- ARR of $864 million, up 35% year-over-year, or 34% on a constant currency basis
- Subscription revenue of $213 million, up 35% year-over-year, or 33% on a constant currency basis
- GAAP EPS of $0.08 and non-GAAP EPS of $0.18, on a dilutive basis
WALTHAM, Mass.–(BUSINESS WIRE)–Software intelligence company Dynatrace (NYSE: DT) today released financial results for the second quarter of its fiscal 2022 ended September 30, 2021.
“I am extremely proud of our team’s performance, once again exceeding guidance across all our key operating metrics. ARR, our leading indicator for growth, was up 35% year-over-year, and Subscription Revenue was up 35% year-over-year,” said John Van Siclen, Dynatrace’s CEO. “We continue to see robust investment in digital transformation across all industries and all geographies. And our unique approach unifying AIOps capabilities with observability and application security continues to provide us with a powerful value advantage.”
Second Quarter Fiscal 2022 and Other Recent Business Highlights:
All growth rates are compared to the second quarter of fiscal 2021 unless otherwise noted.
Financial Highlights:
- Total ARR of $864 million, an increase of 35%, or 34% on a constant currency basis
- Total Revenue of $226 million, an increase of 34%, or 33% on a constant currency basis
- Subscription revenue of $213 million, an increase of 35%, or 33% on a constant currency basis, and representing 94% of total revenue
- GAAP Operating Income of $21 million and non-GAAP Operating Income of $61 million
- GAAP EPS of $0.08 and non-GAAP EPS of $0.18, on a dilutive basis
Business Highlights:
- Deepened strategic partnerships with Microsoft and Google, making Dynatrace® available natively across all three hyperscale platforms – Microsoft Azure, Google Cloud Platform, and Amazon Web Services.
- Broadened Dynatrace® Application Security coverage to include applications running on .NET, in addition to Kubernetes, Java, and Node.js, allowing more organizations to use Dynatrace to gain precise answers about the source, nature, and severity of vulnerabilities in their production and pre-production environments.
- Completed acquisition of SpectX, a high-speed parsing and query analytics company, to help accelerate the convergence of observability and security.
- Continued recognition for superior product differentiation and value: ISG named Dynatrace the leader in cloud-native observability in the 2021 Provider Lens, Container Services and Solutions Report; GigaOm named Dynatrace “Leader and Outperformer” in the 2021 Radar for AIOps Solutions; Gartner rated Dynatrace highest in the 2021 Peer Insights Customers’ Choice for Application Performance Monitoring[1].
[1] Gartner Peer Insights ‘Voice of the Customer’: Application Performance Monitoring, 9 September 2021. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
Gartner Peer Insights Customers’ Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates.
|
Second Quarter 2022 Financial Highlights (Unaudited – in thousands, except per share data) |
|||||||
|
|
Three Months Ended September 30, |
||||||
|
|
2021 |
|
2020 |
||||
|
Key Operating Metric: |
|
|
|
||||
|
Annualized recurring revenue |
$ |
863,863 |
|
|
$ |
638,063 |
|
|
Year-over-Year Increase |
35 |
% |
|
|
|||
|
|
|
|
|
||||
|
Annualized recurring revenue – constant currency (*) |
$ |
856,146 |
|
|
$ |
638,063 |
|
|
Year-over-Year Increase |
34 |
% |
|
|
|||
|
|
|
|
|
||||
|
Revenue: |
|
|
|
||||
|
Total revenue |
$ |
226,354 |
|
|
$ |
168,586 |
|
|
Year-over-Year Increase |
34 |
% |
|
|
|||
|
|
|
|
|
||||
|
Total revenue – constant currency (*) |
$ |
223,576 |
|
|
$ |
168,586 |
|
|
Year-over-Year Increase |
33 |
% |
|
|
|||
|
|
|
|
|
||||
|
Subscription revenue |
$ |
212,601 |
|
|
$ |
157,673 |
|
|
Year-over-Year Increase |
35 |
% |
|
|
|||
|
|
|
|
|
||||
|
Subscription revenue – constant currency (*) |
$ |
209,995 |
|
|
$ |
157,673 |
|
|
Year-over-Year Increase |
33 |
% |
|
|
|||
|
|
|
|
|
||||
|
Non-GAAP Financial Measures: |
|
|
|
||||
|
Non-GAAP operating income (*) |
$ |
61,468 |
|
|
$ |
53,259 |
|
|
Non-GAAP operating margin (*) |
