NYSE$DT

Dynatrace Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Dynatrace reported strong first quarter results, driven by digital transformation acceleration and intelligent observability.

Dynatrace's first quarter fiscal year 2021 results showed strong growth, with revenue increasing 27% year-over-year to $155.5 million and ARR growing 37% year-over-year to $601.4 million. The company's GAAP EPS was $0.05 and non-GAAP EPS was $0.13.

  • Total revenue increased by 27% to $155.5 million.
  • ARR increased by 37% to $601.4 million.
  • Subscription revenue increased by 34% to $144.4 million, representing 93% of total revenue.
  • GAAP EPS was $0.05 and non-GAAP EPS was $0.13.

Headline financials

Total Revenue

$156M

Previous: $123M+26.9%
EPS (adj)

$0.13

Previous: $0.04+225.0%
Total ARR

$601M

Previous: $438M+37.4%
Capital Expenditures

-$4.42M

Previous: -$4.15M-6.4%
Free Cash Flow

$8.45M

Previous: -$53.3M+115.8%
Net Income

$12.9M

Previous: -$49.2M+126.2%
Operating Income

$24.1M

Previous: -$33M+173.0%
Gross Profit

$127M

Previous: $93M+36.5%
Cash & Equivalents

$250M

Previous: $57.5M+335.8%
Total Assets

$2.05B

Previous: $1.78B+15.3%
Stock-Based Comp

$12.7M

Previous: $41.4M-69.4%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$156M

Q1 2021+26.9%vs Q1 2020
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Revenue by segment

Dynatrace · $155M total across 2 segments · Q1 2021

  • Subscription
    $144M+33.5%
  • Service
    $10.5M

Forward guidance

Dynatrace is issuing guidance for the second quarter and raising full year fiscal 2021.

Tailwinds

  • Total revenue is expected to be in the range of $159.0 million to $161.0 million, 23% to 24% growth as reported, and 25% to 26% on a constant currency basis
  • Subscription revenue is expected to be in the range of $149.0 million to $150.5 million, 29% to 30% growth as reported, 30% to 32% on a constant currency basis
  • Non-GAAP operating income is expected to be in the range of $43.0 million to $45.0 million
  • Non-GAAP net income is expected to be in the range of $27.0 million to $28.5 million
  • Non-GAAP net income per diluted share is expected to be in the range of $0.09 to $0.10, based on a range of 288 million to 289 million diluted weighted-average shares outstanding

Headwinds

  • Many of our customers and prospects are operating under very challenging circumstances and may reduce or re-evaluate their spend.
  • Our outlook assumes a continued challenging economic environment and incorporates a wider range of outcomes for the remainder of the fiscal year.
  • Significant variation from these assumptions could cause us to raise, lower or modify our expectations and our guidance, and we undertake no obligation to update our assumptions, expectations or our guidance.
  • These statements are forward-looking, and actual results may differ materially
  • Reconciliation of non-GAAP operating income, non-GAAP net income, non-GAAP net income per share and unlevered free cash flow guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.6%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+4.2%

Avg return

30 days after

57%

16 / 28 earnings

Positive

+20.5%

Q3 2023

Best reaction

-21.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-15.1%+1.6%+4.0%
Q3 2026+7.3%+10.4%+11.5%
Q2 2026-4.3%-5.9%-10.4%
Q1 2026-0.1%-8.9%-1.0%
Q4 2025+6.0%+5.4%+4.9%
Q3 2025+0.7%+3.4%-0.2%
Q2 2025-6.4%-5.4%+3.2%
Q1 2025+16.8%+16.1%+23.9%
Q4 2024+4.4%+4.2%-1.1%
Q3 2024-11.3%-14.2%-22.8%
Q2 2024+7.3%+9.8%+23.5%
Q1 2024-13.5%-12.5%-12.7%
Q4 2023+5.1%+5.0%+9.4%
Q3 2023+20.5%+20.6%+12.8%
Q2 2023-2.7%-1.2%+14.3%
Q1 2023+6.3%+9.7%-4.1%
Q4 2022+12.5%+15.8%+17.2%
Q3 2022-21.8%-16.0%-26.4%
Q2 2022-4.6%-4.9%-19.0%
Q1 2022+2.0%+2.6%+7.2%
Q4 2021-1.9%+2.8%+22.2%
Q3 2021+17.6%+27.5%+13.4%
Q2 2021-11.4%-15.4%-5.8%
Q1 2021+4.0%+1.6%+6.2%
Q4 2020-1.7%-1.4%+5.8%
Q3 2020+11.8%+5.4%+12.6%
Q2 2020+9.3%+12.3%+43.5%
Q1 2020+7.1%-6.9%-13.9%
Q4 2019
Q3 2019
Q2 2018
Q1 2018
Q4 2018
Q3 2017

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