Delivers ARR growth of 18% year-over-year on
a constant currency basis
Subscription Revenue growth of 21% on a
constant currency basis
Achieves GAAP Operating Margin of 11% and
Non-GAAP Operating Margin of 30%
Dynatrace (NYSE: DT) today announced financial results for the
third quarter of fiscal 2025 ended December 31, 2024.
"Our third quarter results exceeded guidance across all key
operating metrics," said Rick McConnell, Chief Executive Officer of
Dynatrace. "The explosion of data, along with its complexity,
combined with the unprecedented requirements for speed and scale,
are making modern digital ecosystems unmanageable. In a world where
generative and now agentic AI workloads are ramping, the
observability market has become mission critical for organizations
to ensure high business resiliency and deliver exceptional customer
experiences. Our leading AI-powered observability platform,
combined with our ongoing innovation, provide us with a powerful
advantage to capture the opportunity ahead."
Third Quarter Fiscal 2025 Financial and Other Recent Business
Highlights:
All growth rates are compared to the third quarter of fiscal
2024, unless otherwise noted.
Financial Highlights:
- ARR of $1,647 million, an increase of 16%, or 18% on a constant
currency basis
- Total Revenue of $436 million, an increase of 19%, or 20% on a
constant currency basis
- Subscription Revenue of $417 million, an increase of 20%, or
21% on a constant currency basis
- GAAP Income from Operations of $47 million and Non-GAAP Income
from Operations of $131 million
- GAAP EPS of $1.191 and Non-GAAP EPS of $0.37, both on a
dilutive basis
Business Highlights:
- Industry recognition: Dynatrace received the following
recognitions by third-party industry analysts:
- Named a Leader in both the Cloud-Native Observability and
Security Quadrants in the 2024 ISG Provider Lens, Multi Public
Cloud Solutions Report, for competitive strength and portfolio
attractiveness.
- Recognized as a Leader in the inaugural 2024 GigaOm Radar
Report for Kubernetes Observability.
- Partner evolution: Dynatrace was named the 2024 AWS EMEA
technology partner of the year for helping customers innovate
faster, reduce costs and be more agile through cloud migration and
modernization programs. In addition, Dynatrace became a member of
the Microsoft Intelligent Security Association (MISA) based on our
powerful integration with Microsoft’s SIEM solution, Microsoft
Sentinel.
- Sustainability progress: We published our second annual
Sustainability Report, which discusses our progress on
environmental, social, and governance topics that are important to
Dynatrace stakeholders. The report is posted on our website at
www.dynatrace.com/company/sustainability/ and highlights third
party limited assurance/verification of our fiscal year 2024
greenhouse gas emissions data, our new Global Inclusion Council,
AI-related governance developments, and more.
Share Repurchase Program
- During the third quarter, Dynatrace spent $40 million to
repurchase 732,000 shares at an average price of $54.64 under its
$500 million share repurchase program. From the inception of the
program in May 2024 through December 31, 2024, Dynatrace has
repurchased 2.7 million shares for $130 million at an average price
of $48.89.
________________________________
1 During the third quarter, Dynatrace
completed an intra-entity asset transfer of the global economic
rights of intellectual property (IP) from a wholly-owned U.S.
subsidiary to a wholly-owned Swiss subsidiary, more closely
aligning IP rights with business operations. The transfer generated
an income tax benefit of $320.9 million, or $1.06 per share on a
dilutive basis.
