NYSE$DT

Dynatrace Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of fiscal year 2022, exceeding guidance across all key operating metrics.

Dynatrace's Q2 2022 saw ARR increase by 35% year-over-year to $864 million and subscription revenue increase by 35% year-over-year to $213 million. GAAP EPS was $0.08 and non-GAAP EPS was $0.18.

  • ARR reached $864 million, a 35% increase year-over-year (34% on a constant currency basis).
  • Subscription revenue was $213 million, up 35% year-over-year (33% on a constant currency basis).
  • GAAP EPS was reported at $0.08 and non-GAAP EPS at $0.18 on a dilutive basis.
  • Strategic partnerships with Microsoft and Google were deepened, enhancing Dynatrace's availability across hyperscale platforms.

Headline financials

Total Revenue

$226M

Previous: $169M+34.3%
EPS (adj)

$0.18

Previous: $0.18+0.0%
Total ARR

$864M

Previous: $638M+35.4%
Capital Expenditures

-$7.61M

Previous: -$6.4M-18.9%
Free Cash Flow

$16M

Previous: $11.1M+44.7%
Net Income

$23.6M

Previous: $17.5M+35.3%
Operating Income

$21.3M

Previous: $22.8M-6.9%
Gross Profit

$185M

Previous: $138M+34.0%
Cash & Equivalents

$370M

Previous: $248M+49.1%
Total Assets

$2.24B

Previous: $2.06B+9.1%
Stock-Based Comp

$25.6M

Previous: $14.8M+72.4%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$226M

Q2 2022+34.3%vs Q2 2021
Beat estimate in 12 of 13 quarters(92%)
ActualEstimate

Revenue by segment

Dynatrace · $226M total across 2 segments · Q2 2022

  • Subscription
    $213M+34.8%
  • Service
    $13.8M+31.3%

Forward guidance

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

Tailwinds

  • Total revenue is expected to be in the range of $233 to $235 million, 27% to 28% growth as reported, or 28% to 29% on a constant currency basis for Q3 2022.
  • Subscription revenue is expected to be in the range of $219.5 to $221 million, 29% to 30% growth as reported, or 30% to 31% on a constant currency basis for Q3 2022.
  • Total ARR is expected to be in the range of $986 to $996 million, 27% to 29% growth as reported, or 29% to 30% growth on a constant currency basis for fiscal year 2022.
  • Total revenue is expected to be in the range of $913 to $919 million, 30% to 31% growth as reported, 29% to 30% growth on a constant currency basis for fiscal year 2022.
  • Subscription revenue is expected to be in the range of $857.5 to $862.5 million, 31% to 32% growth as reported, 30% to 31% growth on a constant currency basis for fiscal year 2022.

Headwinds

  • Non-GAAP operating income is expected to be in the range of $54 to $56 million for Q3 2022.
  • Non-GAAP net income is expected to be in the range of $45.5 to $47.5 million for Q3 2022.
  • Non-GAAP net income per diluted share is expected to be $0.16, based on a range of 292 to 293 million diluted weighted-average shares outstanding for Q3 2022.
  • Non-GAAP operating income is expected to be in the range of $219 to $226 million for fiscal year 2022.
  • Non-GAAP net income is expected to be in the range of $185 to $191 million for fiscal year 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 Q2 2022

Historical avgQ2 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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