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Dec 31, 2021

Dynatrace Q3 2022 Earnings Report

Dynatrace's Q3 2022 financial results were reported, demonstrating strong performance driven by new logo additions and a net expansion rate above 120%.

Key Takeaways

Dynatrace reported a strong third quarter in fiscal year 2022, exceeding guidance across key operating metrics. ARR reached $930 million, up 29% year-over-year, and subscription revenue grew by 33% to $226 million. The company added 206 new logos and saw increased partner influence in new transactions.

ARR reached $930 million, a 29% increase year-over-year (32% on a constant currency basis).

Total revenue was $241 million, up 32% year-over-year (33% on a constant currency basis).

Subscription revenue increased by 33% to $226 million, representing 94% of total revenue.

GAAP EPS was $0.05, and non-GAAP EPS was $0.18 on a diluted basis.

Total Revenue
$241M
Previous year: $183M
+31.6%
EPS
$0.18
Previous year: $0.17
+5.9%
Total ARR
$930M
Previous year: $722M
+28.8%
Gross Profit
$196M
Previous year: $150M
+31.1%
Cash and Equivalents
$409M
Previous year: $300M
+36.5%
Free Cash Flow
$56.7M
Previous year: $71.2M
-20.4%
Total Assets
$2.4B
Previous year: $2.17B
+10.7%

Dynatrace

Dynatrace

Dynatrace Revenue by Segment

Forward Guidance

Dynatrace is issuing guidance for the fourth quarter and raising guidance for full year fiscal 2022.

Positive Outlook

  • Total revenue for Q4 Fiscal 2022 is expected to be $245 - $247 million.
  • Subscription revenue for Q4 Fiscal 2022 is expected to be $230.5 - $232 million.
  • Non-GAAP operating income for Q4 Fiscal 2022 is expected to be $51.5 - $53.5 million.
  • Non-GAAP net income for Q4 Fiscal 2022 is expected to be $44 - $45.5 million.
  • Non-GAAP net income per diluted share for Q4 Fiscal 2022 is expected to be $0.15 - $0.16.

Revenue & Expenses

Visualization of income flow from segment revenue to net income