NYSE$DT

Dynatrace Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Dynatrace demonstrated strong financial performance, achieving significant ARR growth and crossing the $1 billion mark in annualized revenue.

Dynatrace reported strong fourth-quarter results for fiscal year 2022, with adjusted ARR growth of 35% year-over-year. The company surpassed $1 billion in annualized revenue and maintained profitability and free cash flow.

  • Total ARR reached $995 million, with adjusted ARR growth of 35% year-over-year.
  • Total revenue was $253 million, representing a 31% increase on a constant currency basis.
  • Subscription revenue amounted to $235 million, up 31% on a constant currency basis.
  • GAAP EPS was $0.00 and non-GAAP EPS was $0.17 on a dilutive basis.

Headline financials

Total Revenue

$253M

Previous: $197M+28.5%
EPS (adj)

$0.17

Previous: $0.15+13.3%
Total ARR

$995M

Previous: $774M+28.6%
Net Income

$929K

Previous: $27M-96.6%
Operating Income

$18M

Previous: $21M-14.3%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$253M

Q4 2022+28.5%vs Q4 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Dynatrace · $253M total across 2 segments · Q4 2022

  • Subscription
    $235M+28.4%
  • Service
    $17.6M+29.9%

Forward guidance

Dynatrace issued guidance for the first quarter and full year of fiscal 2023, with growth rates compared to the first quarter and full year of fiscal 2022.

Tailwinds

  • Total ARR is expected to be between $1.25 billion and $1.265 billion.
  • Total revenue is projected to be between $261 million and $263.5 million.
  • Subscription revenue is anticipated to be between $244.5 million and $246.5 million.
  • Non-GAAP operating income is forecasted to be between $60 million and $62 million.
  • Non-GAAP net income per diluted share is expected to be between $0.17 and $0.18.

Headwinds

  • The U.S. dollar has continued to strengthen, resulting in a foreign exchange headwind.
  • Suspension of business in Russia and Belarus will result in a headwind of approximately $6 million on ARR and revenue for fiscal 2023.
  • Growth rates for Adjusted ARR, Total revenue, and Subscription revenue are presented in constant currency to provide better visibility into the underlying growth of the business.
  • Reconciliation of non-GAAP operating income, non-GAAP net income, non-GAAP net income per share and free cash flow guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis.
  • Variability of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards are expected to have a significant, and potentially unpredictable, impact on future GAAP financial results.

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 Q4 2022

Historical avgQ4 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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