- ARR of $930 million, up 29% year-over-year, or 32% on a constant currency basis
- Subscription revenue of $226 million, up 33% year-over-year, or 34% on a constant currency basis
- GAAP EPS of $0.05 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 third quarter of its fiscal 2022 ended December 31, 2021.
“Having completed my first quarter as CEO, I am very pleased with our third quarter performance, beating the high end of guidance across our key operating metrics driven by new logo additions and continued net expansion rate above 120%,” said Rick McConnell, Chief Executive Officer. “Our strong performance fuels our belief that customers increasingly view our software intelligence platform as an indispensable part of their digital transformation ecosystem. Looking ahead, we plan to further increase investments to capture the tremendous market opportunity ahead of us with the objective of accelerating growth as we scale to build a multibillion-dollar business.”
Third Quarter Fiscal 2022 and Other Recent Business Highlights:
All growth rates are compared to the third quarter of fiscal 2021 unless otherwise noted.
Financial Highlights:
- ARR of $930 million, an increase of 29%, or 32% on a constant currency basis
- Total Revenue of $241 million, an increase of 32%, or 33% on a constant currency basis
- Subscription revenue of $226 million, an increase of 33% as reported, or 34% 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 $0.05 and non-GAAP EPS of $0.18, on a dilutive basis
Business Highlights:
- Go-to-market momentum: Added 206 new logos in the quarter for a total of 501 new logos added to the Dynatrace platform on a year-to-date basis, an increase of 22% compared to the same period last year, with more than 44% of new customers landing with three or more modules, compared to 33% for the same period last year.
- Managed security vulnerabilities at scale: Log4j vulnerability accelerated interest in Dynatrace® for application security and highlighted our unique ability to instantly identify and prioritize security vulnerabilities in production, driving a 10x increase in POCs in the quarter ending December 31, 2021, up from dozens in the previous quarter ending September 30, 2021.
- Partnership expansion: Accelerated traction with partners influencing more than 50% of new transactions closed in the third quarter. New ARR transacted through hyperscaler partnerships more than tripled compared to the same period last year.
|
Third Quarter 2022 Financial Highlights (Unaudited – In thousands, except per share data) |
|||||||
|
|
Three Months Ended December 31, |
||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
Key Operating Metric: |
|
|
|
||||
|
Annualized recurring revenue |
$ |
929,906 |
|
|
$ |
721,995 |
|
|
Year-over-Year Increase |
|
29 |
% |
|
|
||
|
|
|
|
|
||||
|
Annualized recurring revenue – constant currency (*) |
$ |
951,056 |
|
|
$ |
721,995 |
|
|
Year-over-Year Increase |
