NYSE$DT

Dynatrace Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Dynatrace's Q3 2024 financial results exceeded expectations, demonstrating balanced growth, profitability, and strong free cash flow.

Dynatrace reported strong Q3 fiscal year 2024 results, exceeding the high end of guidance across all metrics. The company achieved ARR growth of 21% year-over-year on a constant currency basis and a GAAP Operating Margin of 10%.

  • Total ARR reached $1,425 million, a 23% increase (21% on a constant currency basis).
  • Total revenue was $365 million, up 23% (21% on a constant currency basis).
  • Subscription revenue reached $348 million, a 25% increase (23% on a constant currency basis).
  • GAAP EPS was $0.14, and Non-GAAP EPS was $0.32 on a dilutive basis.

Headline financials

Total Revenue

$365M

Previous: $297M+22.7%
EPS

$0.14

Previous: $0.25-44.0%
Total ARR

$1.43B

Previous: $1.16B+22.5%
Capital Expenditures

-$16.7M

Previous: -$15.6M-6.6%
Free Cash Flow

$26M

Previous: -$599K+4445.4%
Net Income

$42.7M

Previous: $15M+184.1%
Operating Income

$35.7M

Previous: $33.9M+5.4%
Gross Profit

$297M

Previous: $242M+23.0%
R&D Expense

$80.1M

No prior period
Stock-Based Comp

$54.8M

Previous: $35.5M+54.4%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$365M

Q3 2024+22.7%vs Q3 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Dynatrace · $352M total across 2 segments · Q2 2024

  • Subscription
    $334M+28.0%
  • Service
    $17.2M-4.5%

Forward guidance

Dynatrace is issuing guidance for the fourth quarter and updating guidance for full year fiscal 2024. We now expect foreign exchange to be a tailwind of approximately $10 million on ARR and approximately $13 million on revenue for fiscal 2024.

Tailwinds

  • Total revenue for Q4 Fiscal 2024 is expected to be $372 - $377 million (18%-20% as reported growth).
  • Subscription revenue for Q4 Fiscal 2024 is expected to be $353 - $358 million (20%-22% as reported growth).
  • Non-GAAP income from operations for Q4 Fiscal 2024 is expected to be $85 - $90 million.
  • Non-GAAP net income for Q4 Fiscal 2024 is expected to be $79 - $84 million.
  • Total ARR is expected to be $1,485 - $1,495 million (19%-20% as reported growth).

Headwinds

  • Non-GAAP operating margin for Q4 Fiscal 2024 is expected to be 23%-24%.
  • Non-GAAP net income per diluted share for Q4 Fiscal 2024 is expected to be $0.26 - $0.28.
  • Constant currency growth for total revenue is expected to be 18%-19%.
  • Constant currency growth for subscription revenue is expected to be 20%-21%.
  • Diluted weighted average shares outstanding are expected to be 300 - 301 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 2024

Historical avgQ3 2024

+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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