Third Quarter 2025 Financial
Highlights
(Unaudited – In thousands,
except per share data)
Three Months Ended December
31,
2024
2023
Key Operating Metric:
Annual recurring revenue (ARR)
$
1,647,412
$
1,425,284
Year-over-Year Increase
16
%
Year-over-Year Increase - constant
currency (*)
18
%
Revenue:
Total revenue
$
436,169
$
365,096
Year-over-Year Increase
19
%
Year-over-Year Increase - constant
currency (*)
20
%
Subscription revenue
$
417,207
$
348,294
Year-over-Year Increase
20
%
Year-over-Year Increase - constant
currency (*)
21
%
GAAP Financial Measures:
GAAP income from operations
$
47,464
$
35,720
GAAP operating margin
11
%
10
%
GAAP net income (**)
$
361,752
$
42,691
GAAP net income per share - diluted
(**)
$
1.19
$
0.14
GAAP shares outstanding - diluted
303,467
299,246
Net cash provided by operating
activities
$
42,238
$
75,657
Non-GAAP Financial Measures
(*):
Non-GAAP income from operations
$
130,734
$
104,636
Non-GAAP operating margin
30
%
29
%
Non-GAAP net income
$
111,679
$
96,184
Non-GAAP net income per share -
diluted
$
0.37
$
0.32
Non-GAAP shares outstanding - diluted
303,467
299,246
Free cash flow
$
37,569
$
67,357
* For additional information, please see
the "Non-GAAP Financial Measures" and "Definitions - Non-GAAP and
Other Metrics" sections of this press release.
** For additional information, please see
note 1 above.
Financial Outlook
Based on information available as of January 30, 2025, Dynatrace
is issuing guidance for the fourth quarter and increasing its
previous guidance for full year fiscal 2025 in the table below.
This guidance reflects foreign exchange rates as of December 31,
2024. We now expect foreign exchange to be a headwind of
approximately $38 million on ARR and approximately $17 million on
revenue for fiscal 2025 compared to ARR and revenue at constant
currency. Given recent strengthening of the U.S. dollar, this
represents an incremental headwind of approximately $28 million to
ARR and $10 million to revenue. This guidance also excludes the
impact of any share repurchases during the fourth quarter of fiscal
2025.
Growth rates for ARR, Total revenue, and Subscription revenue
are presented in constant currency to provide better visibility
into the underlying growth of the business.
All growth rates below are compared to the fourth quarter and
full year of fiscal 2024.
(In millions, except per share data)
Q4 Fiscal 2025
Guidance
Total revenue
$432 - $437
As reported
13% - 15%
Constant currency
16% - 17%
Subscription revenue
$410 - $415
As reported
14% - 15%
Constant currency
17% - 18%
Non-GAAP income from operations
$104 - $110
Non-GAAP operating margin
24% - 25%
Non-GAAP net income
$88 - $93
Non-GAAP net income per diluted share
$0.29 - $0.31
Diluted weighted average shares
outstanding
304 - 305
(In millions, except per share data)
Current Guidance
Fiscal 2025
Prior Guidance
Fiscal 2025*
Guidance Change
at Midpoint**
ARR
$1,705 - $1,715
$1,720 - $1,735
$(18)
As reported
13% - 14%
14% - 15%
(100) bps
Constant currency
16% - 16.5%
15% - 16%
75 bps
Total revenue
$1,686 - $1,691
$1,665 - $1,675
$19
As reported
18%
16% - 17%
150 bps
Constant currency
19%
17% - 18%
150 bps
Subscription revenue
$1,609 - $1,614
$1,590 - $1,600
$17
As reported
18% - 19%
17% - 18%
100 bps
Constant currency
20%
17% - 18%
250 bps
Non-GAAP income from operations
$480 - $486
$466 - $474
$13
Non-GAAP operating margin
28.5% - 28.75%
28% - 28.25%
50 bps
Non-GAAP net income
$412 - $417
$396 - $404
$15
Non-GAAP net income per diluted share
$1.36 - $1.37
$1.31 - $1.33
$0.05
Diluted weighted average shares
outstanding
303 - 304
303 - 305
(1)
Free cash flow
$415 - $420
$393 - $404
$19
Free cash flow margin
25%
23.5% - 24%
125 bps
*Prior guidance was issued on November 7,
2024.
**Guidance change at midpoint rounded to
the nearest million.
Conference Call and Webcast Information
Dynatrace will host a conference call and live webcast to
discuss its results and business outlook for investors and analysts
at 8:00 a.m. Eastern Time today, January 30, 2025. To access the
conference call from the U.S. and Canada, dial (866) 405-1247, or
internationally, dial (201) 689-8045 with conference ID# 13750856.
