Dynatrace Shares Drop As It Cuts FY23 Revenue Guidance; Clocks 30% Revenue Growth In Q2; Names New CFO

Dynatrace Shares Drop As It Cuts FY23 Revenue Guidance; Clocks 30% Revenue Growth In Q2; Names New CFO
  • Dynatrace, Inc DT reported second-quarter FY23 revenue growth of 30% year-on-year to $279.3 million (CC), beating the consensus of $272.4 million
  • Total ARR increased 30% Y/Y to $1.06 billion (CC). Revenues from Subscription rose 29% Y/Y to $261.3 million (CC).
  • Margins: The non-GAAP operating margin contracted 100 basis points to 26%.
  • Non-GAAP EPS of $0.22 beat the consensus of $0.18.
  • Dynatrace generated $25.1 million in free cash flow during the quarter. It held $563.4 million in cash and equivalents.
  • Outlook: Dynatrace sees Q3 FY23 revenue of $283 million- $286 million versus the consensus of $285.4 million.
  • Dynatrace sees non-GAAP EPS of $0.21 - $0.22, above the consensus of $0.19.
  • For FY23, Dynatrace expects total revenue of $1.119 billion - $1.126 billion, down from the prior view of $1.125 billion - $1.136 billion and below the consensus of $1.13 billion.
  • Dynatrace sees a non-GAAP EPS of $0.81 - $0.83, up from the previous $0.73 - $0.76 and above the consensus of $0.75.
  • CFO Transition: Dynatrace appointed Jim Benson as Chief Financial Officer, effective November 15
  • Benson will succeed Kevin Burns, who announced in May 2022 his intention to transition out of Dynatrace by the end of the calendar year.
  • Benson most recently served as executive vice president and CFO at Akamai Technologies, Inc AKAM from 2012 until 2019. Since then, Benson has held several board seats and is currently a Board member at Grange Insurance, Temenos, and Xplor.
  • Price Action: DT shares traded lower by 6.35% at $32.00 on the last check Wednesday.
  • Photo Via Wikimedia Commons

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