561 |
|
|
$ |
(9,821 |
) |
|
$ |
(469 |
) |
|
$ |
(3,756 |
) |
|
$ |
— |
|
|
$ |
68,515 |
|
Gross profit |
|
353,608 |
|
|
|
9,821 |
|
|
|
469 |
|
|
|
3,756 |
|
|
|
— |
|
|
|
367,654 |
|
Gross margin |
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
84 |
% |
||||||||
Research and development |
|
98,343 |
|
|
|
(26,582 |
) |
|
|
(1,770 |
) |
|
|
— |
|
|
|
— |
|
|
|
69,991 |
|
Sales and marketing |
|
154,472 |
|
|
|
(20,709 |
) |
|
|
(756 |
) |
|
|
— |
|
|
|
(106 |
) |
|
|
132,901 |
|
General and administrative |
|
49,354 |
|
|
|
(15,027 |
) |
|
|
(299 |
) |
|
|
— |
|
|
|
|
|
34,028 |
|
||
Amortization of other intangibles |
|
3,975 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,975 |
) |
|
|
— |
|
|
|
— |
|
Income from operations |
|
47,464 |
|
|
|
72,139 |
|
|
|
3,294 |
|
|
|
7,731 |
|
|
|
106 |
|
|
|
130,734 |
|
Operating margin |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
30 |
% |
||||||||
|
Three Months Ended December 31, 2023 |
||||||||||||||||||||||
|
GAAP |
|
Share-based
|
|
Employer
|
|
Amortization
|
|
Transaction,
|
|
Non-GAAP |
||||||||||||
Non-GAAP income from operations: |
|||||||||||||||||||||||
Cost of revenue |
$ |
67,869 |
|
|
$ |
(6,975 |
) |
|
$ |
(284 |
) |
|
$ |
(4,237 |
) |
|
$ |
— |
|
|
$ |
56,373 |
|
Gross profit |
|
297,227 |
|
|
|
6,975 |
|
|
|
284 |
|
|
|
4,237 |
|
|
|
— |
|
|
|
308,723 |
|
Gross margin |
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
85 |
% |
||||||||
Research and development |
|
80,102 |
|
|
|
(18,678 |
) |
|
|
(1,196 |
) |
|
|
— |
|
|
|
— |
|
|
|
60,228 |
|
Sales and marketing |
|
132,723 |
|
|
|
(15,947 |
) |
|
|
(1,029 |
) |
|
|
— |
|
|
|
201 |
|
|
|
115,948 |
|
General and administrative |
|
43,231 |
|
|
|
(13,222 |
) |
|
|
(360 |
) |
|
|
— |
|
|
|
(1,738 |
) |
|
|
27,911 |
|
Amortization of other intangibles |
|
5,451 |
|
|
|
— |
|
|
|
— |
|
|
|
(5,451 |
) |
|
|
— |
|
|
|
— |
|
Income from operations |
$ |
35,720 |
|
|
$ |
54,822 |
|
|
$ |
2,869 |
|
|
$ |
9,688 |
|
|
$ |
1,537 |
|
|
$ |
104,636 |
|
Operating margin |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
29 |
% |
||||||||
DYNATRACE, INC. |
|||||||
GAAP to Non-GAAP Reconciliations |
|||||||
(Unaudited - In thousands, except per share data) |
|||||||
|
Three Months Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Non-GAAP net income: |
|
|
|
||||
Net income |
$ |
361,752 |
|
|
$ |
42,691 |
|
Income tax benefit |
|
(304,634 |
) |
|
|
(267 |
) |
Non-GAAP effective cash tax |
|
(30,588 |
) |
|
|
(18,516 |
) |
Interest income, net |
|
(11,726 |
) |
|
|
(10,605 |
) |
Cash received from interest, net |
|
11,533 |
|
|
|
10,064 |
|
Share-based compensation |
|
72,139 |
|
|
|
54,822 |
|
Employer payroll taxes on employee stock transactions |
|
3,294 |
|
|
|
2,869 |
|
Amortization of intangibles |
|
7,731 |
|
|
|
9,688 |
|
Transaction, restructuring, and other |
|
106 |
|
|
|
1,537 |
|
Loss on currency translation |
|
2,072 |
|
|
|
3,901 |
|
Non-GAAP net income |
$ |
111,679 |
|
|
$ |
96,184 |