The call will also be available live via webcast on the company’s
website, ir.dynatrace.com.
An audio replay of the call will also be available until 11:59
p.m. Eastern Time on April 30, 2025, by dialing (877) 660-6853 from
the U.S. and Canada, or for international callers by dialing (201)
612-7415 and entering conference ID# 13750856. In addition, an
archived webcast will be available at ir.dynatrace.com.
We announce material financial information to our investors
using our Investor Relations website, press releases, SEC filings
and public conference calls and webcasts. We also use these
channels to disclose information about the company, our planned
financial and other announcements, attendance at upcoming investor
and industry conferences, and for complying with our disclosure
obligations under Regulation FD.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in
accordance with GAAP, this press release and the accompanying
tables contain certain non-GAAP financial measures as defined by
Regulation G, including non-GAAP income from operations, non-GAAP
operating margin, non-GAAP net income, non-GAAP net income per
diluted share, and free cash flow. We also use or discuss non-GAAP
financial measures in conference calls, slide presentations and
webcasts.
We use these non-GAAP financial measures for financial and
operational decision-making purposes, and as a means to evaluate
period-to-period comparisons and liquidity. We believe that these
non-GAAP financial measures provide useful information about our
operating results, enhance the overall understanding of past
financial performance and allow for greater transparency with
respect to metrics used by our management in its financial and
operational decision-making.
The presentation of the non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP. Our non-GAAP financial measures may not
provide information that is directly comparable to similarly titled
metrics provided by other companies.
Non-GAAP financial measures are defined in this press release
and the tables included in this press release include
reconciliations of historical non-GAAP financial measures to their
most directly comparable GAAP measures.
We also include non-GAAP financial measures in our financial
outlook included in this press release. Reconciliations of
forward-looking non-GAAP income from operations, non-GAAP net
income, non-GAAP net income per diluted share, and free cash flow
guidance to the most directly comparable GAAP measures are not
available without unreasonable efforts due to the high variability,
complexity, and low visibility with respect to the charges excluded
from these non-GAAP measures; in particular, the measures and
effects of share-based compensation expense, employer taxes and tax
deductions specific to equity compensation awards that are directly
impacted by future hiring, turnover and retention needs, as well as
unpredictable fluctuations in our stock price. We expect the
variability of the above charges to have a significant, and
potentially unpredictable, impact on our future GAAP financial
results.
Definitions - Non-GAAP and Other Metrics
Annual Recurring Revenue (ARR) is defined as the daily
revenue of all subscription agreements that are actively generating
revenue as of the last day of the reporting period multiplied by
365. We exclude from our calculation of ARR any revenues derived
from month-to-month agreements and/or product usage overage
billings.
Constant Currency amounts for ARR, Total Revenue and
Subscription Revenue are presented to provide a framework for
assessing how our underlying businesses performed excluding the
effect of foreign exchange rate fluctuations. To present this
information, current and comparative prior period results for
entities reporting in currencies other than United States dollars
are converted into United States dollars using the average exchange
rates from the comparative period rather than the actual exchange
rates in effect during the respective periods. All growth
comparisons relate to the corresponding period in the last fiscal
year.
Non-GAAP Income from Operations is defined as GAAP income
from operations adjusted for the following items: share-based
compensation; employer payroll taxes on employee stock
transactions; amortization of intangibles; transaction,
restructuring and other non-recurring or unusual items that may
arise from time to time. The related margin is non-GAAP income from
operations expressed as a percentage of total revenue.
Non-GAAP Net Income is defined as GAAP net income
adjusted for the following items: income tax expense/benefit;
non-GAAP effective cash taxes; net interest expense and income; net
cash received from and paid for interest; share-based compensation;
employer payroll taxes on employee stock transactions, amortization
of intangibles; gains and losses on currency translation; and
transaction, restructuring and other non-recurring or unusual items
that may arise from time to time. Non-GAAP net income per diluted
share is calculated as non-GAAP net income divided by the diluted
weighted average shares outstanding used to compute GAAP net income
per diluted share.
