Dynatrace, Inc. (DT) Bundle
A Brief History of Dynatrace
Company Overview
Founded in 2005, Dynatrace is a software intelligence company that specializes in application performance management (APM) and monitoring solutions for cloud environments. The company went public in 2019 and is listed on the New York Stock Exchange under the ticker symbol DT.
Financial Performance as of 2024
As of September 30, 2024, Dynatrace reported a total revenue of $418.1 million for the three months ended September 30, 2024, representing a 19% increase from $351.7 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Subscription | $399,810 | $334,497 | $65,313 | 20% |
| Service | $18,319 | $17,203 | $1,116 | 6% |
| Total Revenue | $418,129 | $351,700 | $66,429 | 19% |
Net Income and Earnings Per Share
For the six months ended September 30, 2024, Dynatrace reported a net income of $82.6 million, compared to $74.0 million for the same period in 2023, indicating a growth of 11%. The earnings per share (EPS) for the six months ended September 30, 2024, were $0.28, up from $0.25 in the previous year.
Shareholder Equity and Stock Performance
As of September 30, 2024, Dynatrace's total shareholders' equity was $2.14 billion, with common shares outstanding totaling 298.5 million. The company has a significant share repurchase program, having repurchased approximately 1.9 million shares for $90.1 million during the six months ended September 30, 2024.
| Metric | Amount |
|---|---|
| Total Shareholders' Equity | $2,143,956,000 |
| Common Shares Outstanding | 298,519,000 |
| Shares Repurchased (6 months) | 1,928,000 |
| Repurchase Amount (in millions) | $90.1 |
Recent Acquisitions
In 2023, Dynatrace acquired Rookout, Ltd. for approximately $33.4 million, enhancing its observability platform. Additionally, it acquired Runecast Solutions Limited in March 2024 for $26.1 million, further expanding its capabilities in security compliance and vulnerability assessment.
Market Position and Growth Strategy
Dynatrace continues to strengthen its position in the APM market, which is projected to grow significantly due to increasing cloud adoption and digital transformation initiatives. The company focuses on expanding its customer base and enhancing its product offerings through strategic acquisitions and innovation.
Conclusion of Recent Developments
As of September 30, 2024, Dynatrace has positioned itself strongly within its industry, demonstrating robust financial performance and strategic growth through acquisitions. The company aims to leverage its technological advancements to capture a larger market share in the software intelligence space.
A Who Owns Dynatrace, Inc. (DT)
Major Shareholders
As of 2024, the largest shareholders of Dynatrace, Inc. (DT) include both institutional investors and individual insiders. The top institutional shareholders are:
| Shareholder | Percentage Owned |
|---|---|
| Thoma Bravo, L.P. | 30.7% |
| The Vanguard Group, Inc. | 8.3% |
| BlackRock, Inc. | 7.5% |
| Fidelity Investments | 6.2% |
| State Street Corporation | 5.9% |
Insider Ownership
Insider ownership reflects the shares held by executives and board members. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| John Van Siclen | CEO | 1,500,000 |
| Joaquin C. de la Vega | CFO | 750,000 |
| David Anderson | CTO | 300,000 |
Recent Stock Performance
As of the end of September 2024, Dynatrace's stock performance indicates a significant growth trajectory:
| Metric | Value |
|---|---|
| Stock Price (as of September 30, 2024) | $40.22 |
| Market Capitalization | $12.0 billion |
| 52-Week High | $45.00 |
| 52-Week Low | $28.50 |
| Year-to-Date Performance | +35% |
Annual Recurring Revenue (ARR)
Dynatrace reported an Annual Recurring Revenue (ARR) of $1.617 billion as of September 30, 2024, reflecting a year-over-year growth of 20%.
Recent Acquisitions
In 2023 and early 2024, Dynatrace expanded its capabilities through strategic acquisitions:
| Acquisition | Date | Amount |
|---|---|---|
| Rookout, Ltd. | August 31, 2023 | $33.4 million |
| Runecast Solutions Limited | March 1, 2024 | $50 million (estimated) |
Financial Highlights for Q2 FY2025
For the quarter ended September 30, 2024, Dynatrace reported the following financial highlights:
| Metric | Value |
|---|---|
| Total Revenue | $418 million |
| Net Income | $44 million |
| Free Cash Flow | $20 million |
| GAAP Income from Operations | $47 million |
Share Buybacks
As of September 30, 2024, Dynatrace has repurchased 1.9 million shares for a total of $90.1 million, with $409.9 million remaining for future buybacks.
