Dynatrace Reports First Quarter of Fiscal Year 2021 Financial Results

  • Subscription revenue of $144.4 million, up 34% year-over-year, 37% on a constant currency basis
  • ARR of $601.4 million, up 37% year-over-year, 39% on a constant currency basis
  • GAAP EPS of $0.05 and non-GAAP EPS of $0.13

WALTHAM, Mass.--(BUSINESS WIRE)-- Dynatrace (NYSE: DT), the market-leading software intelligence provider, purpose-built for dynamic multiclouds, today released financial results for the first quarter of its fiscal 2021 ended June 30, 2020.

“Dynatrace reported strong first quarter results across our key operating measures,” said John Van Siclen, Dynatrace’s CEO. “We continued to see digital transformation projects accelerate as customers drive to do much more with less time, resource and cost. Our essential role in providing intelligent observability into the dynamic multicloud ecosystems underpinning these transformations differentiates us from our competitors and positions us well for continued growth and success moving forward.”

First Quarter Fiscal 2021 and Other Recent Business Highlights:
All growth rates are compared to the first quarter of fiscal 2020 unless otherwise noted.

Financial Highlights:

  • Total Revenue of $155.5 million, an increase of 27% as reported, and 30% on a constant currency basis
  • Total ARR of $601.4 million, an increase of 37% as reported, and 39% on a constant currency basis
  • Subscription revenue of $144.4 million, an increase of 34% as reported, and 37% on a constant currency basis, and representing 93% of total revenue
  • GAAP Operating Income of $24.1 million and Non-GAAP Operating Income of $50.8 million
  • GAAP EPS of $0.05 and non-GAAP EPS of $0.13

Business Highlights:

  • Enhanced Kubernetes support with full-stack infrastructure and cloud native application observability unified and analyzed by Davis®, the Dynatrace® AI-engine. Now, dynamic, multicloud Kubernetes clusters can be easily understood, managed and optimized for smoother migrations, greater scalability, and faster application innovation.
  • Achieved FedRAMP authorization at Moderate Impact Level opening wider access to US government digital transformation projects. According to IDC1, the US government is expected to spend $94B on digital transformation by 2023.
  • Rated the observability platform leader by G2 reviewers - including #1 rankings across Cloud Infrastructure Monitoring, AIOps Platforms, Application Performance Monitoring, Container Monitoring, Digital Experience Monitoring, and Session Replay categories.

First Quarter 2021 Financial Highlights

(Unaudited – in thousands, except per share amounts)

 

 

Three Months Ended June 30,

 

2020

 

2019

Annualized recurring revenue

$

601,376

 

$

437,622

Year-over-Year Increase

37%

 

 

 

 

 

Annualized recurring revenue - constant currency (*)

$

609,011

 

$

437,622

Year-over-Year Increase

39%

 

 

 

 

 

 

Revenues:

 

 

 

Total revenue

$

155,508

 

$

122,550

Year-over-Year Increase

27%

 

 

 

 

 

 

Total revenue - constant currency (*)

$

159,084

 

$

122,550

Year-over-Year Increase

30%

 

 

 

 

 

 

Subscription revenue

$

144,357

 

$

108,128

Year-over-Year Increase

34%

 

 

 

 

 

 

Subscription revenue - constant currency (*)

$

147,681

 

108,128

Year-over-Year Increase

37%

 

 

 

 

 

 

Non-GAAP operating income (*)

$

50,828

 

$

27,097

Non-GAAP operating margin (*)

33%

 

22%

 

 

 

 

Non-GAAP net income (*)

$

36,938

 

$

9,307

 

 

 

 

Non-GAAP net income per share - diluted

$

0.13

 

$

0.04

 

 

 

 

Non-GAAP shares outstanding - diluted

284,309

 

238,619

 

 

 

 

Unlevered Free Cash Flow (*)

$

36,950

 

$

45,798

* Use of Non-GAAP Financial Measures

In our earnings press releases, conference calls, slide presentations, and webcasts, we may use or discuss non-GAAP financial measures, as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investors section of our website at https://ir.dynatrace.com.