Free Cash Flow is defined as the net cash provided by or
used in operating activities less capital expenditures, reflected
as purchase of property and equipment and capitalized software
additions in our financial statements. The related margin is free
cash flow expressed as a percentage of total revenue.
About Dynatrace
Dynatrace exists to make the world's software work perfectly.
Our end-to-end platform combines broad and deep observability and
continuous runtime application security with Davis® hypermodal AI
to provide answers and intelligent automation from data at an
enormous scale. This enables innovators to modernize and automate
cloud operations, deliver software faster and more securely, and
ensure flawless digital experiences. That's why the world's largest
organizations trust the Dynatrace® platform to accelerate digital
transformation.
Cautionary Language Concerning Forward-Looking
Statements
This press release includes certain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements related to benefits that we believe
organizations receive from using Dynatrace and our financial and
business outlook, including our financial guidance for the fourth
quarter and full year of fiscal 2025. These forward-looking
statements include, but are not limited to, plans, objectives,
expectations and intentions and other statements contained in this
press release that are not historical facts and statements
identified by words such as “will,” “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “estimates” or words of
similar meaning. These forward-looking statements reflect our
current views about our plans, intentions, expectations, strategies
and prospects, which are based on the information currently
available to us and on assumptions we have made. Although we
believe that our plans, intentions, expectations, strategies and
prospects as reflected in or suggested by those forward-looking
statements are reasonable, we can give no assurance that the plans,
intentions, expectations or strategies will be attained or
achieved. Furthermore, actual results may differ materially from
those described in the forward-looking statements and will be
affected by a variety of risks and factors that are beyond our
control including, without limitation, our ability to maintain our
revenue growth rates in future periods; market adoption of our
product offerings; continued demand for, and spending on, our
solutions; our ability to innovate and develop solutions that meet
customer needs, including through Davis AI; the ability of our
platform and solutions to effectively interoperate with customers’
IT infrastructures; our ability to acquire new customers and retain
and expand our relationships with existing customers; our ability
to expand our sales and marketing capabilities; our ability to
compete; our ability to maintain successful relationships with
partners; security breaches, other security incidents and any real
or perceived errors, failures, defects or vulnerabilities in our
solutions; our ability to protect our intellectual property; our
ability to hire and retain necessary qualified employees to grow
our business and expand our operations; our ability to successfully
complete acquisitions and to integrate newly acquired businesses
and offerings; the effect on our business of the macroeconomic
environment, associated global economic conditions and geopolitical
disruption; and other risks set forth under the caption “Risk
Factors” in our Annual Report on Form 10-K, subsequent Quarterly
Reports on Form 10-Q, and our other SEC filings. We assume no
obligation to update any forward-looking statements contained in
this document as a result of new information, future events or
otherwise.
DYNATRACE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited – In thousands,
except per share data)
Three Months Ended
December 31,
Nine Months Ended
December 31,
2024
2023
2024
2023
Revenue:
Subscription
$
417,207
$
348,294
$
1,198,593
$
999,245
Service
18,962
16,802
54,925
50,437
Total revenue
436,169
365,096
1,253,518
1,049,682
Cost of revenue:
Cost of subscription
60,666
46,888
170,034
134,584
Cost of service
18,139
16,744
52,536
47,961
Amortization of acquired technology
3,756
4,237
12,528
12,035
Total cost of revenue
82,561
67,869
235,098
194,580
Gross profit
353,608
297,227
1,018,420
855,102
Operating expenses:
Research and development
98,343
80,102
281,287
220,468
Sales and marketing
154,472
132,723
443,802
385,445
General and administrative
49,354
43,231
143,285
127,074
Amortization of other intangibles