27 |
% |
|
32 |
% |
||
|
|
|
|
|
||||
|
Non-GAAP net income (*) |
$ |
52,165 |
|
|
$ |
46,313 |
|
|
|
|
|
|
||||
|
Non-GAAP net income per share – diluted |
$ |
0.18 |
|
|
$ |
0.16 |
|
|
|
|
|
|
||||
|
Non-GAAP shares outstanding – diluted |
291,177 |
|
|
286,252 |
|
||
|
|
|
|
|
||||
|
Unlevered Free Cash Flow (*) |
$ |
11,682 |
|
|
$ |
33,004 |
|
* Use of Non-GAAP Financial Measures
In our earnings press releases, conference calls, slide presentations, and webcasts, we may use or discuss non-GAAP financial measures, as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investors section of our website at https://ir.dynatrace.com.
Financial Outlook
Based on information available, as of October 27, 2021, Dynatrace is issuing guidance for the third quarter and raising guidance for full year fiscal 2022 as follows:
Third Quarter of Fiscal Year 2022:
- Total revenue is expected to be in the range of $233 to $235 million, 27% to 28% growth as reported, or 28% to 29% on a constant currency basis
- Subscription revenue is expected to be in the range of $219.5 to $221 million, 29% to 30% growth as reported, or 30% to 31% on a constant currency basis
- Non-GAAP operating income is expected to be in the range of $54 to $56 million
- Non-GAAP net income is expected to be in the range of $45.5 to $47.5 million
- Non-GAAP net income per diluted share is expected to be $0.16, based on a range of 292 to 293 million diluted weighted-average shares outstanding
Full Year Fiscal 2022:
- Total ARR is expected to be in the range of $986 to $996 million, 27% to 29% growth as reported, or 29% to 30% growth on a constant currency basis, an increase of 250 basis points from prior midpoint guidance
- Total revenue is expected to be in the range of $913 to $919 million, 30% to 31% growth as reported, 29% to 30% growth on a constant currency basis, an increase of 250 basis points from prior midpoint guidance
- Subscription revenue is expected to be in the range of $857.5 to $862.5 million, 31% to 32% growth as reported, 30% to 31% growth on a constant currency basis, an increase of 250 basis points from prior midpoint guidance
- Non-GAAP operating income is expected to be in the range of $219 to $226 million
- Non-GAAP net income is expected to be in the range of $185 to $191 million
- Non-GAAP net income per diluted share is expected to be in the range of $0.63 to $0.65, based on a range of 292 to 293 million diluted weighted-average shares outstanding
- Total unlevered free cash flow is expected to be in the range of $263 to $275 million, or 29% to 30% of revenue
Our guidance is based on foreign exchange rates as of September 30, 2021.
Reconciliation of non-GAAP operating income, non-GAAP net income, non-GAAP net income per share and unlevered free cash flow guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis 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.
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, October 27, 2021. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with conference ID # 13723986. 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 November 10, 2021, by dialing (877) 660-6853 from the U.S. or Canada, or for international callers by dialing (201) 612-7415 and entering conference ID # 13723986. In addition, an archived webcast will be available at ir.dynatrace.com.
The company has used, and intends to continue to use, the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.
Non-GAAP Financial Measures & Key Metrics
In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures.
Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Dynatrace considers these non-GAAP financial measures to be important because they provide useful indicators of its performance and liquidity measures. These are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In addition, investors often use similar measures to evaluate the performance of a company. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company’s operating performance. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the consolidated financial statements.