|
32 |
% |
|
|
||
|
|
|
|
|
||||
|
Revenue: |
|
|
|
||||
|
Total revenue |
$ |
240,766 |
|
|
$ |
182,911 |
|
|
Year-over-Year Increase |
|
32 |
% |
|
|
||
|
|
|
|
|
||||
|
Total revenue – constant currency (*) |
$ |
242,928 |
|
|
$ |
182,911 |
|
|
Year-over-Year Increase |
|
33 |
% |
|
|
||
|
|
|
|
|
||||
|
Subscription revenue |
$ |
226,290 |
|
|
$ |
170,308 |
|
|
Year-over-Year Increase |
|
33 |
% |
|
|
||
|
|
|
|
|
||||
|
Subscription revenue – constant currency (*) |
$ |
228,339 |
|
|
$ |
170,308 |
|
|
Year-over-Year Increase |
|
34 |
% |
|
|
||
|
|
|
|
|
||||
|
Non-GAAP Financial Measures: |
|
|
|
||||
|
Non-GAAP operating income (*) |
$ |
61,102 |
|
|
$ |
53,401 |
|
|
Non-GAAP operating margin (*) |
|
25 |
% |
|
|
29 |
% |
|
|
|
|
|
||||
|
Non-GAAP net income (*) |
$ |
52,020 |
|
|
$ |
46,600 |
|
|
|
|
|
|
||||
|
Non-GAAP net income per share – diluted |
$ |
0.18 |
|
|
$ |
0.16 |
|
|
|
|
|
|
||||
|
Non-GAAP shares outstanding – diluted |
|
291,845 |
|
|
|
286,427 |
|
|
|
|
|
|
||||
|
Unlevered Free Cash Flow (*) |
$ |
59,186 |
|
|
$ |
73,989 |
|
* 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 February 2, 2022, Dynatrace is issuing guidance for the fourth quarter and raising guidance for full year fiscal 2022 as follows:
|
(In millions, except per share data)) |
Q4 Fiscal 2022 |
|
|||
|
Total revenue |
$245 – $247 |
|
|||
|
As reported |
25% – 26% |
|
|||
|
Constant currency |
27% – 28% |
|
|||
|
Subscription revenue |
$230.5 – $232 |
|
|||
|
As reported |
26% – 27% |
|
|||
|
Constant currency |
29% – 30% |
|
|||
|
Non-GAAP operating income |
$51.5 – $53.5 |
|
|||
|
Non-GAAP net income |
$44 – $45.5 |
|
|||
|
Non-GAAP net income per diluted share |
$0.15 – $0.16 |
|
|||
|
Diluted weighted average shares outstanding |
292 – 292.5 |
|
|||
|
|
|
|
|||
|
|
|
|
|||
|
(In millions, except per share data) |
Current Guidance |
|
Prior Guidance |
|
Guidance Change |
|
Total ARR |
$990 – $996 |
|
$986 – $996 |
|
$2 |
|
As reported |
28% – 29% |
|
27% – 29% |
|
50 bps |
|
Constant currency |
30% – 31% |
|
29% – 30% |
|
100 bps |
|
Total revenue |
$922 – $924 |
|
$913 – $919 |
|
$7 |
|
As reported |
31% |
|
30% – 31% |
|
100 bps |
|
Constant currency |
30% – 31% |
|
29% – 30% |
|
100 bps |
|
Subscription revenue |
$866 – $867.5 |
|
$857.5 – $862.5 |
|
$7 |
|
As reported |
32% |
|
31% – 32% |
|
100 bps |
|
Constant currency |
32% |
|
30% – 31% |
|
150 bps |
|
Non-GAAP operating income |
$228 – $230 |
|
$219 – $226 |
|
$7 |
|
Non-GAAP net income |
$193 – $195 |
|
$185 – $191 |
|
$6 |
|
Non-GAAP net income per diluted share |
$0.66 – $0.67 |
|
$0.63 – $0.65 |
|
$0.02 |
|
Diluted weighted average shares outstanding |
291 – 291.5 |
|
292 – 293 |
|
(1.3) |
|
Unlevered free cash flow |
$268 – $275 |
|
$263 – $275 |
|
$2.5 |
|
Unlevered free cash flow margin |
29% – 30% |
|
29% – 30% |
|
unchanged |
|
|
|
|
|||
Our guidance is based on foreign exchange rates as of December 31, 2021.
