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Dynatrace
🇺🇸 NYSE:DT
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•
Dec 31, 2020

Dynatrace Q3 2021 Earnings Report

Dynatrace's financial performance was strong, marked by significant ARR growth and successful expansion in the cloud application security market.

Key Takeaways

Dynatrace reported strong third-quarter fiscal year 2021 results, with a 35% year-over-year increase in ARR and a 28% increase in total revenue. The company also expanded its strategic partnerships with Google Cloud Platform and Microsoft Azure.

ARR increased by 35% year-over-year, reaching $722.0 million.

Subscription revenue grew by 33% year-over-year, totaling $170.3 million.

GAAP EPS was reported at $0.06, and non-GAAP EPS at $0.17 on a dilutive basis.

Dynatrace entered the Cloud Application Security market, estimating a $18 billion TAM over time.

Total Revenue
$183M
Previous year: $139M
+31.2%
EPS
$0.17
Previous year: $0.1
+70.0%
Total ARR
$722M
Previous year: $535M
+35.1%
Gross Profit
$150M
Previous year: $115M
+30.7%
Cash and Equivalents
$300M
Previous year: $189M
+58.8%
Free Cash Flow
$71.2M
Previous year: $5.75M
+1139.7%
Total Assets
$2.17B
Previous year: $1.99B
+9.0%

Dynatrace

Dynatrace

Dynatrace Revenue by Segment

Forward Guidance

Dynatrace is issuing guidance for the fourth quarter and raising guidance for full year fiscal 2021.

Positive Outlook

  • Total revenue is expected to be in the range of $190 million to $192 million for Q4 2021.
  • Subscription revenue is expected to be in the range of $178 million to $180 million for Q4 2021.
  • Non-GAAP operating income is expected to be in the range of $44 million to $46 million for Q4 2021.
  • Non-GAAP net income is expected to be in the range of $38 million to $40 million for Q4 2021.
  • Total ARR is expected to be in the range of $756 million to $760 million for fiscal year 2021.

Challenges Ahead

  • Guidance factors in the expected impacts of COVID‑19 on the business.
  • Outlook assumes a continued challenging economic environment.
  • Many customers and prospects are operating under very challenging circumstances and may reduce or re-evaluate their spend.
  • Significant variation from these assumptions could cause the company to raise, lower or modify expectations and guidance.
  • 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

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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