3,975
5,451
13,527
16,838
Total operating expenses
306,144
261,507
881,901
749,825
Income from operations
47,464
35,720
136,519
105,277
Interest income, net
11,726
10,605
37,351
26,260
Other expense, net
(2,072
)
(3,901
)
(6,145
)
(6,724
)
Income before income taxes
57,118
42,424
167,725
124,813
Income tax benefit (expense)
304,634
267
276,655
(8,125
)
Net income
$
361,752
$
42,691
$
444,380
$
116,688
Net income per share:
Basic
$
1.21
$
0.14
$
1.49
$
0.40
Diluted
$
1.19
$
0.14
$
1.47
$
0.39
Weighted average shares outstanding:
Basic
298,646
294,869
298,049
293,295
Diluted
303,467
299,246
302,815
298,335
UNAUDITED SHARE-BASED
COMPENSATION
Three Months Ended
December 31,
Nine Months Ended
December 31,
2024
2023
2024
2023
Cost of revenue
$
9,821
$
6,975
$
27,265
$
19,660
Research and development
26,582
18,678
74,769
50,119
Sales and marketing
20,709
15,947
57,481
48,823
General and administrative
15,027
13,222
41,984
34,696
Total share-based compensation
$
72,139
$
54,822
$
201,499
$
153,298
DYNATRACE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
and per share data)
December 31, 2024
March 31, 2024
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
907,482
$
778,983
Short-term investments
100,225
57,891
Accounts receivable, net
391,578
602,739
Deferred commissions, current
102,811
98,935
Prepaid expenses and other current
assets
73,130
66,749
Total current assets
1,575,226
1,605,297
Long-term investments
46,260
46,350
Property and equipment, net
49,426
53,325
Operating lease right-of-use assets,
net
66,666
61,390
Goodwill
1,335,386
1,335,494
Intangible assets, net
23,351
50,995
Deferred tax assets, net
514,838
138,836
Deferred commissions, non-current
88,237
93,310
Other assets
35,715
24,782
Total assets
$
3,735,105
$
3,409,779
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable
$
8,552
$
21,410
Accrued expenses, current
213,130
233,675
Deferred revenue, current
812,892
987,953
Operating lease liabilities, current
13,995
15,513
Total current liabilities
1,048,569
1,258,551
Deferred revenue, non-current
54,940
62,308
Accrued expenses, non-current
16,533
18,404
Operating lease liabilities,
non-current
61,216
54,013
Deferred tax liabilities
563
1,013
Total liabilities
1,181,821
1,394,289
Shareholders' equity:
Common shares, $0.001 par value,
600,000,000 shares authorized, 299,343,079 and 296,962,547 shares
issued and outstanding at December 31, 2024 and March 31, 2024,
respectively
299
297
Additional paid-in capital
2,340,470
2,249,349
Retained earnings (accumulated
deficit)
245,623
(198,757
)
Accumulated other comprehensive loss
(33,108
)
(35,399
)
Total shareholders' equity
2,553,284
2,015,490
Total liabilities and shareholders'
equity
$
3,735,105
$
3,409,779
DYNATRACE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited – In
thousands)
Nine Months Ended
December 31,
2024
2023
Cash flows from operating
activities:
Net income
$
444,380
$
116,688
Adjustments to reconcile net income to
cash provided by operations:
Depreciation
13,851
11,781
Amortization
27,603
29,067
Share-based compensation
201,499
153,298
Deferred income taxes
(378,795
)
(49,579
)
Other
4,135
7,016
Net change in operating assets and
liabilities:
Accounts receivable
204,251
83,444
Deferred commissions
(3,035
)
874
Prepaid expenses and other assets
(21,573
)
(27,437
)
Accounts payable and accrued expenses
(27,608
)
(24,022
)
Operating leases, net
434
1,253
Deferred revenue
(168,513
)
(55,946
)
Net cash provided by operating
activities
296,629
246,437
Cash flows from investing
activities:
Purchase of property and equipment
(11,540
)
(16,662
)
Capitalized software additions
—
(4,655
)
Acquisition of a business, net of cash
acquired
(100
)
(32,297
)
Purchases of investments
(107,989
)
—
Proceeds from sales and maturities of
investments
68,145
—
Net cash used in investing activities
(51,484
)
(53,614
)
Cash flows from financing
activities:
Payments of deferred consideration related
to capitalized software additions
(1,656
)
—
Proceeds from employee stock purchase
plan
21,159
19,472
Proceeds from exercise of stock
options
14,903
24,205
Repurchases of common stock
(130,100
)
—
Taxes paid related to net share settlement
of equity awards
(16,338
)
—
Net cash (used in) provided by financing
activities
(112,032
)
43,677
Effect of exchange rates on cash and cash
equivalents
(4,614
)
(9,199
)
Net increase in cash and cash
equivalents
128,499
227,301
Cash and cash equivalents, beginning of
period
778,983
555,348
Cash and cash equivalents, end of
period
$
907,482
$
782,649
DYNATRACE, INC.
