NYSE$DT

Dynatrace Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Dynatrace exceeded guidance across all key metrics, driven by ARR growth.

Dynatrace reported strong first-quarter results for fiscal year 2022, exceeding guidance across all key metrics. ARR grew by 37% year-over-year, and subscription revenue increased by 36% year-over-year.

  • ARR increased by 37% year-over-year, reaching $823 million.
  • Total revenue increased by 35% year-over-year, totaling $210 million.
  • Subscription revenue grew by 36% year-over-year, amounting to $197 million and representing 94% of total revenue.
  • GAAP EPS was $0.05, and non-GAAP EPS was $0.16 on a dilutive basis.

Headline financials

Total Revenue

$210M

Previous: $156M+34.9%
EPS (adj)

$0.16

Previous: $0.13+23.1%
Total ARR

$823M

Previous: $601M+36.8%
Capital Expenditures

-$2.95M

Previous: -$4.42M+33.1%
Free Cash Flow

$10.3M

Previous: $8.45M+22.4%
Net Income

$13.3M

Previous: $12.9M+3.3%
Operating Income

$21.2M

Previous: $24.1M-12.0%
Gross Profit

$171M

Previous: $127M+34.6%
Cash & Equivalents

$387M

Previous: $250M+54.7%
Total Assets

$2.21B

Previous: $2.05B+8.2%
Stock-Based Comp

$19.3M

Previous: $12.7M+51.9%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$210M

Q1 2022+34.9%vs Q1 2021
Beat estimate in 11 of 12 quarters(92%)
ActualEstimate

Revenue by segment

Dynatrace · $210M total across 2 segments · Q1 2022

  • Subscription
    $197M+36.1%
  • Service
    $13.2M+25.3%

Forward guidance

Dynatrace is issuing guidance for the second quarter and raising guidance for full year fiscal 2022.

Tailwinds

  • Total revenue is expected to be in the range of $219 to $221 million, 30% to 31% growth as reported, or 28% to 29% on a constant currency basis for Q2 2022.
  • Subscription revenue is expected to be in the range of $206.5 to $208 million, 31% to 32% growth as reported, or 29% to 30% on a constant currency basis for Q2 2022.
  • Non-GAAP operating income is expected to be in the range of $53 to $55 million for Q2 2022.
  • Non-GAAP net income is expected to be in the range of $44.5 to $46.5 million for Q2 2022.
  • Total ARR is expected to be in the range of $984 to $996 million, 27% to 29% growth as reported, or 26% to 28% on a constant currency basis for FY 2022.

Headwinds

  • Non-GAAP net income per diluted share is expected to be in the range of $0.15 to $0.16, based on a range of 290 to 291 million diluted weighted-average shares outstanding for Q2 2022.
  • Total revenue is expected to be in the range of $902 to $914 million, 28% to 30% growth as reported, or 26% to 28% growth on a constant currency basis for FY 2022.
  • Subscription revenue is expected to be in the range of $848 to $856 million, 29% to 31% growth as reported, or 27% to 29% growth on a constant currency basis for FY 2022.
  • Non-GAAP operating income is expected to be in the range of $208 to $218 million for FY 2022.
  • Non-GAAP net income is expected to be in the range of $175 to $184 million for FY 2022.

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 2022

Historical avgQ1 2022

+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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