02/01/2023 | Press release | Distributed by Public on 02/01/2023 05:52
Non-GAAP Financial Measures & Key Metrics |
In addition to disclosing financial measures prepared in accordance with GAAP, thes tables contain certain non-GAAP financial measures. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Dynatrace considers these non-GAAP financial measures to be important because they provide useful indicators of its performance and liquidity measures. These are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In addition, investors often use similar measures to evaluate the performance of a company. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating performance. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the consolidated financial statements. Dynatrace presents constant currency amounts for Revenue and Annual Recurring Revenue to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency 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. Dynatrace provides this non-GAAP financial information to aid investors in better understanding our performance. |
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 Total ARR any revenues derived from month-to-month agreements and/or product usage overage billings. |
Adjusted ARR is defined as ARR excluding the impact of foreign exchange rate fluctuations that occurred over the trailing twelve month period. This calculation also excludes the headwind associated with the Dynatrace® perpetual license ARR that rolled off in the trailing twelve month period. |
Adjusted ARR Growth is defined as year-over-year growth in Adjusted ARR divided by ARR as reported. |
Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures. |
Dynatrace, Inc. | ||||||||||||||
Historical Income Statements QTD | ||||||||||||||
(in thousands) | ||||||||||||||
FY 2021 | FY 2022 | FY 2023 | ||||||||||||
30-Jun-20 | 30-Sep-20 | 31-Dec-20 | 31-Mar-21 | 31-Mar-21 | 30-Jun-21 | 30-Sep-21 | 31-Dec-21 | 31-Mar-22 | 31-Mar-22 | 30-Jun-22 | 30-Sep-22 | 31-Dec-22 | ||
Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 YTD | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 YTD | Q1 2023 | Q2 2023 | Q3 2023 | TTM | |
Revenue: | ||||||||||||||
Subscription | 144,357 | 157,673 | 170,308 | 182,842 | 655,180 | 196,520 | 212,601 | 226,290 | 234,974 | 870,385 | 249,558 | 261,306 | 279,152 | 1,024,990 |
License | 638 | 442 | 257 | 109 | 1,446 | 50 | 0 | 2 | 2 | 54 | 0 | 0 | 0 | 2 |
Service | 10,513 | 10,471 | 12,346 | 13,553 | 46,883 | 13,170 | 13,753 | 14,474 | 17,609 | 59,006 | 17,715 | 18,020 | 18,304 | 71,648 |
Total revenue | 155,508 | 168,586 | 182,911 | 196,504 | 703,509 | 209,740 | 226,354 | 240,766 | 252,585 | 929,445 | 267,273 | 279,326 | 297,456 | 1,096,640 |
Cost of revenue: | ||||||||||||||
Cost of subscription | 16,706 | 18,327 | 20,382 | 22,073 | 77,488 | 24,982 | 27,135 | 28,284 | 31,245 | 111,646 | 32,738 | 35,764 | 36,891 | 136,638 |
Cost of service | 8,010 | 8,554 | 8,907 | 9,432 | 34,903 | 10,021 | 10,668 | 12,232 | 12,796 | 45,717 | 15,168 | 16,052 | 15,044 | 59,060 |
Amortization of acquired technology | 3,826 | 3,830 | 3,831 | 3,830 | 15,317 | 3,830 | 3,864 | 3,944 | 3,875 | 15,513 | 3,892 | 3,888 | 3,889 | 15,544 |
Total cost of revenue | 28,542 | 30,711 | 33,120 | 35,335 | 127,708 | 38,833 | 41,667 | 44,460 | 47,916 | 172,876 | 51,798 | 55,704 | 55,824 | 211,242 |
Gross profit | 126,966 | 137,875 | 149,791 | 161,169 | 575,801 | 170,907 | 184,687 | 196,306 | 204,669 | 756,569 | 215,475 | 223,622 | 241,632 | 885,398 |
Gross profit % | 82% | 82% | 82% | 82% | 82% | 81% | 82% | 82% | 81% | 81% | 81% | 80% | 81% | 81% |
Operating expenses: | ||||||||||||||
Research and development | 23,505 | 27,512 | 28,730 | 31,668 | 111,415 | 34,725 | 37,908 | 40,876 | 42,833 | 156,342 | 48,482 | 51,907 | 53,411 | 196,633 |
Sales and marketing | 49,163 | 56,690 | 64,829 | 74,805 | 245,487 | 80,482 | 86,301 | 94,033 | 101,300 | 362,116 | 105,015 | 104,669 | 111,524 | 422,508 |
General and administrative | 21,527 | 22,110 | 23,442 | 25,140 | 92,219 | 26,922 | 31,689 | 32,643 | 35,368 | 126,622 | 36,321 | 40,074 | 36,242 | 148,005 |