GAAP to Non-GAAP
Reconciliations
(Unaudited - In thousands,
except percentages)
Three Months Ended December
31, 2024
GAAP
Share-based
compensation
Employer payroll taxes on
employee stock transactions
Amortization of
intangibles
Transaction, restructuring,
and other
Non-GAAP
Non-GAAP income from
operations:
Cost of revenue
$
82,561
$
(9,821
)
$
(469
)
$
(3,756
)
$
—
$
68,515
Gross profit
353,608
9,821
469
3,756
—
367,654
Gross margin
81
%
84
%
Research and development
98,343
(26,582
)
(1,770
)
—
—
69,991
Sales and marketing
154,472
(20,709
)
(756
)
—
(106
)
132,901
General and administrative
49,354
(15,027
)
(299
)
—
34,028
Amortization of other intangibles
3,975
—
—
(3,975
)
—
—
Income from operations
47,464
72,139
3,294
7,731
106
130,734
Operating margin
11
%
30
%
Three Months Ended December
31, 2023
GAAP
Share-based
compensation
Employer payroll taxes on
employee stock transactions
Amortization of
intangibles
Transaction, restructuring,
and other
Non-GAAP
Non-GAAP income from
operations:
Cost of revenue
$
67,869
$
(6,975
)
$
(284
)
$
(4,237
)
$
—
$
56,373
Gross profit
297,227
6,975
284
4,237
—
308,723
Gross margin
81
%
85
%
Research and development
80,102
(18,678
)
(1,196
)
—
—
60,228
Sales and marketing
132,723
(15,947
)
(1,029
)
—
201
115,948
General and administrative
43,231
(13,222
)
(360
)
—
(1,738
)
27,911
Amortization of other intangibles
5,451
—
—
(5,451
)
—
—
Income from operations
$
35,720
$
54,822
$
2,869
$
9,688
$
1,537
$
104,636
Operating margin
10
%
29
%
DYNATRACE, INC.
GAAP to Non-GAAP
Reconciliations
(Unaudited - In thousands,
except per share data)
Three Months Ended December
31,
2024
2023
Non-GAAP net income:
Net income
$
361,752
$
42,691
Income tax benefit
(304,634
)
(267
)
Non-GAAP effective cash tax
(30,588
)
(18,516
)
Interest income, net
(11,726
)
(10,605
)
Cash received from interest, net
11,533
10,064
Share-based compensation
72,139
54,822
Employer payroll taxes on employee stock
transactions
3,294
2,869
Amortization of intangibles
7,731
9,688
Transaction, restructuring, and other
106
1,537
Loss on currency translation
2,072
3,901
Non-GAAP net income
$
111,679
$
96,184
Share count:
Weighted-average shares outstanding -
basic
298,646
294,869
Weighted-average shares outstanding -
diluted
303,467
299,246
Shares used in non-GAAP per share
calculations:
Weighted-average shares outstanding -
basic
298,646
294,869
Weighted-average shares outstanding -
diluted
303,467
299,246
Non-GAAP net income per share:
Net income per share - basic
$
1.21
$
0.14
Net income per share - diluted
$
1.19
$
0.14
Non-GAAP net income per share - basic
$
0.37
$
0.33
Non-GAAP net income per share -
diluted
$
0.37
$
0.32
Three Months Ended December
31,
2024
2023
Free cash flow:
Net cash provided by operating
activities
$
42,238
$
75,657
Purchase of property and equipment
(4,669
)
(3,645
)
Capitalized software additions
—
(4,655
)
Free cash flow
$
37,569
$
67,357
DYNATRACE, INC.
