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Mar 31, 2022
Dynatrace Q4 2022 Earnings Report
Dynatrace demonstrated strong financial performance, achieving significant ARR growth and crossing the $1 billion mark in annualized revenue.
Key Takeaways
Dynatrace reported strong fourth-quarter results for fiscal year 2022, with adjusted ARR growth of 35% year-over-year. The company surpassed $1 billion in annualized revenue and maintained profitability and free cash flow.
Total ARR reached $995 million, with adjusted ARR growth of 35% year-over-year.
Total revenue was $253 million, representing a 31% increase on a constant currency basis.
Subscription revenue amounted to $235 million, up 31% on a constant currency basis.
GAAP EPS was $0.00 and non-GAAP EPS was $0.17 on a dilutive basis.
Dynatrace
Dynatrace
Dynatrace Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
Dynatrace issued guidance for the first quarter and full year of fiscal 2023, with growth rates compared to the first quarter and full year of fiscal 2022.
Positive Outlook
- Total ARR is expected to be between $1.25 billion and $1.265 billion.
- Total revenue is projected to be between $261 million and $263.5 million.
- Subscription revenue is anticipated to be between $244.5 million and $246.5 million.
- Non-GAAP operating income is forecasted to be between $60 million and $62 million.
- Non-GAAP net income per diluted share is expected to be between $0.17 and $0.18.
Challenges Ahead
- The U.S. dollar has continued to strengthen, resulting in a foreign exchange headwind.
- Suspension of business in Russia and Belarus will result in a headwind of approximately $6 million on ARR and revenue for fiscal 2023.
- Growth rates for Adjusted ARR, Total revenue, and Subscription revenue are presented in constant currency to provide better visibility into the underlying growth of the business.
- Reconciliation of non-GAAP operating income, non-GAAP net income, non-GAAP net income per share and free cash flow guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis.
- Variability of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards are expected to have a significant, and potentially unpredictable, impact on future GAAP financial results.