Dynatrace Shares Drop Despite Q3 Beat; Margin Contracts

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Dynatrace Inc. reported third-quarter FY22 revenue growth of 32 percent year-on-year to $240.8 million, beating the consensus of $234.4 million.

Total ARR increased 29 percent Y/Y to $930 million. Revenues from Subscription rose 33 percent Y/Y to $226 million.

Margins

The non-GAAP operating margin contracted 400 basis points to 25 percent.

Non-GAAP EPS of $0.18 beat the consensus of $0.16.

Dynatrace generated $60.8 million in operating cash flow. It held $408.7 million in cash and equivalents.

Outlook

Dynatrace sees Q4 revenue of $245 million – $247 million, versus the consensus of $246.6 million. It sees non-GAAP EPS of $0.15 – $0.16 at par against the consensus of $0.15.

For FY22, it expects total revenue of $922 million – $924 million (prior view $913 million – $919 million), above the consensus of $917.4 million.

Non-GAAP EPS of $0.66 – $0.67 (prior $0.63 – $0.65), above the consensus of $0.65.

“Having completed my first quarter as CEO, I am very pleased with our third-quarter performance, beating the high end of guidance across our key operating metrics driven by new logo additions and continued net expansion rate above 120 percent,” said CEO Rick McConnell.

By Anusuya Lahiri

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.

Benzinga

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