Exceeds high end of guidance across all
metrics
Delivers ARR growth of 20% year-over-year on
a constant currency basis
Achieves GAAP Operating Margin of 11% and
Non-GAAP Operating Margin of 29%
Dynatrace (NYSE: DT), the leader in end-to-end observability and
security, today announced financial results for the first quarter
of fiscal 2025 ended June 30, 2024.
"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, an increase of 19%, or 20% on a constant
currency basis
- Total Revenue of $399 million, an increase of 20%, or 21% on a
constant currency basis
- Subscription Revenue of $382 million, an increase of 21% on
both an as reported and on a constant currency basis
- GAAP Income from Operations of $42 million and Non-GAAP Income
from Operations of $114 million
- GAAP EPS of $0.13 and Non-GAAP EPS of $0.33, both on a dilutive
basis
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 under its $500 million
share repurchase program.
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 $12 million on ARR and approximately $10 million on
revenue for fiscal 2025. Given recent strengthening in the U.S.
dollar, this represents an incremental headwind of approximately $2
million to ARR and no change to revenue impact for the full year
when compared to our prior guidance.
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
$404 - $407
As reported
15% - 16%
Constant currency
16% - 17%
Subscription revenue
$388 - $390
As reported
16% - 17%
Constant currency
17% - 18%
Non-GAAP income from operations
$113 - $116
Non-GAAP operating margin
28% - 28.5%
Non-GAAP net income
$96 - $99
Non-GAAP net income per diluted share
$0.32 - $0.33
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
$1,720 - $1,735
$1,720 - $1,735
—
As reported
14% - 15%
14% - 15%
—
Constant currency
15% - 16%
15% - 16%
—
Total revenue
$1,644 - $1,658
$1,644 - $1,658
—
As reported
15% - 16%
15% - 16%
—
Constant currency
16% - 17%
16% - 17%
—
Subscription revenue
$1,571 - $1,585
$1,571 - $1,585
—
As reported
16% - 17%
16% - 17%
—
Constant currency
16% - 17%
16% - 17%
—
Non-GAAP income from operations
$459 - $467
$459 - $467
—
Non-GAAP operating margin
28%
28%
—
Non-GAAP net income
$383 - $392
$383 - $392
—
Non-GAAP net income per diluted share
$1.26 - $1.29
$1.26 - $1.29
—
Diluted weighted average shares
outstanding
303 - 305
303 - 305
—
Free cash flow
$386 - $398
$386 - $398
—
Free cash flow margin
23.5% - 24%
23.5% - 24%
—
*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 U.S. and Canada, dial (866) 405-1247, or
internationally, dial (201) 689-8045 with conference ID# 13747991.
The call will also be available live via webcast on the company’s
website, ir.dynatrace.com.
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 U.S. or Canada, or for international callers by dialing
(201) 612-7415 and entering conference ID# 13747991. In addition,
an archived webcast will be available at ir.dynatrace.com.
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 United States dollars
are converted into United States dollars using the average exchange
rates from the comparative period rather than the actual exchange
rates in effect during the respective periods. All growth
comparisons relate to the corresponding period in the last fiscal
year.
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, $0.001 par value,
600,000,000 shares authorized, 298,215,657 and 296,962,547 shares
issued and outstanding at June 30, 2024 and March 31, 2024,
respectively
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
Dynatrace (NYSE:DT)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Dynatrace (NYSE:DT)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