Dynatrace presents constant currency amounts for Revenue and Annual Recurring Revenue to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency 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. Dynatrace provides this non-GAAP financial information to aid investors in better understanding our performance.
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 Total ARR any revenues derived from month-to-month agreements and/or product usage overage billings.
Dynatrace Net Expansion Rate is defined as the Dynatrace® ARR at the end of a reporting period for the cohort of Dynatrace® accounts as of one year prior to the date of calculation, divided by the Dynatrace® ARR one year prior to the date of calculation for that same cohort. This calculation excludes the benefit of Dynatrace® ARR resulting from the conversion of Classic products to the Dynatrace® platform.
Dynatrace customers are defined as accounts, as identified by a unique account identifier, that generate at least $10,000 of Dynatrace® ARR as of the reporting date. In infrequent cases, a single large organization may comprise multiple customer accounts when there are distinct divisions, departments or subsidiaries that operate and make purchasing decisions independently from the parent organization. In cases where multiple customer accounts exist under a single organization, each customer account is counted separately based on a mutually exclusive accounting of ARR.
Unlevered Free Cash Flow is defined as net cash provided by (used in) operating activities and adjusted to exclude cash paid for interest (net of tax), non-recurring restructuring and acquisition related costs, along with costs associated with one-time offerings and filings, less cash used in investing activities for acquisition of property and equipment. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.
About Dynatrace
Dynatrace provides software intelligence to simplify cloud complexity and accelerate digital transformation. With automatic and intelligent observability at scale, our all-in-one platform delivers precise answers about the performance and security of applications, the underlying infrastructure, and the experience of all users to enable organizations to innovate faster, collaborate more efficiently, and deliver more value with dramatically less effort. That’s why many of the world’s largest enterprises trust Dynatrace® to modernize and automate cloud operations, release better software faster, and deliver unrivalled digital experiences.
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 regarding management’s expectations of future financial and operational performance and operational expenditures, expected growth, and business outlook, including our financial guidance for the third fiscal quarter and full year 2022, and statements regarding the size of our market and our positioning for capturing a larger share of our market. 