Reconciliation of non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted 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, February 2, 2022. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with conference ID # 13726069. 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 February 16, 2022, by dialing (877) 660-6853 from the U.S. or Canada, or for international callers by dialing (201) 612-7415 and entering conference ID # 13726069. 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 fourth 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. |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Revenue: |
|
|
|
|
|
|
|
||||||||
|
Subscription |
$ |
226,290 |
|
|
$ |
170,308 |
|
|
$ |
635,411 |
|
|
$ |
472,338 |
|
|
License |
|
2 |
|
|
|
257 |
|
|
|
52 |
|
|
|
1,337 |
|
|
Service |
|
14,474 |
|
|
|
12,346 |
|
|
|
41,397 |
|
|
|
33,330 |
|
|
Total revenue |
|
240,766 |
|
|
|
182,911 |
|
|
|
676,860 |
|
|
|
507,005 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
|
Cost of subscription |
|
28,284 |
|
|
|
20,382 |
|
|
|
80,401 |
|
|
|
55,415 |
|
|
Cost of service |
|
12,232 |
|
|
|
8,907 |
|
|
|
32,921 |
|
|
|
25,471 |
|
|
Amortization of acquired technology |
|
3,944 |
|
|
|
3,831 |
|
|
|
11,638 |
|
|
|
11,487 |
|
|
Total cost of revenue |
|
44,460 |
|
|
|
33,120 |
|
|
|
124,960 |
|
|
|
92,373 |
|
|
Gross profit |
|
196,306 |
|
|
|
149,791 |
|
|
|
551,900 |
|
|
|
414,632 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Research and development |
|
40,876 |
|
|
|
28,730 |
|
|
|
113,509 |
|
|
|
79,747 |
|
|
Sales and marketing |
|
94,033 |
|
|
|
64,829 |
|
|
|
260,816 |
|
|
|
170,682 |
|
|
General and administrative |
|
32,643 |
|
|
|
23,442 |
|
|
|
91,254 |
|
|
|
67,079 |
|
|
Amortization of other intangibles |
|
7,539 |
|
|
|
8,685 |
|
|
|
22,618 |
|
|
|
26,057 |
|
|
Restructuring and other |
|
— |
|
|
|
(2 |
) |
|
|
25 |
|
|
|
23 |
|
|
Total operating expenses |
|
175,091 |
|
|
|
125,684 |
|
|
|
488,222 |
|
|
|
343,588 |
|
|
Income from operations |
|
21,215 |
|
|
|
24,107 |
|
|
|
63,678 |
|
|
|
71,044 |
|
|
Interest expense, net |
|
(2,450 |
) |
|
|
(3,455 |
) |
|
|
(7,958 |
) |
|
|
(11,170 |
) |
|
Other (expense) income, net |
|
(1,357 |
) |
|
|
2,526 |
|
|
|
(1,345 |
) |
|
|
2,744 |
|
|
Income before income taxes |
|
17,408 |
|
|
|
23,178 |
|
|
|
54,375 |
|
|
|
62,618 |
|
|
Income tax expense |
|
(2,821 |
) |
|
|
(4,762 |
) |
|
|
(2,853 |
) |
|
|
(13,858 |
) |
|
Net income |
$ |
14,587 |
|
|
$ |
18,416 |
|
|
$ |
51,522 |
|
|
$ |
48,760 |
|
|
Net income per share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.05 |
|
|
$ |
0.07 |
|
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
Diluted |
$ |
0.05 |
|
|
$ |
0.06 |
|
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
284,722 |
|
|
|
281,010 |
|
|
|
283,773 |
|
|
|
280,057 |
|
|
Diluted |
|
291,845 |
|
|
|
286,427 |
|
|
|
290,895 |
|
|
|
285,884 |
|
|
UNAUDITED SHARE-BASED COMPENSATION |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
||||
|
Cost of revenue |
$ |
3,405 |
|
$ |
2,066 |
|
$ |
9,542 |
|
$ |
5,430 |
||||
|
Research and development |
|
5,908 |
|
|
3,259 |
|
|
15,331 |
|
|
8,666 |
||||
|
Sales and marketing |
|
9,267 |
|
|
6,480 |
|
|
26,487 |
|
|
18,007 |
||||
|
General and administrative |
|
8,543 |
|
|
3,783 |
|
|
20,590 |
|
|
10,988 |
||||
|
Total share-based compensation |
$ |
27,123 |
|
$ |
15,588 |
|
$ |
71,950 |
|
$ |
43,091 |
||||
|
DYNATRACE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) |
|||||||
|
|
December 31, |
|
March 31, |
||||
|
|
(unaudited) |
|
|
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
408,723 |
|
|
$ |
324,962 |
|
|
Accounts receivable, net |
|
264,293 |
|
|
|
242,079 |
|
|
Deferred commissions, current |
|
57,978 |
|
|
|
48,986 |
|
|
Prepaid expenses and other current assets |
|
81,326 |
|
|
|
64,255 |
|
|
Total current assets |
|
812,320 |
|
|
|
680,282 |
|
|
Property and equipment, net |
|
41,984 |
|
|
|
36,916 |
|
|
Operating lease right-of-use assets, net |
|
59,306 |
|
|
|
42,959 |
|
|
Goodwill |
|
1,281,764 |
|
|
|
1,271,195 |
|
|
Other intangible assets, net |
|
117,908 |
|
|
|
149,484 |
|
|
Deferred tax assets, net |
|
16,390 |
|
|
|
16,811 |
|
|
Deferred commissions, non-current |
|
58,086 |
|
|
|
48,638 |
|
|
Other assets |
|
10,003 |
|
|
|
9,933 |
|
|
Total assets |
$ |
2,397,761 |
|
|
$ |
2,256,218 |
|
|
|
|
|
|
||||
|
Liabilities and shareholders’ equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
22,256 |
|
|
$ |
9,621 |
|
|
Accrued expenses, current |
|
116,154 |
|
|
|
119,527 |
|
|
Deferred revenue, current |
|
563,045 |
|
|
|
509,272 |
|
|
Operating lease liabilities, current |
|
11,700 |
|
|
|
9,491 |
|
|
Total current liabilities |
|
713,155 |
|
|
|
647,911 |
|
|
Deferred revenue, non-current |
|
30,937 |
|
|
|
47,504 |
|
|
Accrued expenses, non-current |
|
20,046 |
|
|
|
16,072 |
|
|
Operating lease liabilities, non-current |
|
52,976 |
|
|
|
38,203 |
|
|
Deferred tax liabilities |
|
1,217 |
|
|
|
1,014 |
|
|
Long-term debt |
|
303,415 |
|
|
|
391,913 |
|
|
Total liabilities |
|
1,121,746 |
|
|
|
1,142,617 |
|
|
|
|
|
|
||||
|
Shareholders’ equity: |
|
|
|
||||
|
Common shares, $0.001 par value, 600,000,000 shares authorized, 285,701,744 and 283,130,238 shares issued and outstanding at December 31, 2021 and March 31, 2021, respectively |
|
286 |
|
|
|
283 |
|
|
Additional paid-in capital |
|
1,762,789 |
|
|
|
1,653,328 |
|
|
Accumulated deficit |
|
(462,277 |
) |
|
|
(513,799 |
) |
|
Accumulated other comprehensive loss |
|
(24,783 |
) |
|
|
(26,211 |
) |
|
Total shareholders’ equity |
|
1,276,015 |
|
|
|
1,113,601 |
|
|
Total liabilities and shareholders’ equity |
$ |
2,397,761 |
|
|
$ |
2,256,218 |
|
|
DYNATRACE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited – In thousands) |
|||||||
|
|
Nine Months Ended |
||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
Cash flows from operating activities: |
|
|
|
||||
|
Net income |
$ |
51,522 |
|
|
$ |
48,760 |
|
|
Adjustments to reconcile net income to cash provided by operations: |
|
|
|
||||
|
Depreciation |
|
7,788 |
|
|
|
6,589 |
|
|
Amortization |
|
34,682 |
|
|
|
39,046 |
|
|
Share-based compensation |
|
71,950 |
|
|
|
43,091 |
|
|
Deferred income taxes |
