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Mar 31, 2023
Dynatrace Q4 2023 Earnings Report
Dynatrace demonstrated strong performance, exceeding expectations with robust fourth-quarter results, driven by the increasing demand for observability solutions amid cloud migration and digital transformation initiatives.
Key Takeaways
Dynatrace reported a strong fourth quarter, exceeding expectations. Total ARR reached $1,247 million, with adjusted ARR growth of 29% year-over-year. Total revenue was $314 million, up 27% on a constant currency basis, and subscription revenue was $293 million, up 28% on a constant currency basis. GAAP EPS was $0.27, and non-GAAP EPS was $0.31.
Total ARR reached $1,247 million, with adjusted ARR growth of 29% year-over-year.
Total revenue was $314 million, up 27% on a constant currency basis.
Subscription revenue was $293 million, up 28% on a constant currency basis.
GAAP EPS was $0.27, and non-GAAP EPS was $0.31.
Dynatrace
Dynatrace
Dynatrace Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
Dynatrace is issuing guidance for the first quarter and full year fiscal 2024. The total foreign exchange tailwind for fiscal 2024 is expected to be approximately $10 million on ARR and $13 million on revenue.
Positive Outlook
- First Quarter Fiscal 2024 ARR: $1,475 - $1,490 million (As reported: 18% - 20% growth)
- First Quarter Fiscal 2024 Total Revenue: $325 - $328 million (As reported: 22% - 23% growth)
- First Quarter Fiscal 2024 Subscription Revenue: $306 - $309 million (As reported: 23% - 24% growth)
- First Quarter Fiscal 2024 Non-GAAP Operating Income: $76.5 - $78.5 million
- First Quarter Fiscal 2024 Non-GAAP Net Income per Diluted Share: $0.22
Challenges Ahead
- Full Year Fiscal 2024 Free cash flow margin: -22%
- First Quarter Fiscal 2024 Constant currency ARR: 18% - 19%
- First Quarter Fiscal 2024 Constant currency Total revenue: 22% - 23%
- First Quarter Fiscal 2024 Constant currency Subscription revenue: 23% - 24%
- First Quarter Fiscal 2024 Free cash flow: -$303 - $312
Revenue & Expenses
Visualization of income flow from segment revenue to net income