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Dynatrace Reports First Quarter of Fiscal Year 2020 Financial Results

09/04/2019
  • Total Revenue of $122.6 million, a year-over-year increase of 25%
  • Annualized recurring revenue "ARR" of $437.6 million, a year-over-year increase of 43%
  • Subscription and Services revenue of $118.8 million, a year-over-year increase of 36%
  • GAAP EPS of $(0.21) and non-GAAP EPS of $0.04

WALTHAM, Mass.--(BUSINESS WIRE)-- Dynatrace (NYSE:DT), a market-leading software intelligence platform, purpose-built for the enterprise cloud, today released financial results for the first quarter of its fiscal 2020 ended June 30, 2019.

“Dynatrace delivered strong first quarter results, highlighted by 36% year-over-year growth in subscription and services revenue” said John Van Siclen, Chief Executive Officer. “As every company becomes a software company and the adoption of dynamic multi-clouds continues to gain momentum, there is increasing demand from enterprises to use our Dynatrace® platform to build better software faster, optimize clouds more efficiently, and compete more effectively in the digital age. Dynatrace has been an industry leader for over a decade, and the reinvention of our platform and company five years ago to prepare for and benefit from the adoption of the enterprise cloud is delivering tremendous results.”

John Van Siclen added, “Dynatrace has a unique combination of meaningful scale, growth and cash flow. The recent completion of our initial public offering further strengthens our balance sheet and provides additional capital to execute our long-term growth initiatives and capture an increasing share of our $18 billion and growing market.”

First Quarter Fiscal 2020 and Other Recent Business Highlights:

Financial Highlights:

  • Total Revenue of $122.6 million, an increase of 25% compared to $98.2 million in Q1 2019
  • Total ARR of $437.6 million, an increase of 43% compared to $306.1 million at the end of Q1 2019
  • Subscription and Services revenue of $118.8 million, an increase of 36% compared to $87.1 million in Q1 2019, and representing 97% of total revenue
  • GAAP Operating loss of $(33.0) million and Non-GAAP Operating Income of $27.1 million
  • GAAP EPS of $(0.21) and non-GAAP EPS of $0.04

Dynatrace ® Platform Highlights:

  • Ended the quarter with 1,578 Dynatrace customers, a sequential increase of 214 from the end of Q4 2019
  • Dynatrace Dollar-Based Net Expansion rate greater than 120% for the fifth consecutive quarter
  • Dynatrace ARR represents 75% of total ARR, increasing from 70% of total ARR at the end of Q4 2019

Initial Public Offering:

  • Completed our initial public offering and listed our shares on the New York Stock Exchange on August 1, 2019. Dynatrace sold 40,951,053 shares of its common stock at a price of $16.00 per share, for a total of approximately $622.0 million in gross primary proceeds and $590.3 million of net proceeds.
  • Following the completion of our initial public offering on August 1, 2019, pro forma net debt as of June 30, 2019 was reduced to $355.0 million from $945.3 million. Our pro forma TTM Adjusted EBITDA/Net Debt Leverage Ratio as of June 30, 2019 was 3.3x.

Business Highlights:

  • Named a leader in Gartner's MQ for APM in March 2019, and in The Forrester Wave: Intelligent Application and Service Monitoring report for Q2 2019.
  • Expanded automatic support for dynamic Kubernetes environments through our AI engine, Davis™, including immediate support for Red Hat OpenShift 4.
  • Extended hybrid support for CICS and IMS mainframe environments as well as a range of associated integration and middleware technologies bringing end-to-end observability from mobile to mainframe.

First Quarter 2020 Financial Highlights

(Unaudited – dollars in thousands, except per share amounts)

 

Three Months Ended June 30,

 

2019

 

2018

Annualized recurring revenue

$

437,622

 

 

$

306,103

 

Year-over-Year Increase

43

%

 

 

 

 

 

 

Revenues:

 

 

 

Total revenue

$

122,550

 

 

$

98,221

 

Year-over-Year Increase

25

%

 

 

 

 

 

 

Subscription and services revenue

$

118,766

 

 

$

87,142

 

Year-over-Year Increase

36

%

 

 

 

 

 

 

Non-GAAP operating income(*)

$

27,097

 

 

$

12,439

 

Non-GAAP operating margin (*)

22

%

 

13

%

 

 

 

 

Non-GAAP net income (*)

$

9,307

 

 

$

14,343

 

 

 

 

 

Non-GAAP net income per share

$

0.04

 

 

$

0.06

 

 

 

 

 

Shares outstanding used in computing Non-GAAP per share amounts - diluted

238,618,865

 

 

234,707,802

 

 

 

 

 

Unlevered Free Cash Flow(*)

$

45,798

 

 

$

58,744

 

* 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 ir.dynatrace.com.