GAAP to Non-GAAP
Reconciliations
(Unaudited - In thousands,
except percentages)
Nine Months Ended December 31,
2024
GAAP
Share-based
compensation
Employer payroll taxes on
employee stock transactions
Amortization of
intangibles
Transaction, restructuring,
and other
Non-GAAP
Non-GAAP income from
operations:
Cost of revenue
$
235,098
$
(27,265
)
$
(1,786
)
$
(12,528
)
$
—
$
193,519
Gross profit
1,018,420
27,265
1,786
12,528
—
1,059,999
Gross margin
81
%
85
%
Research and development
281,287
(74,769
)
(5,484
)
—
(3
)
201,031
Sales and marketing
443,802
(57,481
)
(2,989
)
—
(106
)
383,226
General and administrative
143,285
(41,984
)
(1,215
)
—
3
100,089
Amortization of other intangibles
13,527
—
—
(13,527
)
—
—
Income from operations
$
136,519
$
201,499
$
11,474
$
26,055
$
106
$
375,653
Operating margin
11
%
30
%
Nine Months Ended December 31,
2023
GAAP
Share-based
compensation
Employer payroll taxes on
employee stock transactions
Amortization of
intangibles
Transaction, restructuring,
and other
Non-GAAP
Non-GAAP income from
operations:
Cost of revenue
$
194,580
$
(19,660
)
$
(1,516
)
$
(12,035
)
$
—
$
161,369
Gross profit
855,102
19,660
1,516
12,035
—
888,313
Gross margin
81
%
85
%
Research and development
220,468
(50,119
)
(4,391
)
—
—
165,958
Sales and marketing
385,445
(48,823
)
(3,341
)
—
399
333,680
General and administrative
127,074
(34,696
)
(1,125
)
—
(5,724
)
85,529
Amortization of other intangibles
16,838
—
—
(16,838
)
—
—
Income from operations
$
105,277
$
153,298
$
10,373
$
28,873
$
5,325
$
303,146
Operating margin
10
%
29
%
DYNATRACE, INC.
GAAP to Non-GAAP
Reconciliations
(Unaudited - In thousands,
except per share data)
Nine Months Ended December
31,
2024
2023
Non-GAAP net income:
Net income
$
444,380
$
116,688
Income tax (benefit) expense
(276,655
)
8,125
Non-GAAP effective cash tax
(88,538
)
(58,986
)
Interest income, net
(37,351
)
(26,260
)
Cash received from interest, net
36,151
24,556
Share-based compensation
201,499
153,298
Employer payroll taxes on employee stock
transactions
11,474
10,373
Amortization of intangibles
26,055
28,873
Transaction, restructuring, and other
106
5,325
Loss on currency translation
6,145
6,724
Non-GAAP net income
$
323,266
$
268,716
Share count:
Weighted-average shares outstanding -
basic
298,049
293,295
Weighted-average shares outstanding -
diluted
302,815
298,335
Shares used in non-GAAP per share
calculations:
Weighted-average shares outstanding -
basic
298,049
293,295
Weighted-average shares outstanding -
diluted
302,815
298,335
Non-GAAP net income per share:
Net income per share - basic
$
1.49
$
0.40
Net income per share - diluted
$
1.47
$
0.39
Non-GAAP net income per share - basic
$
1.08
$
0.92
Non-GAAP net income per share -
diluted
$
1.07
$
0.90
Nine Months Ended December
31,
2024
2023
Free cash flow:
Net cash provided by operating
activities
$
296,629
$
246,437
Purchase of property and equipment
(11,540
)
(16,662
)
Capitalized software additions
—
(4,655
)
Free cash flow
$
285,089
$
225,120
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250130713720/en/
Investors: Noelle Faris VP, Investor Relations
Noelle.Faris@dynatrace.com
Media Relations: Kristy Campbell VP, Brand and
Communications Kristy.Campbell@dynatrace.com
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