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 “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, the effect of the COVID-19 pandemic on our business operations and demand for our products as well as its impact on general economic and financial market conditions, our ability to maintain our subscription revenue growth rates in future periods, our ability to service our substantial level of indebtedness, market adoption of software intelligence solutions for application performance monitoring, digital experience monitoring, infrastructure monitoring, AIOps, business intelligence and analytics and application security, continued spending on and demand for software intelligence solutions, our ability to maintain and acquire new customers, our ability to differentiate our platform from competing products and technologies; our ability to successfully recruit and retain highly-qualified personnel; the price volatility of our common stock, and other risks set forth under the caption “Risk Factors” in our Form 10-K filed on May 28, 2021 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 September 30, |
|
Six Months Ended September 30, |
||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||||
|
Revenue: |
|
|
|
|
|
|
|
||||||||||||
|
Subscription |
$ |
212,601 |
|
|
|
$ |
157,673 |
|
|
|
$ |
409,121 |
|
|
|
$ |
302,030 |
|
|
|
License |
— |
|
|
|
442 |
|
|
|
50 |
|
|
|
1,080 |
|
|
||||
|
Service |
13,753 |
|
|
|
10,471 |
|
|
|
26,923 |
|
|
|
20,984 |
|
|
||||
|
Total revenue |
226,354 |
|
|
|
168,586 |
|
|
|
436,094 |
|
|
|
324,094 |
|
|
||||
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||||||
|
Cost of subscription |
27,135 |
|
|
|
18,327 |
|
|
|
52,117 |
|
|
|
35,033 |
|
|
||||
|
Cost of service |
10,668 |
|
|
|
8,554 |
|
|
|
20,689 |
|
|
|
16,564 |
|
|
||||
|
Amortization of acquired technology |
3,864 |
|
|
|
3,830 |
|
|
|
7,694 |
|
|
|
7,656 |
|
|
||||
|
Total cost of revenue |
41,667 |
|
|
|
30,711 |
|
|
|
80,500 |
|
|
|
59,253 |
|
|
||||
|
Gross profit |
184,687 |
|
|
|
137,875 |
|
|
|
355,594 |
|
|
|
264,841 |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||||||
|
Research and development |
37,908 |
|
|
|
27,512 |
|
|
|
72,633 |
|
|
|
51,017 |
|
|
||||
|
Sales and marketing |
86,301 |
|
|
|
56,690 |
|
|
|
166,783 |
|
|
|
105,853 |
|
|
||||
|
General and administrative |
31,689 |
|
|
|
22,110 |
|
|
|
58,611 |
|
|
|
43,637 |
|
|
||||
|
Amortization of other intangibles |
7,539 |
|
|
|
8,686 |
|
|
|
15,079 |
|
|
|
17,372 |
|
|
||||
|
Restructuring and other |
(1 |
) |
|
|
46 |
|
|
|
25 |
|
|
|
25 |
|
|
||||
|
Total operating expenses |
163,436 |
|
|
|
115,044 |
|
|
|
313,131 |
|
|
|
217,904 |
|
|
||||
|
Income from operations |
21,251 |
|
|
|
22,831 |
|
|
|
42,463 |
|
|
|
46,937 |
|
|
||||
|
Interest expense, net |
(2,651 |
) |
|
|
(3,602 |
) |
|
|
(5,508 |
) |
|
|
(7,715 |
) |
|
||||
|
Other (expense) income, net |
(1,299 |
) |
|
|
199 |
|
|
|
12 |
|
|
|
218 |
|
|
||||
|
Income before income taxes |
17,301 |
|
|
|
19,428 |
|
|
|
36,967 |
|
|
|
39,440 |
|
|
||||
|
Income tax benefit (expense) |