Amortization of other intangibles | 8,686 | 8,686 | 8,685 | 8,687 | 34,744 | 7,540 | 7,539 | 7,539 | 7,539 | 30,157 | 6,573 | 6,573 | 6,573 | 27,258 |
Restructuring and other | (21) | 46 | (2) | 17 | 40 | 26 | (1) | 0 | 0 | 25 | (10) | 0 | (5) | (15) |
Total operating expenses | 102,860 | 115,044 | 125,684 | 140,317 | 483,905 | 149,695 | 163,436 | 175,091 | 187,040 | 675,262 | 196,381 | 203,223 | 207,745 | 794,389 |
Income from operations | 24,106 | 22,831 | 24,107 | 20,852 | 91,896 | 21,212 | 21,251 | 21,215 | 17,629 | 81,307 | 19,094 | 20,399 | 33,887 | 91,009 |
Interest expense, net | (4,113) | (3,602) | (3,455) | (3,035) | (14,205) | (2,857) | (2,651) | (2,450) | (2,234) | (10,192) | (2,175) | (513) | (4,787) | (9,709) |
Other income (expense), net | 19 | 199 | 2,526 | (2,582) | 162 | 1,311 | (1,299) | (1,357) | 1,889 | 544 | (2,250) | (1,214) | 1,617 | 42 |
Income before income taxes | 20,012 | 19,428 | 23,178 | 15,235 | 77,853 | 19,666 | 17,301 | 17,408 | 17,284 | 71,659 | 14,669 | 18,672 | 30,717 | 81,342 |
Income tax (expense) benefit | (7,147) | (1,949) | (4,762) | 11,719 | (2,139) | (6,372) | 6,340 | (2,821) | (16,355) | (19,208) | (12,555) | (8,146) | (15,691) | (52,747) |
Net income | 12,865 | 17,479 | 18,416 | 26,954 | 75,714 | 13,294 | 23,641 | 14,587 | 929 | 52,451 | 2,114 | 10,526 | 15,026 | 28,595 |
Other comprehensive (loss) income: | ||||||||||||||
Foreign currency translation adjustment | (2,342) | (2,792) | (4,786) | 1,814 | (8,106) | (1,658) | 2,394 | 692 | (1,906) | (478) | 480 | 1,818 | (5,133) | (4,741) |
Total other comprehensive (loss) income | (2,342) | (2,792) | (4,786) | 1,814 | (8,106) | (1,658) | 2,394 | 692 | (1,906) | (478) | 480 | 1,818 | (5,133) | (4,741) |
Comprehensive income (loss) | 10,523 | 14,687 | 13,630 | 28,768 | 67,608 | 11,636 | 26,035 | 15,279 | (977) | 51,973 | 2,594 | 12,344 | 9,893 | 23,854 |
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Dynatrace, Inc. | |||||||||||
Historical Balance Sheets | |||||||||||
(in thousands) | |||||||||||
FY 2021 | FY 2022 | FY 2023 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |
June 2020(1) | September 2020(1) | December 2020(1) | March 2021 | June 2021 | September 2021 | December 2021 | March 2022 | June 2022 | September 2022 | December 2022 | |
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | 250,377 | 248,437 | 299,505 | 324,962 | 387,218 | 370,319 | 408,723 | 462,967 | 571,345 | 563,430 | 422,451 |
Accounts receivable, net | 93,763 | 110,251 | 200,849 | 242,079 | 134,003 | 149,801 | 264,293 | 350,666 | 191,836 | 185,728 | 304,411 |
Deferred commissions, current | 39,080 | 41,190 | 45,645 | 48,986 | 50,987 | 52,525 | 57,978 | 62,601 | 61,182 | 62,861 | 71,001 |
Prepaid expenses and other current assets | 76,568 | 79,113 | 46,356 | 64,255 | 65,838 | 80,065 | 81,326 | 72,188 | 35,439 | 39,259 | 33,034 |
Total Current assets | 459,788 | 478,991 | 592,355 | 680,282 | 638,046 | 652,710 | 812,320 | 948,422 | 859,802 | 851,278 | 830,897 |
Property and equipment, net | 33,673 | 33,920 | 35,384 | 36,916 | 37,841 | 40,197 | 41,984 | 45,271 | 45,782 | 45,717 | 50,528 |
Operating lease right of use asset, net | 44,209 | 42,571 | 43,530 | 42,959 | 48,338 | 60,473 | 59,306 | 58,849 | 53,369 | 61,374 | 68,730 |
Goodwill | 1,270,986 | 1,271,602 | 1,272,574 | 1,271,195 | 1,275,133 | 1,282,631 | 1,281,764 | 1,281,876 | 1,280,511 | 1,279,535 | 1,281,507 |
Other intangible assets, net | 188,717 | 175,789 | 162,882 | 149,484 | 137,993 | 128,514 | 117,908 | 105,736 | 95,008 | 84,380 | 74,073 |
Deferred tax assets, net | 8,126 | 11,395 | 12,205 | 16,811 | 17,012 | 16,492 | 16,390 | 28,106 | 26,368 | 24,958 | 23,726 |
Deferred commissions, non-current | 37,778 | 38,074 | 43,575 | 48,638 | 50,001 | 50,766 | 58,086 | 63,435 | 59,245 | 60,292 | 69,150 |
Other assets | 8,350 | 8,616 | 8,850 | 9,933 | 9,735 | 11,114 | 10,003 | 9,615 | 10,564 | 14,451 | 15,268 |