Financial Outlook

Based on information available, as of September 4, 2019, Dynatrace is issuing guidance for the second quarter and full year fiscal 2020 as follows:

Second Quarter of Fiscal Year 2020:

  • Total revenue is expected to be in the range of $123 million to $124 million
  • Non-GAAP operating income is expected to be in the range of $24 million to $25 million
  • Non-GAAP net income is expected to be in the range of $11 million to $12 million
  • Non-GAAP net income per diluted share is expected to be $0.04, based on approximately 270 million diluted weighted-average shares

Full Year Fiscal 2020:

  • Total revenue is expected to be in the range of $521 million to $524 million
  • Total ARR is expected to be in the range of $545 million to $550 million
  • Non-GAAP operating income is expected to be in the range of $112 million to $115 million
  • Non-GAAP net income is expected to be in the range of $56 million to $60 million
  • Non-GAAP net income per diluted share is expected to be in the range of $0.20 to $0.22, based on approximately 278 million diluted weighted-average shares

Reconciliation of non-GAAP operating income, non-GAAP net income and non-GAAP net income per share 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 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, September 4, 2019, to discuss its results at 5:00 p.m. Eastern Time. The call will be accessible by telephone at 866-211-4694 (domestic) or 647-689-6731 (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 2779159) until September 18, 2019. 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.

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 Dollar-Based 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, as well as any upsell generated at the time of conversion.

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.

TTM 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 from (used in) operating activities and adjusted to exclude cash paid for interest (net of tax), non-recurring restructuring and acquisition related costs, along 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 enterprise cloud complexity and accelerate digital transformation. With AI and complete automation, our all-in-one platform provides answers, not just data, about the performance of applications, the underlying infrastructure and the experience of all users. That’s why many of the world’s largest enterprises trust Dynatrace to modernize and automate enterprise cloud operations, release better software faster, and deliver unrivalled digital experiences.

Curious to see how you can simplify your enterprise 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 2020; 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, 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 successfully convert and upsell our customers as they convert from our Classic products to the Dynatrace® platform, 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 final prospectus filed on July 31, 2019 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 – dollars in thousands, except per share amounts)

 

Three Months Ended June 30,

 

2019

 

2018

Revenues:

 

 

 

Subscriptions

$

108,128

 

 

$

77,924

 

License

3,784

 

 

11,079

 

Services

10,638

 

 

9,218

 

Total revenue

122,550

 

 

98,221

 

 

 

 

 

Cost of revenues:

 

 

 

Cost of subscriptions

16,177

 

 

13,132

 

Cost of services

8,809

 

 

6,895

 

Amortization of acquired technology

4,557

 

 

4,664

 

Total cost of revenues

29,543

 

 

24,691

 

Gross profit

93,007

 

 

73,530

 

 

 

 

 

Operating expenses:

 

 

 

Research and development

25,659

 

 

17,896

 

Sales and marketing

58,215

 

 

42,509

 

General and administrative

31,882

 

 

19,881

 

Amortization of other intangibles

10,142

 

 

12,049

 

Restructuring and other

115

 

 

410

 

Total operating expenses

126,013

 

 

92,745

 

Loss from operations

(33,006

)

 

(19,215

)

Interest expense, net

(19,186

)

 

(10,687

)

Other, net

94

 

 

2,863

 

Loss before income taxes

(52,098

)

 

(27,039

)

Income tax benefit

2,943

 

 

3,483

 

Net loss

$

(49,155

)

 

$

(23,556

)

Net loss per share:

 

 

 

Basic and diluted

$

(0.21

)

 

$

(0.10

)

Weighted average shares outstanding:

 

 

 

Basic and diluted

237,693,127

 

 

233,970,804

 

UNAUDITED STOCK-BASED COMPENSATION

 

Three Months Ended June 30,

 

2019

 

2018

Cost of revenues

$

3,309

 

 

$

1,084

 

Research and development

7,127

 

 

2,418

 

Sales and marketing

15,104

 

 

4,463

 

General and administrative

15,885

 

 

5,233

 

Total share-based compensation expense

$

41,425

 

 

$

13,198

 

DYNATRACE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

June 30, 2019

 

March 31, 2019

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

57,453

 

 

$

51,314

 

Accounts receivable, net of allowance for doubtful accounts of $3.3 million and
$3.4 million as of June 30, 2019 and March 31, 2019, respectively

82,380

 

 

115,431

 