|
34 |
|
|
|
(3,014 |
) |
|
Other |
|
2,872 |
|
|
|
(1,240 |
) |
|
Net change in operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable |
|
(22,362 |
) |
|
|
(37,693 |
) |
|
Deferred commissions |
|
(19,581 |
) |
|
|
(6,380 |
) |
|
Prepaid expenses and other assets |
|
(17,508 |
) |
|
|
25,920 |
|
|
Accounts payable and accrued expenses |
|
10,987 |
|
|
|
14,891 |
|
|
Operating leases, net |
|
683 |
|
|
|
599 |
|
|
Deferred revenue |
|
41,545 |
|
|
|
3,996 |
|
|
Net cash provided by operating activities |
|
162,612 |
|
|
|
134,565 |
|
|
|
|
|
|
||||
|
Cash flows from investing activities: |
|
|
|
||||
|
Purchase of property and equipment |
|
(11,768 |
) |
|
|
(8,868 |
) |
|
Capitalized software additions |
|
— |
|
|
|
(248 |
) |
|
Acquisition of businesses, net of cash acquired |
|
(13,195 |
) |
|
|
— |
|
|
Net cash used in investing activities |
|
(24,963 |
) |
|
|
(9,116 |
) |
|
|
|
|
|
||||
|
Cash flows from financing activities: |
|
|
|
||||
|
Repayment of term loans |
|
(90,000 |
) |
|
|
(60,000 |
) |
|
Proceeds from employee stock purchase plan |
|
13,913 |
|
|
|
9,195 |
|
|
Proceeds from exercise of stock options |
|
23,650 |
|
|
|
6,849 |
|
|
Equity repurchases |
|
(51 |
) |
|
|
(36 |
) |
|
Net cash used in financing activities |
|
(52,488 |
) |
|
|
(43,992 |
) |
|
|
|
|
|
||||
|
Effect of exchange rates on cash and cash equivalents |
|
(1,400 |
) |
|
|
4,878 |
|
|
|
|
|
|
||||
|
Net increase in cash and cash equivalents |
|
83,761 |
|
|
|
86,335 |
|
|
|
|
|
|
||||
|
Cash and cash equivalents, beginning of period |
|
324,962 |
|
|
|
213,170 |
|
|
Cash and cash equivalents, end of period |
$ |
408,723 |
|
|
$ |
299,505 |
|
|
|
|
|
|
||||
|
Supplemental cash flow data: |
|
|
|
||||
|
Cash paid for interest |
$ |
6,549 |
|
|
$ |
9,914 |
|
|
Cash paid for (received from) tax, net |
$ |
12,902 |
|
|
$ |
(14,472 |
) |
|
DYNATRACE, INC. GAAP to Non-GAAP Reconciliations (Unaudited – In thousands, except percentages) |
|||||||||||||||||||||||
|
|
Three Months Ended December 31, 2021 |
||||||||||||||||||||||
|
|
GAAP |
|
Share-based |
|
Employer |
|
Amortization |
|
Restructuring |
|
Non-GAAP |
||||||||||||
|
Non-GAAP operating income: |
|||||||||||||||||||||||
|
Cost of revenue |
$ |
44,460 |
|
|
$ |
(3,405 |
) |
|
$ |
(149 |
) |
|
$ |
(3,944 |
) |
|
$ |
— |
|
|
$ |
36,962 |
|
|
Gross profit |
|
196,306 |
|
|
|
3,405 |
|
|
|
149 |
|
|
|
3,944 |
|
|
|
— |
|
|
|
203,804 |
|
|
Gross margin |
|
82 |
% |
|
|
|
|
|
|
|
|
|
|
85 |
% |
||||||||
|
Research and development |
|
40,876 |
|
|
|
(5,908 |
) |
|
|
(493 |
) |
|
|
— |
|
|
|
— |
|
|
|
34,475 |
|
|
Sales and marketing |
|
94,033 |
|
|
|
(9,267 |
) |
|
|
(511 |
) |
|
|
— |
|
|
|
— |
|
|
|
84,255 |
|
|
General and administrative |
|
32,643 |
|
|
|
(8,543 |
) |
|
|
(124 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
23,972 |
|
|
Amortization of other intangibles |
|
7,539 |
|
|
|
— |
|
|
|
— |
|
|
|
(7,539 |
) |
|
|
— |
|
|
|
— |
|
|
Restructuring and other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Operating income |
$ |
21,215 |
|
|
$ |
27,123 |
|
|
$ |
1,277 |
|
|
$ |
11,483 |
|
|