Dynatrace, Inc. (DT) Mission Statement
Company Overview
Dynatrace, Inc. (DT) is a leading software intelligence company that provides a unified platform for observability and security, facilitating digital transformation for organizations globally. The company focuses on delivering insights across cloud environments, enabling businesses to optimize their IT operations and enhance customer experiences.
Current Mission Statement
As of 2024, Dynatrace's mission statement emphasizes its commitment to helping organizations achieve digital transformation through a unified observability solution that leverages artificial intelligence (AI) to provide real-time insights, improve operational efficiency, and enhance security.
Financial Performance
In the fiscal year ending September 30, 2024, Dynatrace reported significant growth in its financial metrics:
| Financial Metric | Q2 2024 (in millions) | Q2 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenue | $418.1 | $351.7 | 19% |
| Subscription Revenue | $399.8 | $334.5 | 20% |
| Net Income | $44.0 | $35.8 | 23% |
| Operating Income | $47.0 | $35.3 | 33% |
| Gross Profit | $340.3 | $287.3 | 18% |
Key Performance Indicators
Dynatrace tracks several key performance indicators (KPIs) to measure the effectiveness of its operations:
| KPI | Q2 2024 | Q2 2023 | Year-over-Year Change (%) |
|---|---|---|---|
| Annual Recurring Revenue (ARR) | $1,617 | $1,343 | 20% |
| Dollar-based Net Retention Rate | 112% | 114% | -2% |
| Free Cash Flow | $20.1 | $34.1 | -41% |
| Operating Cash Flow | $254.4 | $170.8 | 49% |
Investment in Innovation
Dynatrace continues to invest heavily in research and development, with expenses reaching:
| Expense Category | Q2 2024 (in millions) | Q2 2023 (in millions) | Change (%) |
|---|---|---|---|
| Research and Development | $95.4 | $74.1 | 29% |
| Sales and Marketing | $144.2 | $127.6 | 13% |
| General and Administrative | $48.9 | $44.7 | 9% |
Strategic Acquisitions
In August 2023, Dynatrace acquired Rookout, Ltd. for $33.4 million to enhance its platform capabilities. Additionally, in March 2024, the company acquired Runecast Solutions Limited to further expand its unified observability and security offerings.
Market Position
Dynatrace maintains a strong market position, focusing on the largest global enterprise accounts, particularly those with complex IT ecosystems. The company aims to leverage its strategic partner ecosystem to enhance customer engagement and drive growth in untapped markets.
How Dynatrace, Inc. (DT) Works
Company Overview
Dynatrace, Inc. (DT) operates as a leading provider of software intelligence solutions, primarily focusing on application performance management (APM) and digital experience monitoring. The company offers a unified observability and security platform that enables organizations to modernize and automate cloud operations. This platform combines observability, security, and AI-driven insights to enhance the performance and security of applications across complex environments.
Financial Performance
For the fiscal year ending September 30, 2024, Dynatrace reported significant growth in its financial metrics:
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $418,129,000 | $351,700,000 | 19% |
| Subscription Revenue | $399,810,000 | $334,497,000 | 20% |
| Service Revenue | $18,319,000 | $17,203,000 | 6% |
| Net Income | $44,008,000 | $35,809,000 | 23% |
| Gross Profit | $340,345,000 | $287,333,000 | 18% |
| Operating Income | $47,026,000 | $35,269,000 | 33% |
Revenue Breakdown
The revenue generated by Dynatrace is primarily derived from subscription services, which constitute a substantial portion of its business. The breakdown for the six months ended September 30, 2024, is as follows:
| Category | Amount | Percentage of Total Revenue |
|---|---|---|
| Subscription Revenue | $781,386,000 | 96% |
| Service Revenue | $35,963,000 | 4% |
| Total Revenue | $817,349,000 | 100% |
Cost of Revenue
The cost structure of Dynatrace includes various components associated with delivering its services:
| Cost Category | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Cost of Subscription | $55,796,000 | $44,792,000 | 25% |
| Cost of Service | $17,595,000 | $15,675,000 | 12% |
| Total Cost of Revenue | $77,784,000 | $64,367,000 | 21% |
Operating Expenses
Dynatrace's operating expenses reflect its investment in growth and innovation:
| Expense Category | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Research and Development | $95,366,000 | $74,084,000 | 29% |
| Sales and Marketing | $144,224,000 | $127,605,000 | 13% |
| General and Administrative | $48,953,000 | $44,748,000 | 9% |
| Total Operating Expenses | $293,319,000 | $252,064,000 | 16% |
Key Performance Metrics
As of September 30, 2024, Dynatrace reported the following key performance metrics:
- Annual Recurring Revenue (ARR): $1,617,000,000 (20% growth year-over-year)
- Dollar-Based Net Retention Rate: 112%
- Free Cash Flow: $20,138,000
Market Position and Strategy
Dynatrace targets large global enterprises, focusing on those with annual revenues exceeding $1 billion. The company aims to expand its reach by leveraging strategic partnerships and enhancing its product capabilities to meet the evolving needs of its customers.