Financial Outlook

Based on information available, as of July 29, 2020, Dynatrace is issuing guidance for the second quarter and raising full year fiscal 2021 as follows:

Second Quarter of Fiscal Year 2021:

  • Total revenue is expected to be in the range of $159.0 million to $161.0 million, 23% to 24% growth as reported, and 25% to 26% on a constant currency basis
  • Subscription revenue is expected to be in the range of $149.0 million to $150.5 million, 29% to 30% growth as reported, 30% to 32% on a constant currency basis
  • Non-GAAP operating income is expected to be in the range of $43.0 million to $45.0 million
  • Non-GAAP net income is expected to be in the range of $27.0 million to $28.5 million
  • Non-GAAP net income per diluted share is expected to be in the range of $0.09 to $0.10, based on a range of 288 million to 289 million diluted weighted-average shares outstanding

Full Year Fiscal 2021:

  • Total revenue is expected to be in the range of $646.0 million to $656.0 million, 18% to 20% growth as reported, and 20% to 22% on a constant currency basis
  • Subscription revenue is expected to be in the range of $603.0 million to $612.0 million, 24% to 25% growth as reported, 26% to 27% on a constant currency basis
  • Total ARR is expected to be in the range of $698.0 million to $708.0 million, 22% to 24% growth as reported, 23% to 25% on a constant currency basis
  • Non-GAAP operating income is expected to be in the range of $166.0 million to $175.0 million
  • Non-GAAP net income is expected to be in the range of $133.0 million to $141.0 million
  • Non-GAAP net income per diluted share is expected to be in the range of $0.46 to $0.49, based on a range of 288 million to 290 million diluted weighted-average shares outstanding
  • Total unlevered free cash flow is expected to be in the range of $187.0 million to $195.0 million, 29% to 30% of revenue

Our guidance is based on foreign exchange rates as of June 30, 2020 for entities reporting in currencies other than U.S. Dollars.

While we believe we are in a strong financial position to weather the impact to our business from COVID-19, many of our customers and prospects are operating under very challenging circumstances and may reduce or re-evaluate their spend. As such, in our second quarter and full year 2021 guidance we factor in the expected impacts of COVID-19 on our business and results of operations based on information available to us today. Our outlook assumes a continued challenging economic environment and incorporates a wider range of outcomes for the remainder of the fiscal year. Significant variation from these assumptions could cause us to raise, lower or modify our expectations and our guidance, and we undertake no obligation to update our assumptions, expectations or our guidance. These statements are forward-looking, and actual results may differ materially, as further discussed below under the heading “Cautionary Language Concerning Forward-Looking Statements”.

Reconciliation of non-GAAP operating income, non-GAAP net income, non-GAAP net income per share and unlevered free cash flow guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis 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 stock-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.

These statements are forward-looking and actual results may differ materially. Refer to the section under the heading Forward-Looking Statements below for information on the factors that could cause our actual results to differ materially.

Conference Call and Webcast Information

Dynatrace will host a conference call today, July 29, 2020, to discuss its results and business outlook at 8:00 a.m. Eastern Time. The call will be accessible by telephone at 833-714-0933 (domestic) or 833-714-0959 (international). The call will also be available live via webcast on the Company’s website at https://ir.dynatrace.com. A telephone replay of the conference call will be available at 800-585-8367 or 416-621-4642 (access code 1137277) until August 12, 2020. A webcast replay will be available at https://ir.dynatrace.com.

The company has used, and intends to continue to use, the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.

Non-GAAP Financial Measures & Key Metrics

In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures.

Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Dynatrace considers these non-GAAP financial measures to be important because they provide useful indicators of its performance and liquidity measures. These are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In addition, investors often use similar measures to evaluate the performance of a company. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company’s operating performance. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the consolidated financial statements.

Dynatrace presents constant currency amounts for Revenue and Annual Recurring Revenue to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency 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. Dynatrace provides this non-GAAP financial information to aid investors in better understanding our performance.

