NYSE$DT

Dynatrace Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Dynatrace's Q3 2022 financial results were reported, demonstrating strong performance driven by new logo additions and a net expansion rate above 120%.

Dynatrace reported a strong third quarter in fiscal year 2022, exceeding guidance across key operating metrics. ARR reached $930 million, up 29% year-over-year, and subscription revenue grew by 33% to $226 million. The company added 206 new logos and saw increased partner influence in new transactions.

  • ARR reached $930 million, a 29% increase year-over-year (32% on a constant currency basis).
  • Total revenue was $241 million, up 32% year-over-year (33% on a constant currency basis).
  • Subscription revenue increased by 33% to $226 million, representing 94% of total revenue.
  • GAAP EPS was $0.05, and non-GAAP EPS was $0.18 on a diluted basis.

Headline financials

Total Revenue

$241M

Previous: $183M+31.6%
EPS (adj)

$0.18

Previous: $0.17+5.9%
Total ARR

$930M

Previous: $722M+28.8%
Capital Expenditures

-$11.8M

Previous: -$8.87M-32.7%
Free Cash Flow

$2.82M

Previous: $9.55M-70.5%
Net Income

$14.6M

Previous: $18.4M-20.8%
Operating Income

$21.2M

Previous: $24.1M-12.0%
Gross Profit

$196M

Previous: $150M+31.1%
Cash & Equivalents

$409M

Previous: $300M+36.5%
Total Assets

$2.4B

Previous: $2.17B+10.7%
Stock-Based Comp

$27.1M

Previous: $15.6M+74.0%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$241M

Q3 2022+31.6%vs Q3 2021
Beat estimate in 13 of 14 quarters(93%)
ActualEstimate

Revenue by segment

Dynatrace · $240M total across 2 segments · Q3 2022

  • Subscription
    $226M+32.7%
  • Service
    $14.5M+17.2%

Forward guidance

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

Tailwinds

  • Total revenue for Q4 Fiscal 2022 is expected to be $245 - $247 million.
  • Subscription revenue for Q4 Fiscal 2022 is expected to be $230.5 - $232 million.
  • Non-GAAP operating income for Q4 Fiscal 2022 is expected to be $51.5 - $53.5 million.
  • Non-GAAP net income for Q4 Fiscal 2022 is expected to be $44 - $45.5 million.
  • Non-GAAP net income per diluted share for Q4 Fiscal 2022 is expected to be $0.15 - $0.16.

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 2022

Historical avgQ3 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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