Total assets | 2,051,627 | 2,060,958 | 2,171,355 | 2,256,218 | 2,214,099 | 2,242,897 | 2,397,761 | 2,541,310 | 2,430,649 | 2,421,985 | 2,413,879 |
Liabilities and shareholders' equity | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable | 3,767 | 8,185 | 12,146 | 9,621 | 3,431 | 16,013 | 22,256 | 22,715 | 4,795 | 4,587 | 14,687 |
Accrued expenses, current | 76,191 | 85,782 | 106,072 | 119,527 | 98,955 | 105,423 | 116,154 | 141,556 | 114,214 | 129,976 | 154,081 |
Current portion of long term debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Deferred revenue, current | 352,803 | 349,541 | 424,001 | 509,272 | 486,066 | 461,443 | 563,045 | 688,554 | 617,969 | 561,474 | 647,259 |
Operating lease liabilities, current | 9,712 | 9,311 | 9,368 | 9,491 | 10,420 | 11,214 | 11,700 | 12,774 | 12,402 | 12,876 | 14,990 |
Payable to related party | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total current liabilities | 442,473 | 452,819 | 551,587 | 647,911 | 598,872 | 594,093 | 713,155 | 865,599 | 749,380 | 708,913 | 831,017 |
Deferred revenue, non-current | 49,580 | 44,647 | 47,849 | 47,504 | 33,683 | 22,630 | 30,937 | 25,783 | 16,352 | 16,950 | 25,778 |
Accrued expenses, non-current | 17,368 | 17,615 | 17,714 | 16,072 | 16,349 | 16,533 | 20,046 | 19,409 | 28,182 | 25,243 | 30,449 |
Operating lease liabilities, non-current | 38,970 | 37,817 | 38,829 | 38,203 | 42,823 | 54,371 | 52,976 | 52,070 | 46,682 | 54,255 | 59,589 |
Deferred tax liabilities, net | 0 | 0 | 0 | 1,014 | 1,014 | 1,361 | 1,217 | 85 | 0 | 0 | 23 |
Long term debt, net of current portion | 510,452 | 480,941 | 451,427 | 391,913 | 362,404 | 332,907 | 303,415 | 273,918 | 244,427 | 214,947 | 0 |
Total liabilities | 1,058,843 | 1,033,839 | 1,107,406 | 1,142,617 | 1,055,145 | 1,021,895 | 1,121,746 | 1,236,864 | 1,085,023 | 1,020,308 | 946,856 |
Shareholders' Equity: | |||||||||||
Common shares | 281 | 281 | 281 | 283 | 284 | 285 | 286 | 286 | 287 | 288 | 289 |
Additional paid-in capital | 1,589,598 | 1,609,246 | 1,632,446 | 1,653,328 | 1,687,044 | 1,723,056 | 1,762,789 | 1,792,197 | 1,830,782 | 1,874,488 | 1,929,940 |
Accumulated deficit | (576,648) | (559,169) | (540,753) | (513,799) | (500,505) | (476,864) | (462,277) | (461,348) | (459,234) | (448,708) | (433,682) |
Accumulated other comprehensive loss | (20,447) | (23,239) | (28,025) | (26,211) | (27,869) | (25,475) | (24,783) | (26,689) | (26,209) | (24,391) | (29,524) |
Total shareholders' equity | 992,784 | 1,027,119 | 1,063,949 | 1,113,601 | 1,158,954 | 1,221,002 | 1,276,015 | 1,304,446 | 1,345,626 | 1,401,677 | 1,467,023 |
Total liabilities and shareholders' equity | 2,051,627 | 2,060,958 | 2,171,355 | 2,256,218 | 2,214,099 | 2,242,897 | 2,397,761 | 2,541,310 | 2,430,649 | 2,421,985 | 2,413,879 |
(1)Prior periods have been updated from previously issued financial statements |
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Dynatrace, Inc. | |||||||||||||||
Historical Cash Flows | |||||||||||||||
(in thousands) | |||||||||||||||
FY 2021 | FY 2022 | FY 2023 | |||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1(1) | Q2(1) | Q3(1) | Q4 | FY | Q1 | Q2 | Q3 | TTM | ||
Cash flows from operating activities: | |||||||||||||||
Net income | 12,865 | 17,479 | 18,416 | 26,954 | 75,714 | 13,294 | 23,641 | 14,587 | 929 | 52,451 | 2,114 | 10,526 | 15,026 | 28,595 | |
Adjustments to reconcile net income to cash provided by operations: | |||||||||||||||
Depreciation | 1,590 | 2,207 | 2,792 | 2,433 | 9,022 | 2,475 | 2,574 | 2,739 | 2,850 | 10,638 | 2,798 | 2,948 | 3,266 | 11,862 | |
Amortization | 13,019 | 13,013 | 13,014 | 12,896 | 51,942 | 11,512 | 11,545 | 11,625 | 11,556 | 46,238 | 10,571 | 10,497 | 10,498 | 43,122 | |
Share-based compensation | 12,672 | 14,831 | 15,588 | 14,693 | 57,784 | 19,252 | 25,575 | 27,123 | 27,586 | 99,536 | 28,695 | 40,654 | 35,504 | 132,439 | |
Deferred income taxes | (175) | (2,985) | 146 | (4,022) | (7,036) | - 0 | - 0 | - 0 | (12,435) | (12,435) | - 0 | - 0 | - 0 | (12,435) | |
Loss on extinguishment of debt | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | 5,925 | 5,925 | |