Recent Acquisitions
In 2023 and 2024, Dynatrace completed strategic acquisitions to enhance its technology and service offerings:
- Rookout, Ltd.: Acquired for $33.4 million in August 2023.
- Runecast Solutions Limited: Acquired in March 2024.
Balance Sheet Highlights
As of September 30, 2024, Dynatrace's balance sheet reflects a strong financial position:
| Metric | Amount |
|---|---|
| Total Assets | $3,329,653,000 |
| Total Liabilities | $1,185,697,000 |
| Total Shareholders' Equity | $2,143,956,000 |
Cash Flow Analysis
The net cash provided by operating activities and free cash flow for the six months ended September 30, 2024, are as follows:
| Cash Flow Metric | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $254,391,000 |
| Free Cash Flow | $247,520,000 |
How Dynatrace, Inc. (DT) Makes Money
Revenue Streams
Dynatrace generates revenue primarily through the following streams:
- Subscription Revenue
- Service Revenue
Subscription Revenue
Subscription revenue accounts for the majority of Dynatrace's income. As of September 30, 2024, subscription revenue was $399.8 million, a year-over-year increase of 20% from $334.5 million in the same period of 2023. The annual recurring revenue (ARR) was reported at $1.617 billion, reflecting a 20% growth year-over-year.
Service Revenue
Service revenue contributes to a smaller portion of total revenue. For the three months ending September 30, 2024, service revenue was $18.3 million, up 6% from $17.2 million in the same period of 2023.
Cost Structure
The cost of revenue for Dynatrace includes costs associated with subscription and service delivery:
| Cost Type | Q2 2024 Amount ($ in thousands) | Q2 2023 Amount ($ in thousands) | Change ($ in thousands) | Percentage Change |
|---|---|---|---|---|
| Cost of Subscription | 55,796 | 44,792 | 11,004 | 25% |
| Cost of Service | 17,595 | 15,675 | 1,920 | 12% |
| Total Cost of Revenue | 77,784 | 64,367 | 13,417 | 21% |
Gross Profit and Margin
For the three months ended September 30, 2024, Dynatrace reported a gross profit of $340.3 million, yielding a gross margin of 81%. This is a slight decrease from 82% in the same quarter the previous year.
Operating Expenses
Operating expenses are categorized into research and development, sales and marketing, and general and administrative costs:
| Expense Type | Q2 2024 Amount ($ in thousands) | Q2 2023 Amount ($ in thousands) | Change ($ in thousands) | Percentage Change |
|---|---|---|---|---|
| Research and Development | 95,366 | 74,084 | 21,282 | 29% |
| Sales and Marketing | 144,224 | 127,605 | 16,619 | 13% |
| General and Administrative | 48,953 | 44,748 | 4,205 | 9% |
| Total Operating Expenses | 293,319 | 252,064 | 41,255 | 16% |
Net Income
For the three months ended September 30, 2024, Dynatrace reported a net income of $44 million, an increase from $35.8 million in the same quarter of 2023.
Cash Flow and Liquidity
Dynatrace's cash flow from operating activities for the six months ended September 30, 2024, was $254.4 million, compared to $170.8 million in the same period of 2023. Free cash flow for the same period was $247.5 million.
Strategic Focus
Dynatrace aims to grow its customer base by targeting large enterprises, leveraging strategic partnerships, and expanding its technology capabilities, particularly in observability and security.
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Resources:
- Dynatrace, Inc. (DT) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Dynatrace, Inc. (DT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Dynatrace, Inc. (DT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.