Adjusted EBITDA is defined as Net Income (loss) adjusted by removing the impact of our capital structure (net interest income or expense from our outstanding debt), asset base (depreciation and amortization), tax consequences, restructuring and other gains and losses, transaction and sponsor related costs, gains and losses on foreign currency and stock-based compensation.

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 Total ARR any revenues derived from month-to-month agreements and/or product usage overage billings.

Dynatrace Net Expansion Rate is defined as the Dynatrace® ARR at the end of a reporting period for the cohort of Dynatrace® accounts as of one year prior to the date of calculation, divided by the Dynatrace® ARR one year prior to the date of calculation for that same cohort. This calculation excludes the benefit of Dynatrace® ARR resulting from the conversion of Classic products to the Dynatrace® platform.

Dynatrace customers are defined as accounts, as identified by a unique account identifier, that generate at least $10,000 of Dynatrace® ARR as of the reporting date. In infrequent cases, a single large organization may comprise multiple customer accounts when there are distinct divisions, departments or subsidiaries that operate and make purchasing decisions independently from the parent organization. In cases where multiple customer accounts exist under a single organization, each customer account is counted separately based on a mutually exclusive accounting of ARR.

Adjusted EBITDA/Net Debt Leverage Ratio is defined as our Net Debt divided by our trailing twelve month Adjusted EBITDA. Net Debt is defined as total principal less cash and cash equivalents.

Unlevered Free Cash Flow is defined as net cash provided by (used in) operating activities and adjusted to exclude cash paid for interest (net of tax), non-recurring restructuring and acquisition related costs, along with costs associated with one-time offerings and filings, less cash used in investing activities for acquisition of property and equipment. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.

About Dynatrace

Dynatrace provides software intelligence to simplify cloud complexity and accelerate digital transformation. With advanced observability, AI, and continuous automation, our all-in-one platform provides precise answers about the performance of applications, the underlying infrastructure and the experience of all users to enable organizations to innovate faster, collaborate efficiently, and deliver more value with dramatically less effort. That’s why many of the world’s largest enterprises trust Dynatrace to modernize and automate cloud operations, release better software faster, and deliver unrivaled digital experiences. Curious to see how you can simplify your cloud? Let us show you. Visit our trial page for a free 15-day Dynatrace trial. To learn more about how Dynatrace can help your business, visit https://www.dynatrace.com, visit our blog and follow us on Twitter @dynatrace.

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 regarding management’s expectations of future financial and operational performance and operational expenditures, expected growth, and business outlook, including our financial guidance for the second fiscal quarter and full year 2021, and statements regarding the size of our market and our positioning for capturing a larger share of our market. 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 “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, the effect of the COVID-19 pandemic on our business operations and demand for our products as well as its impact on general economic and financial market conditions, our ability to maintain our subscription revenue growth rates in future periods, our ability to service our substantial level of indebtedness, market adoption of software intelligence solutions for application performance monitoring, digital experience monitoring and infrastructure monitoring, continued spending on and demand for software intelligence solutions, our ability to maintain and acquire new customers, our ability to differentiate our platform from competing products and technologies; our ability to successfully recruit and retain highly-qualified personnel; the price volatility of our common stock, and other risks set forth under the caption “Risk Factors” in our Form 10-K filed on May 27, 2020 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.

DYNATRACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited – In thousands, except per share amounts)

 

 

Three Months Ended
June 30,

 

2020

 

2019

Revenue:

 

 

 

Subscription

$

144,357

 

 

$

108,128

 

License

638

 

 

3,784

 

Service

10,513

 

 

10,638

 

Total revenue

155,508

 

 

122,550

 

Cost of revenue:

 

 

 

Cost of subscription

16,706

 

 

16,177

 

Cost of service

8,010

 

 

8,809

 

Amortization of acquired technology

3,826

 

 

4,557

 

Total cost of revenue

28,542

 

 

29,543

 

Gross profit

126,966

 

 

93,007

 

 

 