Deferred commissions, current

29,367

 

 

27,705

 

Prepaid expenses and other current assets

21,055

 

 

18,768

 

Total current assets

190,255

 

 

213,218

 

Property and equipment, net

20,282

 

 

17,925

 

Goodwill

1,270,485

 

 

1,270,120

 

Other intangible assets, net

244,398

 

 

259,123

 

Deferred tax assets, net

10,781

 

 

10,678

 

Deferred commissions, non-current

30,617

 

 

31,545

 

Other assets

8,765

 

 

8,757

 

Total assets

$

1,775,583

 

 

$

1,811,366

 

 

 

 

 

Liabilities and member's deficit

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

4,702

 

 

$

6,559

 

Accrued expenses, current

51,748

 

 

64,920

 

Current portion of long-term debt

 

 

9,500

 

Deferred revenue, current

281,977

 

 

272,772

 

Payable to related party

600,203

 

 

597,150

 

Total current liabilities

938,630

 

 

950,901

 

Deferred revenue, non-current

93,596

 

 

92,973

 

Accrued expenses, non-current

139,473

 

 

98,359

 

Deferred tax liabilities, net

38,721

 

 

47,598

 

Long-term debt, net of current portion

1,002,792

 

 

1,011,793

 

Total liabilities

2,213,212

 

 

2,201,624

 

Commitments and contingencies

 

 

 

Member's deficit:

 

 

 

Common units, no par value, 100 units authorized, issued and outstanding

 

 

 

Additional paid-in capital

(184,599

)

 

(184,546

)

Accumulated deficit

(225,157

)

 

(176,002

)

Accumulated other comprehensive (loss)

(27,873

)

 

(29,710

)

Total member's deficit

(437,629

)

 

(390,258

)

Total liabilities and member's deficit

$

1,775,583

 

 

$

1,811,366

 

DYNATRACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited – in thousands)

 

Three Months Ended June 30,

 

2019

 

2018

Cash flows from operating activities:

 

 

 

Net loss

$

(49,155

)

 

$

(23,556

)

Adjustments to reconcile net loss to cash provided by operations:

 

 

 

Depreciation

2,034

 

 

1,943

 

Amortization

15,081

 

 

18,343

 

Share-based compensation

41,425

 

 

13,198

 

Deferred income taxes

(8,877

)

 

(4,353

)

Other

510

 

 

 

Net change in operating assets and liabilities:

 

 

 

Accounts receivable

34,116

 

 

47,935

 

Deferred commissions

(720

)

 

(187

)

Prepaid expenses and other assets

(1,117

)

 

(3,278

)

Accounts payable and accrued expenses

(8,365

)

 

(1,496

)

Deferred revenue

9,235

 

 

10,011

 

Net cash provided by operating activities

34,167

 

 

58,560

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchase of property and equipment

(4,151

)

 

(1,559

)

Capitalized software additions

(333

)

 

(574

)

Net cash used in investing activities

(4,484

)

 

(2,133

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Repayment of term loans

(19,000

)

 

 

Payments to related parties

 

 

(80,386

)

Equity repurchases

(53

)

 

(111

)

Installments related to acquisition

(4,694

)

 

 

Net cash used in financing activities

(23,747

)

 

(80,497

)

 

 

 

 

Effect of exchange rates on cash and cash equivalents

203

 

 

(1,899

)

 

 

 

 

Net increase (decrease) in cash and cash equivalents

6,139

 

 

(25,969

)

 

 

 

 

Cash and cash equivalents, beginning of period

51,314

 

 

77,581

 

Cash and cash equivalents, end of period

$

57,453

 

 

$

51,612

 

 

 

 

 

Supplemental cash flow data:

 

 

 

Cash paid for interest

$

15,738

 

 

$

 

Cash paid for (received from) tax

$

2,052

 

 

$

(1,904

)

Non-cash financing activities:

 

 

 

Transactions with related parties

$

 

 

$

(2,927

)

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited - Dollars in thousands)

 

 

Three Months Ended June 30, 2019

 

GAAP

 

Share-based
compensation

 

Amortization
of other
intangibles

 

Restructuring
& other

 

Non-GAAP

Non-GAAP operating income:

 

 

 

 

 

 

 

 

 

Cost of revenues

$

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 income (loss)

(33,006

)

 

41,425

 

 

14,699

 

 

3,979

 

 

27,097

 

Operating margin

(27

)%

 

 

 

 

 

 

 

22

%

 

Three Months Ended June 30, 2018

 

GAAP

 

Share-based
compensation

 

Amortization
of other
intangibles

 

Restructuring
& other

 