Other | 466 | 336 | (2,042) | 3,085 | 1,845 | (796) | 1,806 | 1,896 | (1,386) | 1,520 | 2,748 | 1,736 | 687 | 3,785 | |
Net change in operating assets and liabilities: | - 0 | ||||||||||||||
Accounts receivable | 64,265 | (14,912) | (87,046) | (44,299) | (81,992) | 110,079 | (17,765) | (114,676) | (86,486) | (108,848) | 151,404 | 2,108 | (113,198) | (46,172) | |
Deferred commissions | 2,229 | (979) | (7,630) | (9,943) | (16,323) | (2,631) | (3,716) | (13,234) | (9,952) | (29,533) | 2,079 | (5,697) | (13,580) | (27,150) | |
Prepaid expenses and other assets | 275 | (5,219) | 30,864 | (20,251) | 5,669 | (1,453) | (15,003) | (1,052) | 9,400 | (8,108) | 33,096 | (7,968) | 4,488 | 39,016 | |
Accounts payable and accrued expenses | (23,212) | 15,350 | 22,753 | 11,701 | 26,592 | (27,376) | 18,258 | 20,105 | 24,959 | 35,946 | (29,815) | 15,387 | 33,793 | 44,324 | |
Operating leases, net | 311 | 212 | 76 | 132 | 731 | 131 | 270 | 282 | 670 | 1,353 | (142) | 186 | (80) | 634 | |
Deferred revenue | (47,297) | (15,492) | 66,785 | 92,492 | 96,488 | (41,015) | (28,889) | 111,449 | 120,614 | 162,159 | (60,450) | (40,979) | 79,633 | 98,818 | |
Net cash provided by operating activities | 37,008 | 23,841 | 73,716 | 85,871 | 220,436 | 83,472 | 18,296 | 60,844 | 88,305 | 250,917 | 143,098 | 29,398 | 61,962 | 322,763 | |
Cash flows from investing activities: | |||||||||||||||
Purchase of property and equipment | (4,418) | (1,982) | (2,468) | (5,208) | (14,076) | (2,954) | (4,658) | (4,156) | (5,927) | (17,695) | (6,906) | (4,331) | (4,388) | (21,552) | |
Acquisitions, net of cash acquired | - 0 | - 0 | - 0 | - 0 | - 0 | (3,543) | (9,461) | (191) | - 0 | (13,195) | - 0 | - 0 | - 0 | - 0 | |
Capitalized software additions | (131) | (53) | (64) | 445 | 197 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | |
Net cash used in investing activities | (4,549) | (2,035) | (2,532) | (4,763) | (13,879) | (6,497) | (14,119) | (4,347) | (5,927) | (30,890) | (6,906) | (4,331) | (4,388) | (21,552) | |
Cash flows from financing activities: | |||||||||||||||
Repayment of term loans | - 0 | (30,000) | (30,000) | (60,000) | (120,000) | (30,000) | (30,000) | (30,000) | (30,000) | (120,000) | (30,000) | (30,000) | (221,125) | (311,125) | |
Debt issuance costs | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | (1,949) | (1,949) | |
Proceeds from employee stock purchase plan | 3,592 | - 0 | 5,603 | - 0 | 9,195 | 6,593 | - 0 | 7,320 | - 0 | 13,913 | 8,627 | - 0 | 9,179 | 17,806 | |
Proceeds from exercise of stock options | - 0 | 4,829 | 2,020 | 6,203 | 13,052 | 7,886 | 10,453 | 5,311 | 1,839 | 25,489 | 1,275 | 3,057 | 10,770 | 16,941 | |
Equity repurchases | (13) | (12) | (11) | (13) | (49) | (14) | (16) | (21) | (15) | (66) | (11) | (4) | - 0 | (30) | |
Net cash provided by (used in) financing activities | 3,579 | (25,183) | (22,388) | (53,810) | (97,802) | (15,535) | (19,563) | (17,390) | (28,176) | (80,664) | (20,109) | (26,947) | (203,125) | (278,357) | |
Effect of exchange rates on cash and cash equivalents | 1,169 | 1,437 | 2,272 | (1,841) | 3,037 | 816 | (1,513) | (703) | 42 | (1,358) | (7,705) | (6,035) | 4,572 | (9,126) | |
Net increase (decrease) in cash and cash equivalents | 37,207 | (1,940) | 51,068 | 25,457 | 111,792 | 62,256 | (16,899) | 38,404 | 54,244 | 138,005 | 108,378 | (7,915) | (140,979) | 13,728 | |
Cash and cash equivalents, beginning of period | 213,170 | 250,377 | 248,437 | 299,505 | 213,170 | 324,962 | 387,218 | 370,319 | 408,723 | 324,962 | 462,967 | 571,345 | 563,430 | 408,723 | |
Cash and cash equivalents, end of period | 250,377 | 248,437 | 299,505 | 324,962 | 324,962 | 387,218 | 370,319 | 408,723 | 462,967 | 462,967 | 571,345 | 563,430 | 422,451 | 422,451 | |
Supplemental cash flow data: | |||||||||||||||
Cash paid for interest | 3,763 | 3,160 | 2,991 | 2,561 | 12,475 | 2,370 | 2,190 | 1,989 | 1,826 | 8,375 | 2,066 | 2,677 | 2,124 | 8,693 | |
Cash paid for (received from) tax | 10,127 | 12,418 | (37,017) | 7,135 | (7,337) | 7,306 | 5,076 | 7,848 | 4,017 | 24,247 | (31,542) | 7,975 | 3,232 | (16,318) | |
