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Jun 30, 2022

Dynatrace Q1 2023 Earnings Report

Solid execution with balanced growth and profitability was delivered, highlighting the durability of the business.

Key Takeaways

Dynatrace released financial results for the first quarter of fiscal 2023, reporting a 34% year-over-year growth in Adjusted ARR and a total revenue of $267 million, up 32% on a constant currency basis.

Total ARR of $1,031 million, Adjusted ARR growth of 34% year-over-year.

Total Revenue of $267 million, up 32% on a constant currency basis.

Subscription Revenue of $250 million, up 32% on a constant currency basis.

Added 135 new logos to the Dynatrace® platform in the first quarter, consistent with the first quarter of last fiscal year.

Total Revenue
$267M
Previous year: $210M
+27.4%
EPS
$0.18
Previous year: $0.16
+12.5%
Total ARR
$1.03B
Previous year: $823M
+25.3%
Gross Profit
$215M
Previous year: $171M
+26.1%
Cash and Equivalents
$571M
Previous year: $387M
+47.6%
Free Cash Flow
$136M
Previous year: $80.5M
+69.1%
Total Assets
$2.43B
Previous year: $2.21B
+9.8%

Dynatrace

Dynatrace

Dynatrace Revenue by Segment

Forward Guidance

Dynatrace is issuing guidance for the second quarter and updating guidance for full year fiscal 2023.

Positive Outlook

  • Q2 Total revenue between $272 - $275 million
  • Q2 Subscription revenue between $255 - $257 million
  • Q2 Non-GAAP operating income between $62 - $64.5 million
  • Q2 Non-GAAP net income between $52.5 - $55 million
  • Q2 Non-GAAP net income per diluted share between $0.18 - $0.19

Challenges Ahead

  • Total ARR between $1,213 - $1,226 million
  • Total revenue between $1,125 - $1,136 million
  • Subscription revenue between $1,053 - $1,062 million
  • Non-GAAP operating income between $252 - $261 million
  • Free cash flow between $310 - $325 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income