6,340 |
|
|
|
(1,949 |
) |
|
|
(32 |
) |
|
|
(9,096 |
) |
|
||||
|
Net income |
$ |
23,641 |
|
|
|
$ |
17,479 |
|
|
|
$ |
36,935 |
|
|
|
$ |
30,344 |
|
|
|
Net income per share: |
|
|
|
|
|
|
|
||||||||||||
|
Basic |
$ |
0.08 |
|
|
|
$ |
0.06 |
|
|
|
$ |
0.13 |
|
|
|
$ |
0.11 |
|
|
|
Diluted |
$ |
0.08 |
|
|
|
$ |
0.06 |
|
|
|
$ |
0.13 |
|
|
|
$ |
0.11 |
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||||||
|
Basic |
283,923 |
|
|
|
280,077 |
|
|
|
283,295 |
|
|
|
279,577 |
|
|
||||
|
Diluted |
291,177 |
|
|
|
286,252 |
|
|
|
290,254 |
|
|
|
285,423 |
|
|
||||
|
UNAUDITED SHARE-BASED COMPENSATION |
|||||||||||||||
|
|
Three Months Ended September 30, |
|
Six Months Ended September 30, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Cost of revenue |
$ |
3,485 |
|
|
$ |
1,866 |
|
|
$ |
6,137 |
|
|
$ |
3,364 |
|
|
Research and development |
5,456 |
|
|
2,989 |
|
|
9,423 |
|
|
5,407 |
|
||||
|
Sales and marketing |
9,612 |
|
|
6,122 |
|
|
17,220 |
|
|
11,527 |
|
||||
|
General and administrative |
7,022 |
|
|
3,854 |
|
|
12,047 |
|
|
7,205 |
|
||||
|
Total share-based compensation expense |
$ |
25,575 |
|
|
$ |
14,831 |
|
|
$ |
44,827 |
|
|
$ |
27,503 |
|
|
DYNATRACE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) |
|||||||||
|
|
September 30, 2021 |
|
March 31, 2021 |
||||||
|
|
(unaudited) |
|
|
||||||
|
Assets |
|
|
|
||||||
|
Current assets: |
|
|
|
||||||
|
Cash and cash equivalents |
$ |
370,319 |
|
|
|
$ |
324,962 |
|
|
|
Accounts receivable, net |
149,801 |
|
|
|
242,079 |
|
|
||
|
Deferred commissions, current |
52,525 |
|
|
|
48,986 |
|
|
||
|
Prepaid expenses and other current assets |
80,065 |
|
|
|
64,255 |
|
|
||
|
Total current assets |
652,710 |
|
|
|
680,282 |
|
|
||
|
Property and equipment, net |
40,197 |
|
|
|
36,916 |
|
|
||
|
Operating lease right-of-use assets, net |
60,473 |
|
|
|
42,959 |
|
|
||
|
Goodwill |
1,282,631 |
|
|
|
1,271,195 |
|
|
||
|
Other intangible assets, net |
128,514 |
|
|
|
149,484 |
|
|
||
|
Deferred tax assets, net |
16,492 |
|
|
|
16,811 |
|
|
||
|
Deferred commissions, non-current |
50,766 |
|
|
|
48,638 |
|
|
||
|
Other assets |
11,114 |
|
|
|
9,933 |
|
|
||
|
Total assets |
$ |
2,242,897 |
|
|
|
$ |
2,256,218 |
|
|
|
|
|
|
|
||||||
|
Liabilities and shareholders’ equity |
|
|
|
||||||
|
Current liabilities: |
|
|
|
||||||
|
Accounts payable |
$ |
16,013 |
|
|
|
$ |
9,621 |
|
|
|
Accrued expenses, current |
105,423 |
|
|
|
119,527 |
|
|
||
|
Deferred revenue, current |
461,443 |
|
|
|
509,272 |
|
|
||
|
Operating lease liabilities, current |
11,214 |
|
|
|
9,491 |
|
|
||
|
Total current liabilities |
594,093 |
|
|
|
647,911 |
|
|
||
|
Deferred revenue, non-current |
22,630 |
|
|
|
47,504 |
|
|
||
|
Accrued expenses, non-current |
16,533 |
|
|
|
16,072 |
|
|
||
|
Operating lease liabilities, non-current |
54,371 |
|
|
|
38,203 |
|
|
||
|
Deferred tax liabilities |
1,361 |
|
|
|
1,014 |
|
|
||
|
Long-term debt |
332,907 |
|
|
|
391,913 |
|
|
||
|
Total liabilities |
1,021,895 |
|
|
|
1,142,617 |
