Dynatrace, Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Dynatrace, Inc. has filed its Q3 FY2024 10-Q report, detailing financial performance and operational status.</b>

AI Summary

Dynatrace, Inc. (DT) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. Dynatrace, Inc. filed its 10-Q report for the period ending December 31, 2023. The filing covers the third quarter of fiscal year 2024. The company's fiscal year ends on March 31st. Dynatrace, Inc. is headquartered in Waltham, MA. The Standard Industrial Classification code for the company is 7372 (SERVICES-PREPACKAGED SOFTWARE).

Why It Matters

For investors and stakeholders tracking Dynatrace, Inc., this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial data for Dynatrace, Inc., crucial for evaluating the company's performance and future prospects. Understanding the details within this report is essential for making informed investment decisions regarding Dynatrace, Inc. stock.

Risk Assessment

Risk Level: medium — Dynatrace, Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information and does not inherently signal significant positive or negative developments beyond the disclosed figures.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to assess Dynatrace's revenue growth, profitability, and any emerging trends.

Key Numbers

• 2023-12-31 — Period End Date (Fiscal period covered by the 10-Q)
• 2024-02-08 — Filing Date (Date the 10-Q was filed with the SEC)
• 0331 — Fiscal Year End (Dynatrace's fiscal year end date)

Key Players & Entities

• Dynatrace, Inc. (company) — Filer name
• 2023-12-31 (date) — Period of report
• 2024-02-08 (date) — Filed as of date
• Waltham, MA (location) — Business address
• 7372 (other) — Standard Industrial Classification
• 0001773383-24-000011 (other) — Accession Number

Forward-Looking Statements

• Dynatrace will continue to see strong double-digit growth in subscription revenue in the next fiscal quarter. (Dynatrace, Inc.) — medium confidence, target: 2024-03-31

FAQ

Industry Context

Dynatrace operates in the software industry, specifically focusing on application performance monitoring and observability solutions.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial reports to the SEC.

What Investors Should Do

1. Analyze the revenue and net income figures for the reported quarter and year-to-date periods.
2. Examine any disclosures regarding changes in accounting policies or significant business developments.
3. Compare the financial results to previous periods and analyst expectations.

Year-Over-Year Comparison

This is the 10-Q filing for the period ending December 31, 2023. Specific comparative financial data from the prior year's quarter or year-to-date is not yet available in this header information.

Key Financial Figures

• $0.001 — ich registered Common stock, par value $0.001 per share DT New York Stock Exchange

Filing Documents

• dt-20231231.htm (10-Q) — 1362KB
• secondamendmentagreement-e.htm (EX-10.1) — 16KB
• deferredcompensationplan-e.htm (EX-10.2) — 231KB
• deferredcompensationplanad.htm (EX-10.3) — 303KB
• exhibit311todynatraceformf.htm (EX-31.1) — 19KB
• exhibit312todynatraceformf.htm (EX-31.2) — 19KB
• exhibit321todynatraceformf.htm (EX-32.1) — 12KB
• 0001773383-24-000011.txt (&nbsp;) — 6856KB
• dt-20231231.xsd (EX-101.SCH) — 36KB
• dt-20231231_cal.xml (EX-101.CAL) — 67KB
• dt-20231231_def.xml (EX-101.DEF) — 210KB
• dt-20231231_lab.xml (EX-101.LAB) — 623KB
• dt-20231231_pre.xml (EX-101.PRE) — 384KB
• dt-20231231_htm.xml (XML) — 727KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of December 31, 2023 and March 31, 2023 2 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2023 and 2022 3 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended December 31, 2023 and 2022 4 Condensed Consolidated Statements of Shareholders' Equity for the Three and Nine Months Ended December 31, 2023 and 2022 5 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2023 and 2022 7 Notes to Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 31

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 57 Item 3. Default Upon Senior Securities 57 Item 4. Mine Safety Disclosures 57 Item 5. Other Information 57 Item 6. Exhibits 58

Signatures

Signatures 59 1

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DYNATRACE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) December 31, 2023 March 31, 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 782,649 $ 555,348 Accounts receivable, net 361,653 442,518 Deferred commissions, current 90,059 83,029 Prepaid expenses and other current assets 52,301 37,289 Total current assets 1,286,662 1,118,184 Property and equipment, net 49,408 53,576 Operating lease right-of-use assets, net 65,895 68,074 Goodwill 1,312,691 1,281,812 Other intangible assets, net 54,118 63,599 Deferred tax assets, net 129,119 79,822 Deferred commissions, non-current 79,724 86,232 Other assets 21,596 14,048 Total assets $ 2,999,213 $ 2,765,347 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 13,230 $ 21,953 Accrued expenses, current 171,929 188,380 Deferred revenue, current 757,141 811,058 Operating lease liabilities, current 16,288 15,652 Total current liabilities 958,588 1,037,043 Deferred revenue, non-current 38,508 34,423 Accrued expenses, non-current 29,918 29,212 Operating lease liabilities, non-current 58,002 59,520 Deferred tax liabilities 321 280 Total liabilities 1,085,337 1,160,478 Commitments and contingencies (Note 9) Shareholders' equity: Common shares, $ 0.001 par value, 600,000,000 shares authorized, 295,777,477 and 290,411,108 shares issued and outstanding at December 31, 2023 and March 31, 2023, respectively 296 290 Additional paid-in capital 2,186,766 1,989,797 Accumulated deficit ( 236,701 ) ( 353,389 ) Accumulated other comprehensive loss ( 36,485 ) ( 31,829 ) Total shareholders' equity 1,913,876 1,604,869 Total liabilities and shareholders' equity $ 2,999,213 $ 2,765,347 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 DYNATRACE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Una

Business

Business Dynatrace, Inc. ("Dynatrace", or the "Company") designed its unified observability and security platform with analytics and automation at its core to address the growing complexity faced by technology and digital business teams as these enterprises further embrace the cloud to effect their digital transformation. Artificial intelligence and continuous automation deliver precise answers about the performance and security of applications, the underlying infrastructure, and the experience of its customers' users that enable organizations to innovate faster, operate more efficiently, and improve user experiences for consistently better business outcomes. Fiscal year The Company's fiscal year ends on March 31. References to fiscal 2024, for example, refer to the fiscal year ending March 31, 2024. 2. Significant Accounting Policies Basis of presentation and consolidation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. All intercompany balances and transactions have been eliminated in the accompanying condensed consolidated financial statements. Unaudited interim consolidated financial information The accompanying interim condensed consolidated balance sheet as of December 31, 2023 and the interim condensed consolidated statements of operations, statements of comprehensive income, and statements of shareholders' equity for the three and nine months ended December 31, 2023 and 2022, statements of cash flows for the nine months ended December 31, 2023 and 2022, and the related disclosures, are unaudited. In management's opinion, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all normal and recurr