NYSE$DT

Dynatrace Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Dynatrace's Q2 2023 financial results were released, demonstrating performance exceeding guidance across key metrics with adjusted ARR growth of 33% year-over-year.

Dynatrace reported strong second-quarter results, exceeding guidance across all key metrics. Total ARR reached $1,065 million, with adjusted ARR growth of 33% year-over-year. Total revenue was $279 million, up 30% on a constant currency basis, and subscription revenue was $261 million, up 29% on a constant currency basis. EPS was $0.04, and Non-GAAP EPS was $0.22.

  • Total ARR reached $1,065 million, with adjusted ARR growth of 33% year-over-year.
  • Total revenue was $279 million, up 30% on a constant currency basis.
  • Subscription revenue was $261 million, up 29% on a constant currency basis.
  • Dynatrace launched its core Grail™ technology within the Dynatrace Platform, a major advancement in data analytics.

Headline financials

Total Revenue

$279M

Previous: $226M+23.4%
EPS (adj)

$0.22

Previous: $0.18+22.2%
Total ARR

$1.07B

Previous: $864M+23.3%
Capital Expenditures

-$11.2M

Previous: -$7.61M-47.6%
Free Cash Flow

-$711K

Previous: $16M-104.4%
Net Income

$10.5M

Previous: $23.6M-55.5%
Operating Income

$20.4M

Previous: $21.3M-4.0%
Gross Profit

$224M

Previous: $185M+21.1%
Cash & Equivalents

$563M

Previous: $370M+52.1%
Total Assets

$2.42B

Previous: $2.24B+8.0%
Stock-Based Comp

$40.7M

Previous: $25.6M+59.0%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$279M

Q2 2023+23.4%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Dynatrace · $279M total across 2 segments · Q2 2023

  • Subscription
    $261M+22.9%
  • Service
    $18M+31.0%

Forward guidance

Dynatrace is issuing guidance for the third quarter and updating guidance for the full year fiscal 2023. The company expects a total revenue of $283 - $286 million for Q3 2023 and $1,119 - $1,126 million for fiscal year 2023. Total ARR is expected to be $1,164 - $1,172 million for fiscal year 2023.

Tailwinds

  • Total revenue for Q3 Fiscal 2023 is expected to be $283 - $286 million.
  • Subscription revenue for Q3 Fiscal 2023 is expected to be $266.5 - $268.5 million.
  • Non-GAAP operating income for Q3 Fiscal 2023 is expected to be $71.5 - $73.5 million.
  • Total ARR for fiscal year 2023 is expected to be $1,164 - $1,172 million.
  • Total revenue for fiscal year 2023 is expected to be $1,119 - $1,126 million.

Headwinds

  • Total ARR guidance for fiscal year 2023 was decreased by $(52) million.
  • Total revenue guidance for fiscal year 2023 was decreased by $(8) million.
  • Subscription revenue guidance for fiscal year 2023 was decreased by $(8) million.
  • The total FY23 FX impact on ARR is expected to be approximately $60 million.
  • The total FY23 FX impact on Revenue is expected to be approximately $60 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 Q2 2023

Historical avgQ2 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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