NYSE$DT

Dynatrace Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Dynatrace's financial performance was strong, marked by significant ARR growth and successful expansion in the cloud application security market.

Dynatrace reported strong third-quarter fiscal year 2021 results, with a 35% year-over-year increase in ARR and a 28% increase in total revenue. The company also expanded its strategic partnerships with Google Cloud Platform and Microsoft Azure.

  • ARR increased by 35% year-over-year, reaching $722.0 million.
  • Subscription revenue grew by 33% year-over-year, totaling $170.3 million.
  • GAAP EPS was reported at $0.06, and non-GAAP EPS at $0.17 on a dilutive basis.
  • Dynatrace entered the Cloud Application Security market, estimating a $18 billion TAM over time.

Headline financials

Total Revenue

$183M

Previous: $143M+27.6%
EPS (adj)

$0.17

Previous: $0.10+70.0%
Total ARR

$722M

Previous: $535M+35.1%
Capital Expenditures

-$8.87M

Previous: -$15.1M+41.4%
Free Cash Flow

$9.55M

Previous: -$13.4M+171.4%
Net Income

$18.4M

Previous: $1.76M+944.6%
Operating Income

$24.1M

Previous: $7.56M+219.1%
Gross Profit

$150M

Previous: $115M+30.7%
Cash & Equivalents

$300M

Previous: $189M+58.8%
Total Assets

$2.17B

Previous: $1.99B+9.0%
Stock-Based Comp

$15.6M

Previous: $13.5M+15.4%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$183M

Q3 2021+27.6%vs Q3 2020
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Revenue by segment

Dynatrace · $183M total across 2 segments · Q3 2021

  • Subscription
    $170M+32.5%
  • Service
    $12.3M+13.4%

Forward guidance

Dynatrace is issuing guidance for the fourth quarter and raising guidance for full year fiscal 2021.

Tailwinds

  • Total revenue is expected to be in the range of $190 million to $192 million for Q4 2021.
  • Subscription revenue is expected to be in the range of $178 million to $180 million for Q4 2021.
  • Non-GAAP operating income is expected to be in the range of $44 million to $46 million for Q4 2021.
  • Non-GAAP net income is expected to be in the range of $38 million to $40 million for Q4 2021.
  • Total ARR is expected to be in the range of $756 million to $760 million for fiscal year 2021.

Headwinds

  • Guidance factors in the expected impacts of COVID‑19 on the business.
  • Outlook assumes a continued challenging economic environment.
  • Many customers and prospects are operating under very challenging circumstances and may reduce or re-evaluate their spend.
  • Significant variation from these assumptions could cause the company to raise, lower or modify expectations and guidance.
  • Reconciliation of non-GAAP operating income, non-GAAP net income, non-GAAP net income per share and unlevered free cash flow guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures

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 Q3 2021

Historical avgQ3 2021

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro