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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 7, 2024

DYNATRACE, INC.
(Exact name of Registrant as specified in its charter)
Delaware
001-39010
47-2386428
(State or other jurisdiction of
incorporation)
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
1601 Trapelo Road, Suite 116
Waltham,
Massachusetts02451
(Address of principal executive offices)
(Zip Code)
(781) 530-1000
Registrant's telephone number, including area code

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareDTNew York Stock Exchange

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o




Item 2.02. Results of Operations and Financial Conditions.
 
On November 7, 2024, Dynatrace, Inc. (the "Company") issued a press release announcing, and will hold a conference call to discuss, the Company's financial results and other information for the fiscal quarter ended September 30, 2024. The full text of the press release is furnished as Exhibit 99.1 to this report and incorporated into this Item 2.02 by reference.

The information in this Item 2.02 of this Report on Form 8-K and Exhibits 99.1 and 99.2 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.


Item 9.01. Financial Statements and Exhibits.
(d) Exhibits

Exhibit
No.		Description
99.1
99.2
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: November 7, 2024
DYNATRACE, INC.
By:/s/ James Benson
Name: James Benson
Title: Executive Vice President, Chief Financial Officer & Treasurer
  


EXHIBIT 99.1
g668054g46h82a.jpg
Dynatrace Reports Second Quarter Fiscal Year 2025 Financial Results
Exceeds high end of guidance across all metrics
Delivers ARR growth of 19% year-over-year on a constant currency basis
Achieves GAAP Operating Margin of 11% and Non-GAAP Operating Margin of 31%

WALTHAM, Mass., November 7, 2024 - Dynatrace (NYSE: DT) today announced financial results for the second quarter of fiscal 2025 ended September 30, 2024.

"Our continued out-performance across all of our key metrics is a result of the strength of our platform and ability to execute effectively in a dynamic market," said Rick McConnell, Chief Executive Officer of Dynatrace. "The world relies on software, and the largest and most complex global enterprises come to Dynatrace to make their businesses more reliable and resilient. By leveraging our AI-powered observability platform, these organizations gain deep insights, automate operations, and optimize performance at scale."

Second Quarter Fiscal 2025 Financial and Other Recent Business Highlights:
All growth rates are compared to the second quarter of fiscal 2024, unless otherwise noted.

Financial Highlights:
•ARR of $1,617 million, an increase of 20%, or 19% on a constant currency basis
•Total Revenue of $418 million, an increase of 19% on both an as reported and constant currency basis
•Subscription Revenue of $400 million, an increase of 20% on both an as reported and constant currency basis
•GAAP Income from Operations of $47 million and Non-GAAP Income from Operations of $131 million
•GAAP EPS of $0.15 and Non-GAAP EPS of $0.37, both on a dilutive basis

Business Highlights:
•Industry recognition: Dynatrace received the following recognitions by third-party industry analysts:
◦Positioned furthest for Completeness of Vision and highest in Ability to Execute in the 2024 Gartner® Magic Quadrant™ for Observability Platforms. This is the 14th consecutive time that Gartner has named Dynatrace a Leader in this report.1
◦Ranked #1 across 3 of 5 use cases in the 2024 Gartner Critical Capabilities for Observability Platforms Report.2
◦Named a Leader in the Inaugural 2024 Gartner Magic Quadrant for Digital Experience Monitoring for Completeness of Vision and Ability to Execute.3
◦Recognized in the 2024 Constellation Research ShortLists™ for Observability, AIOPs, and Digital Performance Management.4

•Product advancements: Dynatrace announced improved user experience, advanced log management and analytics, and extended cloud-native capabilities that enable customers to gain deeper visibility, boost operational efficiency, and drive productivity across their business.

•Go-to-market engagement: Dynatrace increased customer engagement with several events in the quarter, including more than 2,000 customers and partners attending the company's global Innovate sessions and more than 400 partners at the company's inaugural PowerUp program. In addition, Dynatrace hosted its most successful streaming event to date, "Power of Possible," showcasing how the company is extending customer value to more use cases and teams.