|
|
|
|
|
||||
Share count: |
|
|
|
||||
Weighted-average shares outstanding - basic |
|
298,646 |
|
|
|
294,869 |
|
Weighted-average shares outstanding - diluted |
|
303,467 |
|
|
|
299,246 |
|
|
|
|
|
||||
Shares used in non-GAAP per share calculations: |
|
|
|
||||
Weighted-average shares outstanding - basic |
|
298,646 |
|
|
|
294,869 |
|
Weighted-average shares outstanding - diluted |
|
303,467 |
|
|
|
299,246 |
|
|
|
|
|
||||
Non-GAAP net income per share: |
|
|
|
||||
Net income per share - basic |
$ |
1.21 |
|
|
$ |
0.14 |
|
Net income per share - diluted |
$ |
1.19 |
|
|
$ |
0.14 |
|
Non-GAAP net income per share - basic |
$ |
0.37 |
|
|
$ |
0.33 |
|
Non-GAAP net income per share - diluted |
$ |
0.37 |
|
|
$ |
0.32 |
|
|
Three Months Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Free cash flow: |
|
|
|
||||
Net cash provided by operating activities |
$ |
42,238 |
|
|
$ |
75,657 |
|
Purchase of property and equipment |
|
(4,669 |
) |
|
|
(3,645 |
) |
Capitalized software additions |
|
— |
|
|
|
(4,655 |
) |
Free cash flow |
$ |
37,569 |
|
|
$ |
67,357 |
|
DYNATRACE, INC. |
|||||||||||||||||||||||
GAAP to Non-GAAP Reconciliations |
|||||||||||||||||||||||
(Unaudited - In thousands, except percentages) |
|||||||||||||||||||||||
|
Nine Months Ended December 31, 2024 |
||||||||||||||||||||||
|
GAAP |
|
Share-based
|
|
Employer
|
|
Amortization
|
|
Transaction,
|
|
Non-GAAP |
||||||||||||
Non-GAAP income from operations: |
|||||||||||||||||||||||
Cost of revenue |
$ |
235,098 |
|
|
$ |
(27,265 |
) |
|
$ |
(1,786 |
) |
|
$ |
(12,528 |
) |
|
$ |
— |
|
|
$ |
193,519 |
|
Gross profit |
|
1,018,420 |
|
|
|
27,265 |
|
|
|
1,786 |
|
|
|
12,528 |
|
|
|
— |
|
|
|
1,059,999 |
|
Gross margin |
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
85 |
% |
||||||||
Research and development |
|
281,287 |
|
|
|
(74,769 |
) |
|
|
(5,484 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
201,031 |
|
Sales and marketing |
|
443,802 |
|
|
|
(57,481 |
) |
|
|
(2,989 |
) |
|
|
— |
|
|
|
(106 |
) |
|
|
383,226 |
|
General and administrative |
|
143,285 |
|
|
|
(41,984 |
) |
|
|
(1,215 |
) |
|
|
— |
|
|
|
3 |
|
|
|
100,089 |
|
Amortization of other intangibles |
|
13,527 |
|
|
|
— |
|
|
|
— |
|
|
|
(13,527 |
) |
|
|
— |
|
|
|
— |
|
Income from operations |
$ |
136,519 |
|
|
$ |
201,499 |
|
|
$ |
11,474 |
|
|
$ |
26,055 |
|
|
$ |
106 |
|
|
$ |
375,653 |
|
Operating margin |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
30 |
% |
||||||||
|
Nine Months Ended December 31, 2023 |
||||||||||||||||||||||
|
GAAP |
|
Share-based
|
|
Employer
|
|
Amortization
|
|
Transaction,
|
|
Non-GAAP |
||||||||||||
Non-GAAP income from operations: |
|||||||||||||||||||||||
Cost of revenue |
$ |
194,580 |
|
|
$ |
(19,660 |
) |
|
$ |
(1,516 |
) |
|
$ |
(12,035 |
) |
|
$ |
— |
|
|
$ |
161,369 |
|
Gross profit |
|
855,102 |
|
|
|
19,660 |
|
|
|
1,516 |
|
|
|
12,035 |
|
|
|
— |
|
|
|
888,313 |
|
Gross margin |
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