|
|
||
|
|
|
|
|
||||||
|
Shareholders’ equity: |
|
|
|
||||||
|
Common shares, $0.001 par value, 600,000,000 shares authorized, 285,025,237 and 283,130,238 shares issued and outstanding at September 30, 2021 and March 31, 2021, respectively |
285 |
|
|
|
283 |
|
|
||
|
Additional paid-in capital |
1,723,056 |
|
|
|
1,653,328 |
|
|
||
|
Accumulated deficit |
(476,864 |
) |
|
|
(513,799 |
) |
|
||
|
Accumulated other comprehensive loss |
(25,475 |
) |
|
|
(26,211 |
) |
|
||
|
Total shareholders’ equity |
1,221,002 |
|
|
|
1,113,601 |
|
|
||
|
Total liabilities and shareholders’ equity |
$ |
2,242,897 |
|
|
|
$ |
2,256,218 |
|
|
|
DYNATRACE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited – In thousands) |
|||||||||
|
|
Six Months Ended September 30, |
||||||||
|
|
2021 |
|
|
2020 |
|
||||
|
Cash flows from operating activities: |
|
|
|
||||||
|
Net income |
$ |
36,935 |
|
|
|
$ |
30,344 |
|
|
|
Adjustments to reconcile net income to cash provided by operations: |
|
|
|
||||||
|
Depreciation |
5,049 |
|
|
|
3,797 |
|
|
||
|
Amortization |
23,057 |
|
|
|
26,032 |
|
|
||
|
Share-based compensation |
44,827 |
|
|
|
27,503 |
|
|
||
|
Deferred income taxes |
3 |
|
|
|
(3,160 |
) |
|
||
|
Other |
1,007 |
|
|
|
802 |
|
|
||
|
Net change in operating assets and liabilities: |
|
|
|
||||||
|
Accounts receivable |
92,314 |
|
|
|
49,353 |
|
|
||
|
Deferred commissions |
(6,347 |
) |
|
|
1,250 |
|
|
||
|
Prepaid expenses and other assets |
(16,456 |
) |
|
|
(4,944 |
) |
|
||
|
Accounts payable and accrued expenses |
(9,118 |
) |
|
|
(7,862 |
) |
|
||
|
Operating leases, net |
401 |
|
|
|
523 |
|
|
||
|
Deferred revenue |
(69,904 |
) |
|
|
(62,789 |
) |
|
||
|
Net cash provided by operating activities |
101,768 |
|
|
|
60,849 |
|
|
||
|
|
|
|
|
||||||
|
Cash flows from investing activities: |
|
|
|
||||||
|
Purchase of property and equipment |
(7,612 |
) |
|
|
(6,400 |
) |
|
||
|
Capitalized software additions |
— |
|
|
|
(184 |
) |
|
||
|
Acquisition of businesses, net of cash acquired |
(13,004 |
) |
|
|
— |
|
|
||
|
Net cash used in investing activities |
(20,616 |
) |
|
|
(6,584 |
) |
|
||
|
|
|
|
|
||||||
|
Cash flows from financing activities: |
|
|
|
||||||
|
Repayment of term loans |
(60,000 |
) |
|
|
(30,000 |
) |
|
||
|
Proceeds from employee stock purchase plan |
6,593 |
|
|
|
3,592 |
|
|
||
|
Proceeds from exercise of stock options |
18,339 |
|
|
|
4,829 |
|
|
||
|
Equity repurchases |
(30 |
) |
|
|
(25 |
) |
|
||
|
Net cash used in financing activities |
(35,098 |
) |
|
|
(21,604 |
) |
|
||
|
|
|
|
|
||||||
|
Effect of exchange rates on cash and cash equivalents |
(697 |
) |
|
|
2,606 |
|
|
||
|
|
|
|
|
||||||
|
Net increase in cash and cash equivalents |
45,357 |
|
|
|
35,267 |
|
|
||
|
|
|
|
|
||||||
|
Cash and cash equivalents, beginning of period |
324,962 |
|
|
|
213,170 |
|
|
||
|
Cash and cash equivalents, end of period |
$ |
370,319 |
|
|
|
$ |
248,437 |
|
|
|
|
|
|
|
||||||
|
Supplemental cash flow data: |
|
|
|
||||||
|