Share Repurchase Program
•During the second quarter, Dynatrace spent $40 million to repurchase 835,000 shares at an average price of $47.90 under its $500 million share repurchase program. From the inception of the program in May 2024 through September 30, 2024, Dynatrace has repurchased 1.9 million shares for $90 million at an average price of $46.71.

1

Second Quarter 2025 Financial Highlights
(Unaudited – In thousands, except per share data)
Three Months Ended September 30,
20242023
Key Operating Metric:
Annual recurring revenue (ARR)$1,616,531 $1,343,530 
Year-over-Year Increase
20 %
Year-over-Year Increase - constant currency (*)
19 %
Revenue:
Total revenue$418,129 $351,700 
Year-over-Year Increase
19 %
Year-over-Year Increase - constant currency (*)
19 %
Subscription revenue
$399,810 $334,497 
Year-over-Year Increase
20 %
Year-over-Year Increase - constant currency (*)
20 %
GAAP Financial Measures:
GAAP income from operations$47,026 $35,269 
GAAP operating margin11 %10 %
GAAP net income$44,008 $35,809 
GAAP net income per share - diluted$0.15 $0.12 
GAAP shares outstanding - diluted301,373 297,794 
Net cash provided by operating activities$23,650 $36,877 
Non-GAAP Financial Measures (*):
Non-GAAP income from operations$130,669 $106,435 
Non-GAAP operating margin 31 %30 %
Non-GAAP net income $112,661 $93,487 
Non-GAAP net income per share - diluted $0.37 $0.31 
Non-GAAP shares outstanding - diluted 301,373 297,794 
Free cash flow $20,138 $34,127 
* For additional information, please see the "Non-GAAP Financial Measures" and "Definitions - Non-GAAP and Other Metrics" sections of this press release.


2

Financial Outlook
Based on information available as of November 7, 2024, Dynatrace is issuing guidance for the third quarter and increasing its previous guidance for full year fiscal 2025 in the table below.
This guidance reflects foreign exchange rates as of October 31, 2024. We now expect foreign exchange to be a headwind of approximately $11 million on ARR and approximately $7 million on revenue for fiscal 2025 compared to ARR and revenue at constant currency. This guidance also excludes the impact of any share repurchases during the third and fourth quarter of fiscal 2025.
Growth rates for ARR, Total revenue, and Subscription revenue are presented in constant currency to provide better visibility into the underlying growth of the business.
All growth rates below are compared to the third quarter and full year of fiscal 2024.
(In millions, except per share data)Q3 Fiscal 2025 Guidance
Total revenue
$425 - $428
As reported
16% - 17%
Constant currency
17% - 18%
Subscription revenue
$407 - $410
As reported
17% - 18%
Constant currency
17% - 18%
Non-GAAP income from operations
$117 - $120
Non-GAAP operating margin
27.5% - 28%
Non-GAAP net income
$98 - $101
Non-GAAP net income per diluted share
$0.32 - $0.33
Diluted weighted average shares outstanding
303 - 304

(In millions, except per share data)
Current Guidance
Fiscal 2025
Prior Guidance
Fiscal 2025*
Guidance Change
at Midpoint
ARR
$1,720 - $1,735
$1,720 - $1,735
$—
As reported
14% - 15%
14% - 15%
—
Constant currency
15% - 16%
15% - 16%
—
Total revenue
$1,665 - $1,675
$1,644 - $1,658
$19
As reported
16% - 17%
15% - 16%
100 bps
Constant currency
17% - 18%
16% - 17%
100 bps
Subscription revenue
$1,590 - $1,600
$1,571 - $1,585
$17
As reported
17% - 18%
16% - 17%
100 bps
Constant currency
17% - 18%
16% - 17%
100 bps
Non-GAAP income from operations
$466 - $474
$459 - $467
$7
Non-GAAP operating margin
28% - 28.25%
28%
12 bps
Non-GAAP net income
$396 - $404
$383 - $392
$13
Non-GAAP net income per diluted share
$1.31 - $1.33
$1.26 - $1.29
$0.04
Diluted weighted average shares outstanding
303 - 305
303 - 305
—
Free cash flow
$393 - $404
$386 - $398
$7
Free cash flow margin
23.5% - 24%
23.5% - 24%
—
*Prior guidance was issued on August 7, 2024.