$ |
4 |
|
|
$ |
61,102 |
|
|
Operating margin |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
25 |
% |
||||||||
|
|
Three Months Ended December 31, 2020 |
||||||||||||||||||||||
|
|
GAAP |
|
Share-based |
|
Employer |
|
Amortization |
|
Restructuring |
|
Non-GAAP |
||||||||||||
|
Non-GAAP operating income: |
|||||||||||||||||||||||
|
Cost of revenue |
$ |
33,120 |
|
|
$ |
(2,066 |
) |
|
$ |
(82 |
) |
|
$ |
(3,831 |
) |
|
$ |
— |
|
|
$ |
27,141 |
|
|
Gross profit |
|
149,791 |
|
|
|
2,066 |
|
|
|
82 |
|
|
|
3,831 |
|
|
|
— |
|
|
|
155,770 |
|
|
Gross margin |
|
82 |
% |
|
|
|
|
|
|
|
|
|
|
85 |
% |
||||||||
|
Research and development |
|
28,730 |
|
|
|
(3,259 |
) |
|
|
(288 |
) |
|
|
— |
|
|
|
— |
|
|
|
25,183 |
|
|
Sales and marketing |
|
64,829 |
|
|
|
(6,480 |
) |
|
|
(288 |
) |
|
|
— |
|
|
|
— |
|
|
|
58,061 |
|
|
General and administrative |
|
23,442 |
|
|
|
(3,783 |
) |
|
|
(34 |
) |
|
|
— |
|
|
|
(500 |
) |
|
|
19,125 |
|
|
Amortization of other intangibles |
|
8,685 |
|
|
|
— |
|
|
|
— |
|
|
|
(8,685 |
) |
|
|
— |
|
|
|
— |
|
|
Restructuring and other |
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
Operating income |
$ |
24,107 |
|
|
$ |
15,588 |
|
|
$ |
692 |
|
|
$ |
12,516 |
|
|
$ |
498 |
|
|
$ |
53,401 |
|
|
Operating margin |
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
29 |
% |
||||||||
|
DYNATRACE, INC. GAAP to Non-GAAP Reconciliations (Unaudited – In thousands, except per share data) |
|||||||
|
|
Three Months Ended |
||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
Non-GAAP net income: |
|
|
|
||||
|
Net income |
$ |
14,587 |
|
|
$ |
18,416 |
|
|
Income tax expense |
|
2,821 |
|
|
|
4,762 |
|
|
Non-GAAP effective cash tax |
|
(7,093 |
) |
|
|
(3,810 |
) |
|
Interest expense, net |
|
2,450 |
|
|
|
3,455 |
|
|
Cash paid for interest |
|
(1,989 |
) |
|
|
(2,991 |
) |
|
Share-based compensation |
|
27,123 |
|
|
|
15,588 |
|
|
Employer payroll taxes on employee stock transactions |
|
1,277 |
|
|
|
692 |
|
|
Amortization of other intangibles |
|
7,539 |
|
|
|
8,685 |
|
|
Amortization of acquired technology |
|
3,944 |
|
|
|
3,831 |
|
|
Transaction, restructuring, and other |
|
4 |
|
|
|
498 |
|
|
Loss (gain) on currency translation |
|
1,357 |
|
|
|
(2,526 |
) |
|
Non-GAAP net income |
$ |
52,020 |
|
|
$ |
46,600 |
|
|
|
|
|
|
||||
|
Share count: |
|
|
|
||||
|
Weighted-average shares outstanding – basic |
|
284,722 |
|
|
|
281,010 |
|
|
Weighted-average shares outstanding – diluted |
|
291,845 |
|
|
|
286,427 |
|
|
|
|
|
|
||||
|
Shares used in non-GAAP per share calculations: |
|
|
|
||||
|
Weighted-average shares outstanding – basic |
|
284,722 |
|
|
|
281,010 |
|
|
Weighted-average shares outstanding – diluted |
|
291,845 |
|
|
|
286,427 |
|
|
|
|
|
|
||||
|
Net income per share: |
|
|
|
||||
|
Net income per share – basic |
$ |
0.05 |
|
|
$ |
0.07 |
|
|
Net income per share – diluted |
$ |
0.05 |
|
|
$ |
0.06 |
|
|
Non-GAAP net income per share – basic |
$ |
0.18 |
|
|
$ |
0.17 |
|
|
Non-GAAP net income per share – diluted |
$ |
0.18 |
|
|
$ |
0.16 |
|
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