Cash paid for interest |
$ |
4,560 |
|
|
|
$ |
6,923 |
|
|
|
Cash paid for tax, net |
$ |
8,431 |
|
|
|
$ |
22,545 |
|
|
|
DYNATRACE, INC. GAAP to Non-GAAP Reconciliations (Unaudited – In thousands, except percentages) |
||||||||||||||||||||||||||||
|
|
Three Months Ended September 30, 2021 |
|||||||||||||||||||||||||||
|
|
GAAP |
|
Share-based |
|
Employer |
|
Amortization |
|
Restructuring |
|
Non-GAAP |
|||||||||||||||||
|
Non-GAAP operating income: |
||||||||||||||||||||||||||||
|
Cost of revenue |
$ |
41,667 |
|
|
|
$ |
(3,485 |
) |
|
|
$ |
(452 |
) |
|
|
$ |
(3,864 |
) |
|
|
$ |
— |
|
|
|
$ |
33,866 |
|
|
Gross profit |
184,687 |
|
|
|
3,485 |
|
|
|
452 |
|
|
|
3,864 |
|
|
|
— |
|
|
|
192,488 |
|
||||||
|
Gross margin |
82 |
|
% |
|
|
|
|
|
|
|
|
|
85 |
% |
||||||||||||||
|
Research and development |
37,908 |
|
|
|
(5,456 |
) |
|
|
(501 |
) |
|
|
— |
|
|
|
— |
|
|
|
31,951 |
|
||||||
|
Sales and marketing |
86,301 |
|
|
|
(9,612 |
) |
|
|
(785 |
) |
|
|
— |
|
|
|
— |
|
|
|
75,904 |
|
||||||
|
General and administrative |
31,689 |
|
|
|
(7,022 |
) |
|
|
(253 |
) |
|
|
— |
|
|
|
(1,249 |
) |
|
|
23,165 |
|
||||||
|
Amortization of other intangibles |
7,539 |
|
|
|
— |
|
|
|
— |
|
|
|
(7,539 |
) |
|
|
— |
|
|
|
— |
|
||||||
|
Restructuring and other |
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
||||||
|
Operating income |
$ |
21,251 |
|
|
|
$ |
25,575 |
|
|
|
$ |
1,991 |
|
|
|
$ |
11,403 |
|
|
|
$ |
1,248 |
|
|
|
$ |
61,468 |
|
|
Operating margin |
9 |
|
% |
|
|
|
|
|
|
|
|
|
27 |
% |
||||||||||||||
|
|
Three Months Ended September 30, 2020 |
||||||||||||||||||||||||||
|
|
GAAP |
|
Share-based |
|
Employer |
|
Amortization |
|
Restructuring |
|
Non-GAAP |
||||||||||||||||
|
Non-GAAP operating income: |
|||||||||||||||||||||||||||
|
Cost of revenue |
$ |
30,711 |
|
|
$ |
(1,866 |
) |
|
|
$ |
(359 |
) |
|
|
$ |
(3,830 |
) |
|
|
$ |
— |
|
|
|
$ |
24,656 |
|
|
Gross profit |
137,875 |
|
|
1,866 |
|
|
|
359 |
|
|
|
3,830 |
|
|
|
— |
|
|
|
143,930 |
|
||||||
|
Gross margin |
82 |
% |
|
|
|
|
|
|
|
|
|
85 |
% |
||||||||||||||
|
Research and development |
27,512 |
|
|
(2,989 |
) |
|
|
(592 |
) |
|
|
— |
|
|
|
— |
|
|
|
23,931 |
|
||||||
|
Sales and marketing |
56,690 |
|
|
(6,122 |
) |
|
|
(578 |
) |
|
|
— |
|
|
|
— |
|
|
|
49,990 |
|
||||||
|
General and administrative |
22,110 |
|
|
(3,854 |
) |
|
|
(167 |
) |
|
|
— |
|
|
|
(1,339 |
) |
|
|
16,750 |
|
||||||
|
Amortization of other intangibles |
8,686 |
|
|
— |
|
|
|
— |
|
|
|
(8,686 |
) |
|
|
— |
|
|
|
— |
|
||||||
|
Restructuring and other |
46 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(46 |
) |
|
|
— |
|
||||||
|
Operating income |
$ |
22,831 |
|
|
$ |
14,831 |
|
|
|
$ |
1,696 |
|
|
|
$ |
12,516 |
|
|
|
$ |
1,385 |
|
|
|
$ |
53,259 |
|
|
Operating margin |
14 |
% |
|
|
|
|
|
|
|
|
|
32 |
% |
||||||||||||||
Contacts
Investor:
Noelle Faris
VP, Investor Relations
Noelle.Faris@dynatrace.com
Media Relations:
Jerome Stewart
VP, Communications
Jerome.Stewart@dynatrace.com
Read full story here
