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Sep 30, 2022
Dynatrace Q2 2023 Earnings Report
Dynatrace's Q2 2023 financial results were released, demonstrating performance exceeding guidance across key metrics with adjusted ARR growth of 33% year-over-year.
Key Takeaways
Dynatrace reported strong second-quarter results, exceeding guidance across all key metrics. Total ARR reached $1,065 million, with adjusted ARR growth of 33% year-over-year. Total revenue was $279 million, up 30% on a constant currency basis, and subscription revenue was $261 million, up 29% on a constant currency basis. EPS was $0.04, and Non-GAAP EPS was $0.22.
Total ARR reached $1,065 million, with adjusted ARR growth of 33% year-over-year.
Total revenue was $279 million, up 30% on a constant currency basis.
Subscription revenue was $261 million, up 29% on a constant currency basis.
Dynatrace launched its core Grail™ technology within the Dynatrace Platform, a major advancement in data analytics.
Dynatrace
Dynatrace
Dynatrace Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
Dynatrace is issuing guidance for the third quarter and updating guidance for the full year fiscal 2023. The company expects a total revenue of $283 - $286 million for Q3 2023 and $1,119 - $1,126 million for fiscal year 2023. Total ARR is expected to be $1,164 - $1,172 million for fiscal year 2023.
Positive Outlook
- Total revenue for Q3 Fiscal 2023 is expected to be $283 - $286 million.
- Subscription revenue for Q3 Fiscal 2023 is expected to be $266.5 - $268.5 million.
- Non-GAAP operating income for Q3 Fiscal 2023 is expected to be $71.5 - $73.5 million.
- Total ARR for fiscal year 2023 is expected to be $1,164 - $1,172 million.
- Total revenue for fiscal year 2023 is expected to be $1,119 - $1,126 million.
Challenges Ahead
- Total ARR guidance for fiscal year 2023 was decreased by $(52) million.
- Total revenue guidance for fiscal year 2023 was decreased by $(8) million.
- Subscription revenue guidance for fiscal year 2023 was decreased by $(8) million.
- The total FY23 FX impact on ARR is expected to be approximately $60 million.
- The total FY23 FX impact on Revenue is expected to be approximately $60 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income