3

Conference Call and Webcast Information
Dynatrace will host a conference call and live webcast to discuss its results and business outlook for investors and analysts at 8:00 a.m. Eastern Time today, November 7, 2024. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with conference ID# 13749514. The call will also be available live via webcast on the company’s website, ir.dynatrace.com.

An audio replay of the call will also be available until 11:59 p.m. Eastern Time on February 5, 2025, by dialing (877) 660-6853 from the U.S. and Canada, or for international callers by dialing (201) 612-7415 and entering conference ID# 13749514. In addition, an archived webcast will be available at ir.dynatrace.com.
We announce material financial information to our investors using our Investor Relations website, press releases, SEC filings and public conference calls and webcasts. We also use these channels to disclose information about the company, our planned financial and other announcements, attendance at upcoming investor and industry conferences, and for complying with our disclosure obligations under Regulation FD.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures as defined by Regulation G, including non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, and free cash flow. We also use or discuss non-GAAP financial measures in conference calls, slide presentations and webcasts.

We use these non-GAAP financial measures for financial and operational decision-making purposes, and as a means to evaluate period-to-period comparisons and liquidity. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Our non-GAAP financial measures may not provide information that is directly comparable to similarly titled metrics provided by other companies.

Non-GAAP financial measures are defined in this press release and the tables included in this press release include reconciliations of historical non-GAAP financial measures to their most directly comparable GAAP measures.

We also include non-GAAP financial measures in our financial outlook included in this press release. Reconciliations of forward-looking non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share, and free cash flow guidance to the most directly comparable GAAP measures are not available without unreasonable efforts due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs, as well as unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
Definitions - Non-GAAP and Other Metrics
Annual Recurring Revenue (ARR) is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of ARR any revenues derived from month-to-month agreements and/or product usage overage billings.
Constant Currency amounts for ARR, Total Revenue and Subscription Revenue are presented to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign exchange rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year.

4

Non-GAAP Income from Operations is defined as GAAP income from operations adjusted for the following items: share-based compensation; employer payroll taxes on employee stock transactions; amortization of intangibles; transaction, restructuring and other non-recurring or unusual items that may arise from time to time. The related margin is non-GAAP income from operations expressed as a percentage of total revenue.
Non-GAAP Net Income is defined as GAAP net income adjusted for the following items: income tax expense/benefit; non-GAAP effective cash taxes; net interest expense and income; net cash received from and paid for interest; share-based compensation; employer payroll taxes on employee stock transactions, amortization of intangibles; gains and losses on currency translation; and transaction, restructuring and other non-recurring or unusual items that may arise from time to time. Non-GAAP net income per diluted share is calculated as non-GAAP net income divided by the diluted weighted average shares outstanding used to compute GAAP net income per diluted share.
Free Cash Flow is defined as the net cash provided by or used in operating activities less capital expenditures, reflected as purchase of property and equipment and capitalized software additions in our financial statements. The related margin is free cash flow expressed as a percentage of total revenue.
About Dynatrace
Dynatrace exists to make the world's software work perfectly. Our end-to-end platform combines broad and deep observability and continuous runtime application security with Davis® hypermodal AI to provide answers and intelligent automation from data at an enormous scale. This enables innovators to modernize and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences. That's why the world's largest organizations trust the Dynatrace® platform to accelerate digital transformation.
Cautionary Language Concerning Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to benefits that we believe organizations receive from using Dynatrace and our financial and business outlook, including our financial guidance for the third quarter and full year of fiscal 2025. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our ability to maintain our revenue growth rates in future periods; market adoption of our product offerings; continued demand for, and spending on, our solutions; our ability to innovate and develop solutions that meet customer needs, including through Davis AI; the ability of our platform and solutions to effectively interoperate with customers’ IT infrastructures; our ability to acquire new customers and retain and expand our relationships with existing customers; our ability to expand our sales and marketing capabilities; our ability to compete; our ability to maintain successful relationships with partners; security breaches, other security incidents and any real or perceived errors, failures, defects or vulnerabilities in our solutions; our ability to protect our intellectual property; our ability to hire and retain necessary qualified employees to grow our business and expand our operations; our ability to successfully complete acquisitions and to integrate newly acquired businesses and offerings; the effect on our business of the macroeconomic environment, associated global economic conditions and geopolitical disruption; and other risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
5



Gartner Disclaimers and Constellation Disclosures
1) Gartner, Magic Quadrant for Observability Platforms, Gregg Siegfried, Mrudula Bangera, Matt Crossley, Padraig Byrne, 12 August 2024. Dynatrace was recognized as Compuware from 2010-2014.