85 |
% |
||||||||
Research and development |
|
220,468 |
|
|
|
(50,119 |
) |
|
|
(4,391 |
) |
|
|
— |
|
|
|
— |
|
|
|
165,958 |
|
Sales and marketing |
|
385,445 |
|
|
|
(48,823 |
) |
|
|
(3,341 |
) |
|
|
— |
|
|
|
399 |
|
|
|
333,680 |
|
General and administrative |
|
127,074 |
|
|
|
(34,696 |
) |
|
|
(1,125 |
) |
|
|
— |
|
|
|
(5,724 |
) |
|
|
85,529 |
|
Amortization of other intangibles |
|
16,838 |
|
|
|
— |
|
|
|
— |
|
|
|
(16,838 |
) |
|
|
— |
|
|
|
— |
|
Income from operations |
$ |
105,277 |
|
|
$ |
153,298 |
|
|
$ |
10,373 |
|
|
$ |
28,873 |
|
|
$ |
5,325 |
|
|
$ |
303,146 |
|
Operating margin |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
29 |
% |
||||||||
DYNATRACE, INC. |
|||||||
GAAP to Non-GAAP Reconciliations |
|||||||
(Unaudited - In thousands, except per share data) |
|||||||
|
Nine Months Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Non-GAAP net income: |
|
|
|
||||
Net income |
$ |
444,380 |
|
|
$ |
116,688 |
|
Income tax (benefit) expense |
|
(276,655 |
) |
|
|
8,125 |
|
Non-GAAP effective cash tax |
|
(88,538 |
) |
|
|
(58,986 |
) |
Interest income, net |
|
(37,351 |
) |
|
|
(26,260 |
) |
Cash received from interest, net |
|
36,151 |
|
|
|
24,556 |
|
Share-based compensation |
|
201,499 |
|
|
|
153,298 |
|
Employer payroll taxes on employee stock transactions |
|
11,474 |
|
|
|
10,373 |
|
Amortization of intangibles |
|
26,055 |
|
|
|
28,873 |
|
Transaction, restructuring, and other |
|
106 |
|
|
|
5,325 |
|
Loss on currency translation |
|
6,145 |
|
|
|
6,724 |
|
Non-GAAP net income |
$ |
323,266 |
|
|
$ |
268,716 |
|
|
|
|
|
||||
Share count: |
|
|
|
||||
Weighted-average shares outstanding - basic |
|
298,049 |
|
|
|
293,295 |
|
Weighted-average shares outstanding - diluted |
|
302,815 |
|
|
|
298,335 |
|
|
|
|
|
||||
Shares used in non-GAAP per share calculations: |
|
|
|
||||
Weighted-average shares outstanding - basic |
|
298,049 |
|
|
|
293,295 |
|
Weighted-average shares outstanding - diluted |
|
302,815 |
|
|
|
298,335 |
|
|
|
|
|
||||
Non-GAAP net income per share: |
|
|
|
||||
Net income per share - basic |
$ |
1.49 |
|
|
$ |
0.40 |
|
Net income per share - diluted |
$ |
1.47 |
|
|
$ |
0.39 |
|
Non-GAAP net income per share - basic |
$ |
1.08 |
|
|
$ |
0.92 |
|
Non-GAAP net income per share - diluted |
$ |
1.07 |
|
|
$ |
0.90 |
|
|
Nine Months Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Free cash flow: |
|
|
|
||||
Net cash provided by operating activities |
$ |
296,629 |
|
|
$ |
246,437 |
|
Purchase of property and equipment |
|
(11,540 |
) |
|
|
(16,662 |
) |
Capitalized software additions |
|
— |
|
|
|
(4,655 |
) |
Free cash flow |
$ |
285,089 |
|
|
$ |
225,120 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130713720/en/
Investors:
Noelle Faris
VP, Investor Relations
Noelle.Faris@dynatrace.com
Media Relations:
Kristy Campbell
VP, Brand and Communications
Kristy.Campbell@dynatrace.com
Source: Dynatrace
FAQ
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