 

 

Operating expenses:

 

 

 

Research and development

23,505

 

 

25,659

 

Sales and marketing

49,163

 

 

58,215

 

General and administrative

21,527

 

 

31,882

 

Amortization of other intangibles

8,686

 

 

10,142

 

Restructuring and other

(21

)

 

115

 

Total operating expenses

102,860

 

 

126,013

 

Income (loss) from operations

24,106

 

 

(33,006

)

Interest expense, net

(4,113

)

 

(19,186

)

Other income, net

19

 

 

94

 

Income (loss) before income taxes

20,012

 

 

(52,098

)

Income tax (expense) benefit

(7,147

)

 

2,943

 

Net income (loss)

$

12,865

 

 

$

(49,155

)

Net income (loss) per share:

 

 

 

Basic

$

0.05

 

 

$

(0.21

)

Diluted

$

0.05

 

 

$

(0.21

)

Weighted average shares outstanding:

 

 

 

Basic

279,069

 

 

237,693

 

Diluted

284,309

 

 

237,693

 

 

UNAUDITED SHARE-BASED COMPENSATION

 

 

Three Months Ended June 30,

 

2020

 

2019

Cost of revenue

$

1,498

 

 

$

3,309

 

Research and development

2,418

 

 

7,127

 

Sales and marketing

5,405

 

 

15,104

 

General and administrative

3,351

 

 

15,885

 

Total share-based compensation expense

$

12,672

 

 

$

41,425

 

DYNATRACE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

 

June 30, 2020

 

March 31, 2020

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

250,377

 

 

$

213,170

 

Accounts receivable, net

93,763

 

 

157,058

 

Deferred commissions, current

39,080

 

 

38,509

 

Prepaid expenses and other current assets

58,716

 

 

61,188

 

Total current assets

441,936

 

 

469,925

 

Property and equipment, net

33,673

 

 

31,508

 

Operating lease right-of-use asset, net

44,209

 

 

 

Goodwill

1,270,986

 

 

1,270,733

 

Other intangible assets, net

188,717

 

 

201,592

 

Deferred tax assets, net

21,181

 

 

20,460

 

Deferred commissions, non-current

37,778

 

 

39,736

 

Other assets

8,350

 

 

8,126

 

Total assets

$

2,046,830

 

 

$

2,042,080

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

3,767

 

 

$

11,112

 

Accrued expenses, current

74,907

 

 

93,728

 

Deferred revenue, current

352,803

 

 

384,060

 

Operating lease liabilities, current

9,712

 

 

 

Total current liabilities

441,189

 

 

488,900

 

Deferred revenue, non-current

49,580

 

 

60,711

 

Accrued expenses, non-current

18,062

 

 

20,987

 

Operating lease liabilities, non-current

38,970

 

 

 

Long-term debt

510,452

 

 

509,985

 

Total liabilities

1,058,253

 

 

1,080,583

 

Commitments and contingencies

 

 

 

Shareholders' equity:

 

 

 

Common shares, $0.001 par value, 600,000,000 shares authorized,
281,055,994 and 280,853,040 shares issued and outstanding
at June 30, 2020 and March 31, 2020, respectively

281

 

 

281

 

Additional paid-in capital

1,589,598

 

 

1,573,347

 

Accumulated deficit

(580,855

)

 

(594,026

)

Accumulated other comprehensive loss

(20,447

)

 

(18,105

)

Total shareholders' equity

988,577

 

 

961,497

 

Total liabilities and shareholders' equity

$

2,046,830

 

 

$

2,042,080

 

DYNATRACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited – In thousands)

 

 

Three Months Ended
June 30,

 

2020

 

2019

Cash flows from operating activities:

 

 

 

Net income (loss)

$

12,865

 

 

$

(49,155

)

Adjustments to reconcile net income (loss) to cash provided by operations:

 

 

 

Depreciation

1,590

 

 

2,034

 

Amortization

13,019

 

 

15,081

 

Share-based compensation

12,672

 

 

41,425

 