Non-cash financing activities: | |||||||||||||||
Transactions with related parties | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | |
Reclassification of related party payable upon reorganization | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | |
Modification of MIU Plan awards | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | |
(1)Prior period has been updated from previously issued financial statements |
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Dynatrace, Inc. | ||||||||||||||
GAAP to Non-GAAP Tables | ||||||||||||||
(in thousands) | ||||||||||||||
FY 2021 | FY 2022 | FY 2023 | ||||||||||||
Q1(1) | Q2(1) | Q3(1) | Q4(1) | FY | Q1(1) | Q2(1) | Q3(1) | Q4 | FY | Q1 | Q2 | Q3 | TTM | |
Revenue | 155,508 | 168,586 | 182,911 | 196,504 | 703,509 | 209,740 | 226,354 | 240,766 | 252,585 | 929,445 | 267,273 | 279,326 | 297,456 | 1,096,640 |
Share-based compensation | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | |
Employer payroll taxes on employee stock transactions | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | |
Amortization of other intangibles | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | |
Restructuring & other | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | |
Non-GAAP Revenue | 155,508 | 168,586 | 182,911 | 196,504 | 703,509 | 209,740 | 226,354 | 240,766 | 252,585 | 929,445 | 267,273 | 279,326 | 297,456 | 1,096,640 |
Cost of Revenue | 28,542 | 30,711 | 33,120 | 35,335 | 127,708 | 38,833 | 41,667 | 44,460 | 47,916 | 172,876 | 51,798 | 55,704 | 55,824 | 211,242 |
Share-based compensation | (1,498) | (1,866) | (2,066) | (1,877) | (7,307) | (2,652) | (3,485) | (3,405) | (3,321) | (12,863) | (3,890) | (5,235) | (4,285) | (16,731) |
Employer payroll taxes on employee stock transactions | (53) | (359) | (82) | (224) | (718) | (315) | (452) | (149) | (143) | (1,059) | (284) | (128) | (114) | (669) |
Amortization of other intangibles | (3,826) | (3,830) | (3,831) | (3,830) | (15,317) | (3,830) | (3,864) | (3,944) | (3,875) | (15,513) | (3,892) | (3,888) | (3,889) | (15,544) |
Restructuring & other | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | (350) | (30) | - 0 | (380) |
Non-GAAP Cost of Revenue | 23,165 | 24,656 | 27,141 | 29,404 | 104,366 | 32,036 | 33,866 | 36,962 | 40,577 | 143,441 | 43,382 | 46,423 | 47,536 | 177,918 |
Gross Profit | 126,966 | 137,875 | 149,791 | 161,169 | 575,801 | 170,907 | 184,687 | 196,306 | 204,669 | 756,569 | 215,475 | 223,622 | 241,632 | 885,398 |
Share-based compensation | 1,498 | 1,866 | 2,066 | 1,877 | 7,307 | 2,652 | 3,485 | 3,405 | 3,321 | 12,863 | 3,890 | 5,235 | 4,285 | 16,731 |
Employer payroll taxes on employee stock transactions | 53 | 359 | 82 | 224 | 718 | 315 | 452 | 149 | 143 | 1,059 | 284 | 128 | 114 | 669 |
Amortization of other intangibles | 3,826 | 3,830 | 3,831 | 3,830 | 15,317 | 3,830 | 3,864 | 3,944 | 3,875 | 15,513 | 3,892 | 3,888 | 3,889 | 15,544 |
Restructuring & other | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | 350 | 30 | - 0 | 380 |
Non-GAAP Gross Profit | 132,343 | 143,930 | 155,770 | 167,100 | 599,143 | 177,704 | 192,488 | 203,804 | 212,008 | 786,004 | 223,891 | 232,903 | 249,920 | 918,722 |
Research and Development | 23,505 | 27,512 | 28,730 | 31,668 | 111,415 | 34,725 | 37,908 | 40,876 | 42,833 | 156,342 | 48,482 | 51,907 | 53,411 | 196,633 |
Share-based compensation | (2,418) | (2,989) | (3,259) | (3,018) | (11,684) | (3,967) | (5,456) | (5,908) | (5,985) | (21,316) | (7,285) | (10,997) | (11,057) | (35,324) |
Employer payroll taxes on employee stock transactions | (98) | (592) | (288) | (378) | (1,356) | (627) | (500) | (493) | (259) | (1,879) | (549) | (381) | (329) | (1,518) |
Amortization of other intangibles | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Restructuring & other | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Non-GAAP Research and Development | 20,989 | 23,931 | 25,183 | 28,272 | 98,375 | 30,131 | 31,952 | 34,475 | 36,589 | 133,147 | 40,648 | 40,529 | 42,025 | 159,791 |