2) Gartner, Critical Capabilities for Observability Platforms, Mrudula Bangera, Padraig Byrne, Matt Crossley, Gregg Siegfried, 12 August 2024.

3) Gartner, Magic Quadrant for Digital Experience Monitoring, Padraig Byrne, Matt Crossley, DB Cummings, Martin Caren, Pankaj Prasad, 21 October 2024.

The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings press release), and the opinions expressed in the Gartner Content are subject to change without notice.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.
4) 2024 Constellation Research ShortLists™ for Observability (Andy Thurai), AIOPs (Andy Thurai), and Digital Performance Management (R “Ray” Wang).
6

DYNATRACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited – In thousands, except per share data)
Three Months Ended
September 30,		Six Months Ended
September 30,
2024202320242023
Revenue:
Subscription$399,810 $334,497 $781,386 $650,951 
Service18,319 17,203 35,963 33,635 
Total revenue418,129 351,700 817,349 684,586 
Cost of revenue:
Cost of subscription55,796 44,792 109,368 87,696 
Cost of service17,595 15,675 34,397 31,217 
Amortization of acquired technology4,393 3,900 8,772 7,798 
Total cost of revenue77,784 64,367 152,537 126,711 
Gross profit340,345 287,333 664,812 557,875 
Operating expenses:
Research and development 95,366 74,084 182,944 140,366 
Sales and marketing 144,224 127,605 289,330 252,722 
General and administrative48,953 44,748 93,931 83,843 
Amortization of other intangibles4,776 5,627 9,552 11,387 
Total operating expenses293,319 252,064 575,757 488,318 
Income from operations47,026 35,269 89,055 69,557 
Interest income, net12,850 8,509 25,625 15,655 
Other expense, net(2,038)(3,075)(4,073)(2,823)
Income before income taxes57,838 40,703 110,607 82,389 
Income tax expense(13,830)(4,894)(27,979)(8,392)
Net income$44,008 $35,809 $82,628 $73,997 
Net income per share:
Basic$0.15 $0.12 $0.28 $0.25 
Diluted$0.15 $0.12 $0.27 $0.25 
Weighted average shares outstanding:
Basic298,089 293,654 297,736 292,504 
Diluted301,373 297,794 301,714 297,492 
UNAUDITED SHARE-BASED COMPENSATION
Three Months Ended
September 30,		Six Months Ended
September 30,
2024202320242023
Cost of revenue$9,714 $7,197 $17,444 $12,685 
Research and development26,607 18,177 48,187 31,441 
Sales and marketing20,750 18,877 36,772 32,876 
General and administrative14,632 13,707 26,957 21,474 
Total share-based compensation$71,703 $57,958 $129,360 $98,476 
7

DYNATRACE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
September 30, 2024March 31, 2024
(unaudited)
Assets
Current assets:
Cash and cash equivalents$907,177 $778,983 
Short-term investments97,834 57,891 
Accounts receivable, net303,341 602,739 
Deferred commissions, current106,554 98,935 
Prepaid expenses and other current assets68,672 66,749 
Total current assets1,483,578 1,605,297 
Long-term investments48,312 46,350 
Property and equipment, net52,649 53,325 
Operating lease right-of-use assets, net70,957 61,390 
Goodwill1,337,205 1,335,494 
Intangible assets, net31,701 50,995 
Deferred tax assets, net177,714 138,836 
Deferred commissions, non-current95,187 93,310 
Other assets32,350 24,782 
Total assets$3,329,653 $3,409,779 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable$17,298 $21,410 
Accrued expenses, current208,825 233,675 
Deferred revenue, current806,171 987,953 
Operating lease liabilities, current15,606 15,513 
Total current liabilities1,047,900 1,258,551 
Deferred revenue, non-current54,878 62,308 
Accrued expenses, non-current16,926 18,404 
Operating lease liabilities, non-current64,997 54,013 
Deferred tax liabilities996 1,013 
Total liabilities1,185,697 1,394,289 
Shareholders' equity:
Common shares, $0.001 par value, 600,000,000 shares authorized, 298,519,163 and 296,962,547 shares issued and outstanding at September 30, 2024 and March 31, 2024, respectively
299 297 
Additional paid-in capital2,295,796 2,249,349 
Accumulated deficit(116,129)(198,757)
Accumulated other comprehensive loss(36,010)(35,399)
Total shareholders' equity2,143,956 2,015,490 
Total liabilities and shareholders' equity$3,329,653 $3,409,779 
8

DYNATRACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited – In thousands)
Six Months Ended
September 30,
20242023
Cash flows from operating activities:
Net income$82,628 $73,997 
Adjustments to reconcile net income to cash provided by operations:
Depreciation
8,635 7,890 
Amortization
19,356 19,207 
Share-based compensation
129,360 98,476 
Deferred income taxes
(39,059)(35,166)
Other
3,133 3,019 
Net change in operating assets and liabilities:
Accounts receivable
300,077 177,689 
Deferred commissions
(7,166)8,978 
Prepaid expenses and other assets
(14,073)(22,909)
Accounts payable and accrued expenses
(30,479)(33,246)
Operating leases, net
1,465 1,333 
Deferred revenue
(199,486)(128,488)
Net cash provided by operating activities
254,391 170,780 
Cash flows from investing activities:
Purchase of property and equipment
(6,871)(13,017)
Acquisition of a business, net of cash acquired(100)(32,391)
Purchases of investments(80,024)— 
Proceeds from sales and maturities of investments40,375 — 
Net cash used in investing activities
(46,620)(45,408)
Cash flows from financing activities:
Payments of deferred consideration related to capitalized software additions(1,656)— 
Proceeds from employee stock purchase plan
10,389 9,584 
Proceeds from exercise of stock options8,773 16,619 
Repurchases of common stock
(90,107)— 
Taxes paid related to net share settlement of equity awards(11,966)— 
Net cash (used in) provided by financing activities
(84,567)26,203 
Effect of exchange rates on cash and cash equivalents4,990 (5,399)
Net increase in cash and cash equivalents128,194 146,176 
Cash and cash equivalents, beginning of period778,983 555,348 
Cash and cash equivalents, end of period$907,177 $701,524 
9

DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except percentages)
Three Months Ended September 30, 2024
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$77,784 $(9,714)$(431)$(4,393)$— $63,246 
Gross profit340,345 9,714 431 4,393 — 354,883 
Gross margin81 %85 %
Research and development95,366 (26,607)(1,305)— — 67,454 
Sales and marketing144,224 (20,750)(729)— — 122,745 
General and administrative48,953 (14,632)(306)— — 34,015 
Amortization of other intangibles4,776 — — (4,776)— — 
Income from operations$47,026 $71,703 $2,771 $9,169 $— $130,669 
Operating margin11 %31 %

Three Months Ended September 30, 2023
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$64,367 $(7,197)$(309)$(3,900)$— $52,961 
Gross profit287,333 7,197 309 3,900 — 298,739 
Gross margin82 %85 %
Research and development74,084 (18,177)(933)— — 54,974 
Sales and marketing 127,605 (18,877)(760)— 198 108,166 
General and administrative 44,748 (13,707)(299)— (1,578)29,164 
Amortization of other intangibles5,627 — — (5,627)— — 
Income from operations$35,269 $57,958 $2,301 $9,527 $1,380 $106,435 
Operating margin10 %30 %





10


DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Three Months Ended September 30,
20242023
Non-GAAP net income:
Net income$44,008 $35,809 
Income tax expense13,830 4,894 
Non-GAAP effective cash tax(30,856)(21,928)
Interest income, net(12,850)(8,509)
Cash received from interest, net12,848 8,980 
Share-based compensation71,703 57,958 
Employer payroll taxes on employee stock transactions2,771 2,301 
Amortization of intangibles9,169 9,527 
Transaction, restructuring, and other— 1,380 
Loss on currency translation2,038 3,075 
Non-GAAP net income$112,661 $93,487 
Share count:
Weighted-average shares outstanding - basic298,089 293,654 
Weighted-average shares outstanding - diluted301,373 297,794 
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic298,089 293,654 
Weighted-average shares outstanding - diluted301,373 297,794 
Non-GAAP net income per share:
Net income per share - basic$0.15 $0.12 
Net income per share - diluted$0.15 $0.12 
Non-GAAP net income per share - basic$0.38 $0.32 
Non-GAAP net income per share - diluted$0.37 $0.31 

