NYSE$DT

Dynatrace Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Dynatrace demonstrated strong performance, exceeding expectations and highlighting the resilience of its business model.

Dynatrace reported a strong third quarter in fiscal year 2023, with revenue of $297 million and adjusted ARR growth of 29% year-over-year. The company's performance was driven by the secular tailwinds of digital transformation and cloud modernization.

  • Total ARR reached $1,163 million, with adjusted ARR growth of 29% year-over-year.
  • Total revenue amounted to $297 million, reflecting a 29% increase on a constant currency basis.
  • Subscription revenue totaled $279 million, up 29% on a constant currency basis.
  • Dynatrace was recognized as a Leader in The Forrester Wave™: AIOps, Q4 2022 report and Gartner® 2022 Magic Quadrant™ for APM and Observability.

Headline financials

Total Revenue

$297M

Previous: $241M+23.5%
EPS (adj)

$0.25

Previous: $0.18+38.9%
Total ARR

$1.16B

Previous: $930M+25.1%
Capital Expenditures

-$15.6M

Previous: -$11.8M-32.8%
Free Cash Flow

-$599K

Previous: $2.82M-121.2%
Net Income

$15M

Previous: $14.6M+3.0%
Operating Income

$33.9M

Previous: $21.2M+59.7%
Gross Profit

$242M

Previous: $196M+23.1%
Cash & Equivalents

$422M

Previous: $409M+3.4%
Total Assets

$2.41B

Previous: $2.4B+0.7%
Stock-Based Comp

$35.5M

Previous: $27.1M+30.9%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$297M

Q3 2023+23.5%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Dynatrace · $297M total across 2 segments · Q3 2023

  • Subscription
    $279M+23.5%
  • Service
    $18.3M+26.5%

Forward guidance

Dynatrace issued guidance for the fourth quarter and updated guidance for full year fiscal 2023.

Tailwinds

  • Total revenue for Q4 Fiscal 2023 is expected to be $304 - $307 million.
  • Subscription revenue for Q4 Fiscal 2023 is expected to be $285 - $287 million.
  • Non-GAAP operating income for Q4 Fiscal 2023 is expected to be $71.5 - $73.5 million.
  • Non-GAAP net income for Q4 Fiscal 2023 is expected to be $65 - $67 million.
  • Total ARR for fiscal year 2023 is expected to be $1,216 - $1,221 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 Q3 2023

Historical avgQ3 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

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