NYSE$DT

Dynatrace Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Solid execution with balanced growth and profitability was delivered, highlighting the durability of the business.

Dynatrace released financial results for the first quarter of fiscal 2023, reporting a 34% year-over-year growth in Adjusted ARR and a total revenue of $267 million, up 32% on a constant currency basis.

  • Total ARR of $1,031 million, Adjusted ARR growth of 34% year-over-year.
  • Total Revenue of $267 million, up 32% on a constant currency basis.
  • Subscription Revenue of $250 million, up 32% on a constant currency basis.
  • Added 135 new logos to the Dynatrace® platform in the first quarter, consistent with the first quarter of last fiscal year.

Headline financials

Total Revenue

$267M

Previous: $210M+27.4%
EPS (adj)

$0.18

Previous: $0.16+12.5%
Total ARR

$1.03B

Previous: $823M+25.3%
Capital Expenditures

-$6.91M

Previous: -$2.95M-133.8%
Free Cash Flow

-$4.79M

Previous: $10.3M-146.3%
Net Income

$2.11M

Previous: $13.3M-84.1%
Operating Income

$19.1M

Previous: $21.2M-10.0%
Gross Profit

$215M

Previous: $171M+26.1%
Cash & Equivalents

$571M

Previous: $387M+47.6%
Total Assets

$2.43B

Previous: $2.21B+9.8%
Stock-Based Comp

$28.7M

Previous: $19.3M+49.0%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$267M

Q1 2023+27.4%vs Q1 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Dynatrace · $267M total across 2 segments · Q1 2023

  • Subscription
    $250M+27.0%
  • Service
    $17.7M+34.5%

Forward guidance

Dynatrace is issuing guidance for the second quarter and updating guidance for full year fiscal 2023.

Tailwinds

  • Q2 Total revenue between $272 - $275 million
  • Q2 Subscription revenue between $255 - $257 million
  • Q2 Non-GAAP operating income between $62 - $64.5 million
  • Q2 Non-GAAP net income between $52.5 - $55 million
  • Q2 Non-GAAP net income per diluted share between $0.18 - $0.19

Headwinds

  • Total ARR between $1,213 - $1,226 million
  • Total revenue between $1,125 - $1,136 million
  • Subscription revenue between $1,053 - $1,062 million
  • Non-GAAP operating income between $252 - $261 million
  • Free cash flow between $310 - $325 million

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 2023

Historical avgQ1 2023

+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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