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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 30, 2025

DYNATRACE, INC.
(Exact name of Registrant as specified in its charter)
Delaware
001-39010
47-2386428
(State or other jurisdiction of
incorporation)
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
1601 Trapelo Road, Suite 116
Waltham,
Massachusetts02451
(Address of principal executive offices)
(Zip Code)
(781) 530-1000
Registrant's telephone number, including area code

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareDTNew York Stock Exchange

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o




Item 2.02. Results of Operations and Financial Conditions.
 
On January 30, 2025, Dynatrace, Inc. (the "Company") issued a press release announcing, and will hold a conference call to discuss, the Company's financial results and other information for the fiscal quarter ended December 31, 2024. The full text of the press release is furnished as Exhibit 99.1 to this report and incorporated into this Item 2.02 by reference.

The information in this Item 2.02 of this Report on Form 8-K and Exhibits 99.1 and 99.2 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.


Item 9.01. Financial Statements and Exhibits.
(d) Exhibits

Exhibit
No.		Description
99.1
99.2
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: January 30, 2025
DYNATRACE, INC.
By:/s/ James Benson
Name: James Benson
Title: Executive Vice President, Chief Financial Officer & Treasurer
  


EXHIBIT 99.1
g668054g46h82.jpg
Dynatrace Reports Third Quarter Fiscal Year 2025 Financial Results
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%

WALTHAM, Mass., January 30, 2025 - 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.
1During 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.
1

Third Quarter 2025 Financial Highlights
(Unaudited – In thousands, except per share data)
Three Months Ended December 31,
20242023
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 margin11 %10 %
GAAP net income (**)
$361,752 $42,691 
GAAP net income per share - diluted (**)
$1.19 $0.14 
GAAP shares outstanding - diluted303,467 299,246 
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 of this press release.



2

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.





3

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.

4

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.



5

DYNATRACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited – In thousands, except per share data)
Three Months Ended
December 31,		Nine Months Ended
December 31,
2024202320242023
Revenue:
Subscription$417,207 $348,294 $1,198,593 $999,245 
Service18,962 16,802 54,925 50,437 
Total revenue436,169 365,096 1,253,518 1,049,682 
Cost of revenue:
Cost of subscription60,666 46,888 170,034 134,584 
Cost of service18,139 16,744 52,536 47,961 
Amortization of acquired technology3,756 4,237 12,528 12,035 
Total cost of revenue82,561 67,869 235,098 194,580 
Gross profit353,608 297,227 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 administrative49,354 43,231 143,285 127,074 
Amortization of other intangibles3,975 5,451 13,527 16,838 
Total operating expenses306,144 261,507 881,901 749,825 
Income from operations47,464 35,720 136,519 105,277 
Interest income, net11,726 10,605 37,351 26,260 
Other expense, net(2,072)(3,901)(6,145)(6,724)
Income before income taxes57,118 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:
Basic298,646 294,869 298,049 293,295 
Diluted303,467 299,246 302,815 298,335 
UNAUDITED SHARE-BASED COMPENSATION
Three Months Ended
December 31,		Nine Months Ended
December 31,
2024202320242023
Cost of revenue$9,821 $6,975 $27,265 $19,660 
Research and development26,582 18,678 74,769 50,119 
Sales and marketing20,709 15,947 57,481 48,823 
General and administrative15,027 13,222 41,984 34,696 
Total share-based compensation$72,139 $54,822 $201,499 $153,298 
6

DYNATRACE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
December 31, 2024March 31, 2024
(unaudited)
Assets
Current assets:
Cash and cash equivalents$907,482 $778,983 
Short-term investments100,225 57,891 
Accounts receivable, net391,578 602,739 
Deferred commissions, current102,811 98,935 
Prepaid expenses and other current assets73,130 66,749 
Total current assets1,575,226 1,605,297 
Long-term investments46,260 46,350 
Property and equipment, net49,426 53,325 
Operating lease right-of-use assets, net66,666 61,390 
Goodwill1,335,386 1,335,494 
Intangible assets, net23,351 50,995 
Deferred tax assets, net514,838 138,836 
Deferred commissions, non-current88,237 93,310 
Other assets35,715 24,782 
Total assets$3,735,105 $3,409,779 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable$8,552 $21,410 
Accrued expenses, current213,130 233,675 
Deferred revenue, current812,892 987,953 
Operating lease liabilities, current13,995 15,513 
Total current liabilities1,048,569 1,258,551 
Deferred revenue, non-current54,940 62,308 
Accrued expenses, non-current16,533 18,404 
Operating lease liabilities, non-current61,216 54,013 
Deferred tax liabilities563 1,013 
Total liabilities1,181,821 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 capital2,340,470 2,249,349 
Retained earnings (accumulated deficit)245,623 (198,757)
Accumulated other comprehensive loss(33,108)(35,399)
Total shareholders' equity2,553,284 2,015,490 
Total liabilities and shareholders' equity$3,735,105 $3,409,779 
7

DYNATRACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited – In thousands)
Nine Months Ended
December 31,
20242023
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 investments68,145 — 
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 options14,903 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 equivalents128,499 227,301 
Cash and cash equivalents, beginning of period778,983 555,348 
Cash and cash equivalents, end of period$907,482 $782,649 
8

DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except percentages)
Three Months Ended December 31, 2024
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$82,561 $(9,821)$(469)$(3,756)$— $68,515 
Gross profit353,608 9,821 469 3,756 — 367,654 
Gross margin81 %84 %
Research and development98,343 (26,582)(1,770)— — 69,991 
Sales and marketing154,472 (20,709)(756)— (106)132,901 
General and administrative49,354 (15,027)(299)— 34,028 
Amortization of other intangibles3,975 — — (3,975)— — 
Income from operations47,464 72,139 3,294 7,731 106 130,734 
Operating margin11 %30 %

Three Months Ended December 31, 2023
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$67,869 $(6,975)$(284)$(4,237)$— $56,373 
Gross profit297,227 6,975 284 4,237 — 308,723 
Gross margin81 %85 %
Research and development80,102 (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 intangibles5,451 — — (5,451)— — 
Income from operations$35,720 $54,822 $2,869 $9,688 $1,537 $104,636 
Operating margin10 %29 %





9


DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Three Months Ended December 31,
20242023
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, net11,533 10,064 
Share-based compensation72,139 54,822 
Employer payroll taxes on employee stock transactions3,294 2,869 
Amortization of intangibles7,731 9,688 
Transaction, restructuring, and other106 1,537 
Loss on currency translation2,072 3,901 
Non-GAAP net income$111,679 $96,184 
Share count:
Weighted-average shares outstanding - basic298,646 294,869 
Weighted-average shares outstanding - diluted303,467 299,246 
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic298,646 294,869 
Weighted-average shares outstanding - diluted303,467 299,246 
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,
20242023
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 
10

DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except percentages)
Nine Months Ended December 31, 2024
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$235,098 $(27,265)$(1,786)$(12,528)$— $193,519 
Gross profit1,018,420 27,265 1,786 12,528 — 1,059,999 
Gross margin81 %85 %
Research and development281,287 (74,769)(5,484)— (3)201,031 
Sales and marketing443,802 (57,481)(2,989)— (106)383,226 
General and administrative143,285 (41,984)(1,215)— 3 100,089 
Amortization of other intangibles13,527 — — (13,527)— — 
Income from operations$136,519 $201,499 $11,474 $26,055 $106 $375,653 
Operating margin11 %30 %

Nine Months Ended December 31, 2023
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$194,580 $(19,660)$(1,516)$(12,035)$— $161,369 
Gross profit855,102 19,660 1,516 12,035 — 888,313 
Gross margin81 %85 %
Research and development220,468 (50,119)(4,391)— — 165,958 
Sales and marketing385,445 (48,823)(3,341)— 399 333,680 
General and administrative127,074 (34,696)(1,125)— (5,724)85,529 
Amortization of other intangibles16,838 — — (16,838)— — 
Income from operations$105,277 $153,298 $10,373 $28,873 $5,325 $303,146 
Operating margin10 %29 %



11

DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Nine Months Ended December 31,
20242023
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, net36,151 24,556 
Share-based compensation201,499 153,298 
Employer payroll taxes on employee stock transactions11,474 10,373 
Amortization of intangibles26,055 28,873 
Transaction, restructuring, and other106 5,325 
Loss on currency translation6,145 6,724 
Non-GAAP net income$323,266 $268,716 
Share count:
Weighted-average shares outstanding - basic298,049 293,295 
Weighted-average shares outstanding - diluted302,815 298,335 
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic298,049 293,295 
Weighted-average shares outstanding - diluted302,815 298,335 
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,
20242023
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 
12

Contacts

Investors:
Noelle Faris
VP, Investor Relations
Noelle.Faris@dynatrace.com

Media Relations:
Kristy Campbell
VP, Brand and Communications
Kristy.Campbell@dynatrace.com





13
v 1 Exhibit 99.2

 
v3.24.4
Document and Entity Information Document
Jan. 30, 2025
Entity Information [Line Items]  
Document Type 8-K
Entity Registrant Name DYNATRACE, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-39010
Entity Address, Address Line One 1601 Trapelo Road, Suite 116
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02451
City Area Code 781
Local Phone Number 530-1000
Entity Information, Former Legal or Registered Name Not Applicable
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol DT
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001773383
Amendment Flag false
Entity Tax Identification Number 47-2386428
Entity Address, City or Town Waltham,
Document Period End Date Jan. 30, 2025
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