NYSE$DT

Dynatrace Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Dynatrace's first quarter results exceeded guidance, demonstrating growth and profitability.

Dynatrace's Q1 2024 results exceeded guidance across all key metrics, demonstrating a powerful combination of growth and profitability. Total ARR reached $1,294 million, up 25% year-over-year on a constant currency basis, and total revenue was $333 million, also up 25% on a constant currency basis. GAAP Operating Income was $34 million, and Non-GAAP Operating Income was $92 million.

  • ARR increased by 25% year-over-year on a constant currency basis, reaching $1,294 million.
  • Total revenue increased by 25% on a constant currency basis, totaling $333 million.
  • GAAP operating margin was 10%, while non-GAAP operating margin was 28%.
  • The Davis AI engine was expanded to deliver hypermodal artificial intelligence.

Headline financials

Total Revenue

$333M

Previous: $267M+24.5%
EPS (adj)

$0.27

Previous: $0.18+50.0%
Total ARR

$1.29B

Previous: $1.03B+25.5%
Capital Expenditures

-$10.3M

Previous: -$6.91M-48.7%
Free Cash Flow

$27.9M

Previous: -$4.79M+682.7%
Net Income

$38.2M

Previous: $2.11M+1706.4%
Operating Income

$34.3M

Previous: $19.1M+79.6%
Gross Profit

$271M

Previous: $215M+25.6%
Cash & Equivalents

$701M

Previous: $571M+22.6%
Total Assets

$2.73B

Previous: $2.43B+12.2%
Stock-Based Comp

$40.5M

Previous: $28.7M+41.2%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$333M

Q1 2024+24.5%vs Q1 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Dynatrace · $333M total across 2 segments · Q1 2024

  • Subscription
    $316M+26.8%
  • Service
    $16.4M-7.2%

Forward guidance

Dynatrace is issuing guidance for the second quarter and updating guidance for full year fiscal 2024. The total foreign exchange tailwind for fiscal 2024 is now expected to be approximately $11 million on ARR and $15 million on revenue.

Tailwinds

  • Total ARR $1,475 - $1,490 million
  • Total revenue $1,400 - $1,415 million
  • Subscription revenue $1,326 - $1,341 million
  • Non-GAAP operating income $357 - $367 million
  • Non-GAAP net income $309 - $320 million

Headwinds

  • Total ARR growth as reported 18% - 20%
  • Total ARR growth constant currency 18% - 19%
  • Total revenue growth as reported 21% - 22%
  • Total revenue growth constant currency 20% - 21%
  • Subscription revenue growth as reported 22% - 24%

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 2024

Historical avgQ1 2024

+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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