Sales and Marketing | 49,163 | 56,690 | 64,829 | 74,805 | 245,487 | 80,482 | 86,301 | 94,033 | 101,300 | 362,116 | 105,015 | 104,669 | 111,524 | 422,508 |
Share-based compensation | (5,405) | (6,122) | (6,480) | (6,146) | (24,153) | (7,608) | (9,612) | (9,267) | (9,470) | (35,957) | (10,076) | (13,938) | (13,385) | (46,869) |
Employer payroll taxes on employee stock transactions | (127) | (578) | (288) | (637) | (1,630) | (585) | (785) | (511) | (424) | (2,305) | (598) | (300) | (297) | (1,619) |
Amortization of other intangibles | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Restructuring & other | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Non-GAAP Sales and Marketing | 43,631 | 49,990 | 58,061 | 68,022 | 219,704 | 72,289 | 75,904 | 84,255 | 91,406 | 323,854 | 94,341 | 90,431 | 97,842 | 374,020 |
General and Administrative | 21,527 | 22,110 | 23,442 | 25,140 | 92,219 | 26,922 | 31,689 | 32,643 | 35,368 | 126,622 | 36,321 | 40,074 | 36,242 | 148,005 |
Share-based compensation | (3,351) | (3,854) | (3,783) | (3,652) | (14,640) | (5,025) | (7,022) | (8,543) | (8,810) | (29,400) | (7,444) | (10,484) | (6,777) | (33,515) |
Employer payroll taxes on employee stock transactions | (7) | (167) | (34) | (202) | (410) | (200) | (254) | (124) | (123) | (701) | (211) | (231) | (68) | (633) |
Amortization of other intangibles | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Restructuring & other | (1,559) | (1,339) | (500) | 42 | (3,356) | 47 | (1,249) | (4) | (78) | (1,284) | (79) | (304) | 3 | (458) |
Non-GAAP General and Administrative | 16,610 | 16,750 | 19,125 | 21,328 | 73,813 | 21,744 | 23,164 | 23,972 | 26,357 | 95,237 | 28,587 | 29,055 | 29,400 | 113,399 |
Amortization of Other Intangibles | 8,686 | 8,686 | 8,685 | 8,687 | 34,744 | 7,540 | 7,539 | 7,539 | 7,539 | 30,157 | 6,573 | 6,573 | 6,573 | 27,258 |
Share-based compensation | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Employer payroll taxes on employee stock transactions | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Amortization of other intangibles | (8,686) | (8,686) | (8,685) | (8,687) | (34,744) | (7,540) | (7,539) | (7,539) | (7,539) | (30,157) | (6,573) | (6,573) | (6,573) | (27,258) |
Restructuring & other | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Non-GAAP Amortization of Other Intangibles | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Restructuring & other | (21) | 46 | (2) | 17 | 40 | 26 | (1) | - 0 | - 0 | 25 | (10) | - 0 | (5) | (15) |
Share-based compensation | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Employer payroll taxes on employee stock transactions | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Amortization of other intangibles | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Restructuring & other | 21 | (46) | 2 | (17) | (40) | (26) | 1 | - 0 | - 0 | (25) | 10 | - 0 | 5 | 15 |
Non-GAAP Restructuring & other | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Operating income | 24,106 | 22,831 | 24,107 | 20,852 | 91,896 | 21,212 | 21,251 | 21,215 | 17,629 | 81,307 | 19,094 | 20,399 | 33,887 | 91,009 |
Share-based compensation | 12,672 | 14,831 | 15,588 | 14,693 | 57,784 | 19,252 | 25,575 | 27,123 | 27,586 | 99,536 | 28,695 | 40,654 | 35,504 | 132,439 |
Employer payroll taxes on employee stock transactions | 285 | 1,696 | 692 | 1,441 | 4,114 | 1,727 | 1,991 | 1,277 | 949 | 5,944 | 1,642 | 1,040 | 808 | 4,439 |
Amortization of other intangibles | 12,512 | 12,516 | 12,516 | 12,517 | 50,061 | 11,370 | 11,403 | 11,483 | 11,414 | 45,670 | 10,465 | 10,461 | 10,462 | 42,802 |
Restructuring & other | 1,538 | 1,385 | 498 | (25) | 3,396 | (21) | 1,248 | 4 | 78 | 1,309 | 419 | 334 | (8) | 823 |
Non-GAAP Operating income | 51,113 | 53,259 | 53,401 | 49,478 | 207,251 | 53,540 | 61,468 | 61,102 | 57,656 | 233,766 | 60,315 | 72,888 | 80,653 | 271,512 |
Net income | 12,865 | 17,479 | 18,416 | 26,954 | 75,714 | 13,294 | 23,641 | 14,587 | 929 | 52,451 | 2,114 | 10,526 | 15,026 | 28,595 |
Income tax (benefit) expense | 7,147 | 1,949 | 4,762 | (11,719) | 2,139 | 6,372 | (6,340) | 2,821 | 16,355 | 19,208 | 12,555 | 8,146 | 15,691 | 52,747 |