Three Months Ended September 30,
20242023
Free cash flow:
Net cash provided by operating activities$23,650 $36,877 
Purchase of property and equipment(3,512)(2,750)
Capitalized software additions— — 
Free cash flow$20,138 $34,127 
11

DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except percentages)
Six Months Ended September 30, 2024
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$152,537 $(17,444)$(1,317)$(8,772)$— $125,004 
Gross profit664,812 17,444 1,317 8,772 — 692,345 
Gross margin81 %85 %
Research and development182,944 (48,187)(3,714)— (3)131,040 
Sales and marketing289,330 (36,772)(2,233)— 250,325 
General and administrative93,931 (26,957)(916)— 3 66,061 
Amortization of other intangibles9,552 — — (9,552)— — 
Income from operations$89,055 $129,360 $8,180 $18,324 $— $244,919 
Operating margin11 %30 %

Six Months Ended September 30, 2023
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$126,711 $(12,685)$(1,232)$(7,798)$— $104,996 
Gross profit557,875 12,685 1,232 7,798 — 579,590 
Gross margin81 %85 %
Research and development140,366 (31,441)(3,195)— — 105,730 
Sales and marketing252,722 (32,876)(2,312)— 198 217,732 
General and administrative83,843 (21,474)(765)— (3,986)57,618 
Amortization of other intangibles11,387 — — (11,387)— — 
Income from operations$69,557 $98,476 $7,504 $19,185 $3,788 $198,510 
Operating margin10 %29 %



12

DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Six Months Ended September 30,
20242023
Non-GAAP net income:
Net income$82,628 $73,997 
Income tax expense27,979 8,392 
Non-GAAP effective cash tax(57,950)(40,470)
Interest income, net(25,625)(15,655)
Cash received from interest, net24,618 14,492 
Share-based compensation129,360 98,476 
Employer payroll taxes on employee stock transactions8,180 7,504 
Amortization of intangibles18,324 19,185 
Transaction, restructuring, and other— 3,788 
Loss on currency translation4,073 2,823 
Non-GAAP net income$211,587 $172,532 
Share count:
Weighted-average shares outstanding - basic297,736 292,504 
Weighted-average shares outstanding - diluted301,714 297,492 
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic297,736 292,504 
Weighted-average shares outstanding - diluted301,714 297,492 
Non-GAAP net income per share:
Net income per share - basic$0.28 $0.25 
Net income per share - diluted$0.27 $0.25 
Non-GAAP net income per share - basic$0.71 $0.59 
Non-GAAP net income per share - diluted$0.70 $0.58 


Six Months Ended September 30,
20242023
Free cash flow:
Net cash provided by operating activities
$254,391 $170,780 
Purchase of property and equipment(6,871)(13,017)
Capitalized software additions$— — 
Free cash flow$247,520 $157,763 
13

Contacts

Investors:
Noelle Faris
VP, Investor Relations
Noelle.Faris@dynatrace.com

Media Relations:
Kristy Campbell
VP, Brand and Communications
Kristy.Campbell@dynatrace.com





14
v 1 Exhibit 99.2

 
v3.24.3
Document and Entity Information Document
Nov. 07, 2024
Entity Information [Line Items]  
Document Type 8-K
Entity Registrant Name DYNATRACE, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-39010
Entity Address, Address Line One 1601 Trapelo Road, Suite 116
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02451
City Area Code 781
Local Phone Number 530-1000
Entity Information, Former Legal or Registered Name Not Applicable
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol DT
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001773383
Amendment Flag false
Entity Tax Identification Number 47-2386428
Entity Address, City or Town Waltham,
Document Period End Date Nov. 07, 2024
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