NYSE$DT

Dynatrace Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Dynatrace demonstrated strong performance, exceeding expectations with robust fourth-quarter results, driven by the increasing demand for observability solutions amid cloud migration and digital transformation initiatives.

Dynatrace reported a strong fourth quarter, exceeding expectations. Total ARR reached $1,247 million, with adjusted ARR growth of 29% year-over-year. Total revenue was $314 million, up 27% on a constant currency basis, and subscription revenue was $293 million, up 28% on a constant currency basis. GAAP EPS was $0.27, and non-GAAP EPS was $0.31.

  • Total ARR reached $1,247 million, with adjusted ARR growth of 29% year-over-year.
  • Total revenue was $314 million, up 27% on a constant currency basis.
  • Subscription revenue was $293 million, up 28% on a constant currency basis.
  • GAAP EPS was $0.27, and non-GAAP EPS was $0.31.

Headline financials

Total Revenue

$314M

Previous: $253M+24.5%
EPS (adj)

$0.31

Previous: $0.17+82.4%
Total ARR

$1.25B

Previous: $995M+25.3%
Capital Expenditures

$5.92M

No prior period
Free Cash Flow

$115M

No prior period
Net Income

$80.3M

Previous: $929K+8542.9%
Operating Income

$19.4M

Previous: $18M+8.0%
Gross Profit

$255M

No prior period
Cash & Equivalents

$555M

No prior period
Total Assets

$2.77B

No prior period
Stock-Based Comp

$42M

No prior period

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$314M

Q4 2023+24.5%vs Q4 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Dynatrace · $314M total across 2 segments · Q4 2023

  • Subscription
    $293M+24.7%
  • Service
    $21.2M+20.2%

Forward guidance

Dynatrace is issuing guidance for the first quarter and full year fiscal 2024. The total foreign exchange tailwind for fiscal 2024 is expected to be approximately $10 million on ARR and $13 million on revenue.

Tailwinds

  • First Quarter Fiscal 2024 ARR: $1,475 - $1,490 million (As reported: 18% - 20% growth)
  • First Quarter Fiscal 2024 Total Revenue: $325 - $328 million (As reported: 22% - 23% growth)
  • First Quarter Fiscal 2024 Subscription Revenue: $306 - $309 million (As reported: 23% - 24% growth)
  • First Quarter Fiscal 2024 Non-GAAP Operating Income: $76.5 - $78.5 million
  • First Quarter Fiscal 2024 Non-GAAP Net Income per Diluted Share: $0.22

Headwinds

  • Full Year Fiscal 2024 Free cash flow margin: -22%
  • First Quarter Fiscal 2024 Constant currency ARR: 18% - 19%
  • First Quarter Fiscal 2024 Constant currency Total revenue: 22% - 23%
  • First Quarter Fiscal 2024 Constant currency Subscription revenue: 23% - 24%
  • First Quarter Fiscal 2024 Free cash flow: -$303 - $312

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 2023

Historical avgQ4 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

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