Cash (paid for) received from tax | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Non-GAAP effective cash tax | (3,578) | (3,786) | (3,810) | (3,546) | (14,720) | (6,140) | (7,113) | (7,093) | (7,543) | (27,889) | (6,407) | (7,967) | (9,080) | (30,997) |
Interest expense, net | 4,113 | 3,602 | 3,455 | 3,035 | 14,205 | 2,857 | 2,651 | 2,450 | 2,234 | 10,192 | 2,175 | 513 | 4,787 | 9,709 |
Cash paid for interest, net | (3,763) | (3,160) | (2,991) | (2,561) | (12,475) | (2,370) | (2,190) | (1,989) | (1,826) | (8,375) | (2,066) | (467) | 1,896 | (2,463) |
Share-based compensation | 12,672 | 14,831 | 15,588 | 14,693 | 57,784 | 19,252 | 25,575 | 27,123 | 27,586 | 99,536 | 28,695 | 40,654 | 35,504 | 132,439 |
Employer payroll taxes on employee stock transactions | 285 | 1,696 | 692 | 1,441 | 4,114 | 1,727 | 1,991 | 1,277 | 949 | 5,944 | 1,642 | 1,040 | 808 | 4,439 |
Amortization of other intangibles | 8,686 | 8,686 | 8,685 | 8,687 | 34,744 | 7,540 | 7,539 | 7,539 | 7,539 | 30,157 | 6,573 | 6,573 | 6,573 | 27,258 |
Amortization of acquired technology | 3,826 | 3,830 | 3,831 | 3,830 | 15,317 | 3,830 | 3,864 | 3,944 | 3,875 | 15,513 | 3,892 | 3,888 | 3,889 | 15,544 |
Transaction, restructuring, and other | 1,538 | 1,385 | 498 | (25) | 3,396 | (21) | 1,248 | 4 | 78 | 1,309 | 419 | 334 | (8) | 823 |
(Gain) loss on currency translation | (19) | (199) | (2,526) | 2,582 | (162) | (1,311) | 1,299 | 1,357 | (1,889) | (544) | 2,250 | 1,214 | (1,617) | (42) |
Non-GAAP net income | 43,772 | 46,313 | 46,600 | 43,371 | 180,056 | 45,030 | 52,165 | 52,020 | 48,287 | 197,502 | 51,842 | 64,454 | 73,469 | 238,052 |
Share count: | ||||||||||||||
Weighted-average shares outstanding - basic | 279,069 | 280,077 | 281,010 | 281,726 | 280,469 | 282,661 | 283,923 | 284,722 | 285,349 | 284,161 | 286,203 | 287,190 | 287,957 | |
Weighted-average shares outstanding - diluted | 284,309 | 286,252 | 286,427 | 288,067 | 286,509 | 288,988 | 291,177 | 291,845 | 290,339 | 290,903 | 290,024 | 290,601 | 291,228 | |
Shares used in non-GAAP per share calculations: | ||||||||||||||
Weighted-average shares outstanding - basic | 279,069 | 280,077 | 281,010 | 281,726 | 280,469 | 282,661 | 283,923 | 284,722 | 285,349 | 284,161 | 286,203 | 287,190 | 287,957 | |
Weighted-average shares outstanding - diluted | 284,309 | 286,252 | 286,427 | 288,067 | 286,509 | 288,988 | 291,177 | 291,845 | 290,339 | 290,903 | 290,024 | 290,601 | 291,228 | |
Net income per share: | ||||||||||||||
Net income per share - basic | 0.05 | 0.06 | 0.07 | 0.10 | 0.27 | 0.05 | 0.08 | 0.05 | 0.00 | 0.18 | 0.01 | 0.04 | 0.05 | |
Net income per share - diluted | 0.05 | 0.06 | 0.06 | 0.09 | 0.26 | 0.05 | 0.08 | 0.05 | 0.00 | 0.18 | 0.01 | 0.04 | 0.05 | |
Non-GAAP net income per share - basic | 0.16 | 0.17 | 0.17 | 0.15 | 0.64 | 0.16 | 0.18 | 0.18 | 0.17 | 0.70 | 0.18 | 0.22 | 0.26 | |
Non-GAAP net income per share - diluted | 0.15 | 0.16 | 0.16 | 0.15 | 0.63 | 0.16 | 0.18 | 0.18 | 0.17 | 0.68 | 0.18 | 0.22 | 0.25 | |
(1)Prior periods have been updated from previously issued financial statements |
&G
Dynatrace, Inc. | ||||||||||||||
FCF and uFCF (in thousands) | ||||||||||||||
FY 2021 | FY 2022 | FY 2023 | ||||||||||||
Q1(1) | Q2(1) | Q3(1) | Q4 | FY | Q1(1) | Q2(1) | Q3 | Q4 | FY | Q1 | Q2 | Q3 | TTM | |
Free Cash Flow ("FCF") | ||||||||||||||
Net cash provided by operating activities | 37,008 | 23,841 | 73,716 | 85,871 | 220,436 | 83,472 | 18,296 | 60,844 | 88,305 | 250,917 | 143,098 | 29,398 | 61,962 | 322,763 |
Property and equipment | (4,418) | (1,982) | (2,468) | (5,208) | (14,076) | (2,954) | (4,658) | (4,156) | (5,927) | (17,695) | (6,906) | (4,331) | (4,388) | (21,552) |
FCF | 32,590 | 21,859 | 71,248 | 80,663 | 206,360 | 80,518 | 13,638 | 56,688 | 82,378 | 233,222 | 136,192 | 25,067 | 57,574 | 301,211 |
Unlevered Free Cash Flow ("uFCF") | ||||||||||||||
Cash paid for interest expense | 3,763 | 3,160 | 2,991 | 2,561 | 12,475 | 2,370 | 2,190 | 1,989 | 1,826 | 8,375 | ||||