Deferred income taxes

(175

)

 

(8,877

)

Other

466

 

 

416

 

Net change in operating assets and liabilities:

 

 

 

Accounts receivable

64,265

 

 

34,116

 

Deferred commissions

2,229

 

 

(720

)

Prepaid expenses and other assets

275

 

 

(924

)

Accounts payable and accrued expenses

(23,212

)

 

(8,464

)

Operating leases, net

311

 

 

 

Deferred revenue

(47,297

)

 

9,235

 

Net cash provided by operating activities

37,008

 

 

34,167

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchase of property and equipment

(4,418

)

 

(4,151

)

Capitalized software additions

(131

)

 

(333

)

Net cash used in investing activities

(4,549

)

 

(4,484

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Repayment of term loans

 

 

(19,000

)

Equity repurchases

(13

)

 

(53

)

Proceeds from employee stock purchase plan

3,592

 

 

 

Installments related to acquisition

 

 

(4,694

)

Net cash provided by (used in) financing activities

3,579

 

 

(23,747

)

 

 

 

 

Effect of exchange rates on cash and cash equivalents

1,169

 

 

203

 

 

 

 

 

Net increase in cash and cash equivalents

37,207

 

 

6,139

 

 

 

 

 

Cash and cash equivalents, beginning of period

213,170

 

 

51,314

 

Cash and cash equivalents, end of period

$

250,377

 

$

57,453

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited - In thousands)

 

 

Three Months Ended June 30, 2020

 

GAAP

 

Share-based
compensation

 

Amortization
of other
intangibles

 

Restructuring
& other

 

Non-GAAP

Non-GAAP operating income:

 

 

 

 

 

 

 

 

 

Cost of revenue

$

28,542

 

 

$

(1,498

)

 

$

(3,826

)

 

$

 

 

$

23,218

 

Gross profit

126,966

 

 

1,498

 

 

3,826

 

 

 

 

132,290

 

Gross margin

82

%

 

 

 

 

 

 

 

85

%

Research and development

23,505

 

 

(2,418

)

 

 

 

 

 

21,087

 

Sales and marketing

49,163

 

 

(5,405

)

 

 

 

 

 

43,758

 

General and administrative

21,527

 

 

(3,351

)

 

 

 

(1,559

)

 

16,617

 

Amortization of other intangibles

8,686

 

 

 

 

(8,686

)

 

 

 

 

Restructuring and other

(21

)

 

 

 

 

 

21

 

 

 

Operating income

24,106

 

 

12,672

 

 

12,512

 

 

1,538

 

 

50,828

 

Operating margin

16

%

 

 

 

 

 

 

 

33

%

 
 

 

Three Months Ended June 30, 2019

 

GAAP

 

Share-based
compensation

 

Amortization
of other
intangibles

 

Restructuring
& other

 

Non-GAAP

Non-GAAP operating income:

 

 

 

 

 

 

 

 

 

Cost of revenue

$

29,543

 

 

$

(3,309

)

 

$

(4,557

)

 

$

 

 

$

21,677

 

Gross profit

93,007

 

 

3,309

 

 

4,557

 

 

 

 

100,873

 

Gross margin

76

%

 

 

 

 

 

 

 

82

%

Research and development

25,659

 

 

(7,127

)

 

 

 

 

 

18,532

 

Sales and marketing

58,215

 

 

(15,104

)

 

 

 

 

 

43,111

 

General and administrative

31,882

 

 

(15,885

)

 

 

 

(3,864

)

 

12,133

 

Amortization of other intangibles

10,142

 

 

 

 

(10,142

)

 

 

 

 

Restructuring and other

115

 

 

 

 

 

 

(115

)

 

 

Operating (loss) income

(33,006

)

 

41,425

 

 

14,699

 

 

3,979

 

 

27,097

 

Operating margin

(27

)%

 

 

 

 

 

 

 

22

%

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited - In thousands, except per share amounts)

 

 

Three Months Ended
June 30,

 

2020

 

2019

Non-GAAP net income:

 

 

 

Net income (loss)

$

12,865

 

 

$

(49,155

)

Income tax expense (benefit)

7,147

 

 

(2,943

)

Cash paid for tax

(10,127

)

 

(2,052

)

Interest expense, net

4,113

 

 

19,186

 

Cash paid for interest

(3,763

)

 

(15,738

)

Share-based compensation

12,672

 

 

41,425

 

Amortization of other intangibles

8,686

 

 

10,142

 

Amortization of acquired technology

3,826

 

 

4,557

 

Transaction and sponsor related costs

1,559

 

 

3,864

 

Restructuring and other

(21

)

 

115

 

Gain on currency translation

(19

)

 

(94

)

Non-GAAP net income

$

36,938

 

 

$

9,307

 

 

 

 

 

Share count:

 

 

 

Weighted-average shares outstanding - basic

279,069

 

 

237,693

 

Weighted-average shares outstanding - diluted

284,309

 

 

237,693

 

 

 

 

 

Shares used in non-GAAP per share calculations:

 

 

 

Weighted-average shares outstanding - basic

279,069

 

 

237,693

 

Weighted-average shares outstanding - diluted

284,309

 

 

238,619

 

 

 

 

 

Net income (loss) per share:

 

 

 

Net income (loss) per share - basic

$

0.05

 

 

$

(0.21

)

Net income (loss) per share - diluted

$

0.05

 

 

$

(0.21

)

Non-GAAP net income per share - basic

$

0.13

 

 

$

0.04

 

Non-GAAP net income per share - diluted

$

0.13

 

 

$

0.04

 

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited - In thousands)

 

 

Three Months Ended June 30,

 

Trailing Twelve
Months Ended
June 30, 2020

 

2020

 

2019

 

Adjusted EBITDA:

 

 

 

 

 

Net income (loss)

$

12,865

 

 

$

(49,155

)

 

$

(356,004

)

Income tax expense (benefit)

 

7,147

 

 

 

(2,943

)

 

 

209,581

 

Interest expense, net

 

4,113

 

 

 

19,186

 

 

 

30,324

 

Amortization

 

13,019

 

 

 

15,081

 

 

 

56,395

 

Depreciation

 

1,590

 

 

 

2,034

 

 

 

7,420

 

Restructuring and other

 

(21

)

 

 

115

 

 

 

956

 

Transaction and sponsor related costs

 

1,559

 

 

 

3,864

 

 

 

19,314

 

(Gain) loss on currency translation

 

(19

)

 

 

(94

)

 

 

1,272

 

Share-based compensation

 

12,672

 

 

 

41,425

 

 

 

193,725

 

Adjusted EBITDA

$

52,925

 

 

$

29,513

 

 

$

162,983

 

 

 

Three Months Ended
June 30,

 

2020

 

2019

Unlevered Free Cash Flow ("uFCF") (After tax adjustment):

 

 

 

Net cash provided by operating activities

$

37,008

 

 

$

34,167

 

Cash paid for interest expense

 

3,763

 

 

 

15,738

 

Restructuring and other

 

(21

)

 

 

115

 

Purchase of property, plant, and equipment

 

(4,418

)

 

 

(4,151

)

Transaction and sponsor related costs

 

1,559

 

 

 

3,864

 

Total uFCF

 

37,891

 

 

 

49,733

 

Interest tax adjustment

 

(941

)

 

 

(3,935

)

uFCF (After tax adjustment)

$

36,950

 

 

$

45,798

 

 

 

June 30, 2020

Adjusted EBITDA/Net Debt Leverage Ratio:

 

Long-term debt

$

510,452

 

Cash

 

250,377

 

Net debt

 

260,075

 

 

 

TTM Adjusted EBITDA

$

162,983

 

Leverage Ratio

 

1.6

x

 

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

Media Relations:
Jerome Stewart
VP, Communications
Jerome.Stewart@dynatrace.com

Jack Murphy
Jack.Murphy@icrinc.com

Source: Dynatrace Investor Relations