Discrete tax items | 7,510 | 7,390 | - 0 | 3,043 | 17,943 | (1,183) | (3,846) | 1 | (1,519) | (6,547) | ||||
Transaction, restructuring, and other | 1,538 | 1,385 | 498 | (25) | 3,396 | (21) | 248 | 1,004 | 78 | 1,309 | ||||
Total uFCF | 45,401 | 33,794 | 74,737 | 86,242 | 240,174 | 81,684 | 12,230 | 59,682 | 82,763 | 236,359 | ||||
Interest tax adjustment | (941) | (790) | (748) | (640) | (3,119) | (593) | (548) | (496) | (457) | (2,094) | ||||
uFCF | 44,460 | 33,004 | 73,989 | 85,602 | 237,055 | 81,091 | 11,682 | 59,186 | 82,306 | 234,265 | ||||
(1)Prior periods have been updated from previously issued financial statements |
&G
Dynatrace, Inc. | ||||||||||||||
Total ARR Expansion Trend Tables | ||||||||||||||
(in thousands) | ||||||||||||||
FY 2021 | FY 2022 | FY 2023 | ||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||
Year-over-Year | ||||||||||||||
ARR (As Reported) | 601,376 | 638,063 | 721,995 | 774,090 | 823,222 | 863,863 | 929,906 | 995,121 | 1,031,284 | 1,064,951 | 1,162,591 | |||
Year-over-Year increase | 37% | 35% | 35% | 35% | 37% | 35% | 29% | 29% | 25% | 23% | 25% | |||
TTM FX headwind/(tailwind)1 | 7,635 | (9,419) | (18,374) | (19,025) | (29,547) | (7,717) | 21,150 | 19,504 | 46,948 | 61,299 | 28,879 | |||
ARR - Constant Currency | 609,011 | 628,644 | 703,621 | 755,065 | 793,675 | 856,146 | 951,056 | 1,014,625 | 1,078,232 | 1,126,250 | 1,191,470 | |||
Year-over-Year ARR Increase - Constant Currency2 | 39% | 33% | 32% | 32% | 32% | 34% | 32% | 31% | 31% | 30% | 28% | |||
TTM Perpetual License Rolloff - Constant Currency3 | 4,486 | 6,828 | 7,753 | 18,429 | 23,638 | 25,298 | 33,513 | 26,824 | 23,298 | 21,349 | 11,157 | |||
Adjusted ARR | 613,497 | 635,472 | 711,374 | 773,494 | 817,313 | 881,444 | 984,569 | 1,041,449 | 1,101,530 | 1,147,599 | 1,202,627 | |||
Adjusted ARR Growth4 | 39% | 35% | 33% | 35% | 36% | 38% | 36% | 35% | 34% | 33% | 29% | |||
Quarter-over-Quarter | Q1 | Q2 | Q3 | Q4 | FY 2021 | Q1 | Q2 | Q3 | Q4 | FY 2022 | Q1 | Q2 | Q3 | TTM |
ARR (As Reported) | 601,376 | 638,063 | 721,995 | 774,090 | 823,222 | 863,863 | 929,906 | 995,121 | 1,031,284 | 1,064,951 | 1,162,591 | |||
Net New ARR (As Reported)5 | 28,617 | 36,684 | 83,935 | 52,095 | 201,331 | 49,132 | 40,641 | 66,043 | 65,215 | 221,031 | 36,163 | 33,667 | 97,640 | 232,685 |
Discontinuation of business in Russia | 5,634 | 5,634 | - 0 | - 0 | - 0 | 5,634 | ||||||||
Quarterly FX headwind/(tailwind)6 | 1,134 | (11,038) | (11,971) | 3,447 | (18,428) | (6,155) | 9,769 | 14,911 | 862 | 19,387 | 18,841 | 24,462 | (18,955) | 25,210 |
Net New ARR - Constant Currency | 29,751 | 25,646 | 71,964 | 55,542 | 182,903 | 42,977 | 50,410 | 80,954 | 71,711 | 246,052 | 55,004 | 58,129 | 78,685 | 263,529 |
Quarterly Perpetual License Rolloff - Constant Currency7 | 324 | 2,520 | 4,416 | 10,970 | 18,230 | 6,130 | 3,726 | 12,130 | 5,419 | 27,405 | 1,756 | 1,823 | 1,979 | 10,977 |
Net New ARR Excluding Perpetual Licence Rolloff - Constant Currency | 30,075 | 28,166 | 76,380 | 66,512 | 201,133 | 49,107 | 54,136 | 93,084 | 77,130 | 273,457 | 56,760 | 59,952 | 80,664 | 274,506 |
Year-over-Year Net New ARR Growth ex-Perp -Constant Currency | -17% | -25% | 17% | 61% | 11% | 63% | 92% | 22% | 16% | 36% | 16% | 11% | -13% | 4% |
Year-over-year FX headwind/(tailwind) using exchange rates from the same quarter in the prior year. Represents the year-over-year growth rate excluding the FX headwind/(tailwind). Represents the cumulative trailing-twelve-month amount of Dynatrace perpetual license ARR that had reached the end of its revenue recognition schedule. Defined as year-over-year growth in Adjusted ARR divided by ARR as reported. Defined as the quarterly increase/(decrease) in the current quarter as reported ARR compared to the previous quarter's as reported ARR. Quarterly FX impact using exchange rates from the prior quarter. Represents the quarterly amount of Dynatrace perpetual license ARR that had reached the end of its revenue recognition schedule in constant currency, net of new perpetual license ARR signed in the quarter.