Non-GAAP

Non-GAAP operating income:

 

 

 

 

 

 

 

 

 

Cost of revenues

$

24,691

 

 

$

(1,084

)

 

$

(4,664

)

 

$

 

 

$

18,943

 

Gross profit

73,530

 

 

1,084

 

 

4,664

 

 

 

 

79,278

 

Gross margin

75

%

 

 

 

 

 

 

 

81

%

Research and development

17,896

 

 

(2,418

)

 

 

 

 

 

15,478

 

Sales and marketing

42,509

 

 

(4,463

)

 

 

 

 

 

38,046

 

General and administrative

19,881

 

 

(5,233

)

 

 

 

(1,333

)

 

13,315

 

Amortization of other intangibles

12,049

 

 

 

 

(12,049

)

 

 

 

 

Restructuring and other

410

 

 

 

 

 

 

(410

)

 

 

Operating income (loss)

(19,215

)

 

13,198

 

 

16,713

 

 

1,743

 

 

12,439

 

Operating margin

(20

)%

 

 

 

 

 

 

 

13

%

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited - Dollars in thousands, except per share amounts)

 

Three Months Ended June 30,

 

2019

 

2018

Non-GAAP net income:

 

 

 

Net loss

$

(49,155

)

 

$

(23,556

)

Tax benefit

(2,943

)

 

(3,483

)

Cash (paid for) received from tax

(2,052

)

 

1,904

 

Interest expense

19,186

 

 

10,687

 

Cash paid for interest

(15,738

)

 

 

Share-based compensation

41,425

 

 

13,198

 

Amortization of other intangibles

10,142

 

 

12,049

 

Amortization of acquired technology

4,557

 

 

4,664

 

Transaction and sponsor related costs

3,864

 

 

1,333

 

Restructuring and other

115

 

 

410

 

(Gain) on currency translation

$

(94

)

 

$

(2,863

)

Non-GAAP net income

$

9,307

 

 

$

14,343

 

 

 

 

 

Share count:

 

 

 

Weighted-average shares outstanding - basic

237,693,127

 

 

233,970,804

 

Weighted-average shares outstanding - diluted

237,693,127

 

 

233,970,804

 

 

 

 

 

Shares used in non-GAAP per share calculations:

 

 

 

Weighted-average shares outstanding - basic

237,693,127

 

 

233,970,804

 

Weighted-average shares outstanding - diluted

238,618,865

 

 

234,707,802

 

 

 

 

 

Net income (loss) per share:

 

 

 

Net loss per share - basic

$

(0.21

)

 

$

(0.10

)

Net loss per share - diluted

$

(0.21

)

 

$

(0.10

)

Non-GAAP net income per share - basic

$

0.04

 

 

$

0.06

 

Non-GAAP net income per share - diluted

$

0.04

 

 

$

0.06

 

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited - Dollars in thousands)

 

Three Months Ended June 30,

 

2019

 

2018

Adjusted EBITDA:

 

 

 

Net loss

$

(49,155

)

 

$

(23,556

)

Income tax benefit

(2,943

)

 

(3,483

)

Interest expense, net

19,186

 

 

10,687

 

Amortization

15,081

 

 

18,343

 

Depreciation

2,034

 

 

1,943

 

Restructuring and other

115

 

 

410

 

Transaction and sponsor related costs

3,864

 

 

1,333

 

(Gain) on currency translation

(94

)

 

(2,863

)

Share-based compensation

41,425

 

 

13,198

 

Adjusted EBITDA

$

29,513

 

 

$

16,012

 

 

Three Months Ended June 30,

 

2019

 

2018

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

 

 

 

Net cash provided by operating activities

$

34,167

 

 

$

58,560

 

Cash paid for interest expense

15,738

 

 

 

Restructuring and other

115

 

 

410

 

Property, plant, and equipment

(4,151

)

 

(1,559

)

Transaction and sponsor related costs

3,864

 

 

1,333

 

Total uFCF

49,733

 

 

58,744

 

Interest tax adjustment

(3,935

)

 

 

uFCF (After tax adjustment)

$

45,798

 

 

$

58,744

 

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited - Dollars in thousands)

 

Three Months Ended June 30,

 

Trailing

Twelve Months
Ended

June 30, 2019

 

2019

 

2018

 

Adjusted EBITDA:

 

 

 

 

 

Net loss

(49,155

)

 

(23,556

)

 

$

(141,793

)

Income tax benefit

(2,943

)

 

(3,483

)

 

(23,177

)

Interest expense, net

19,186

 

 

10,687

 

 

78,344

 

Amortization

15,081

 

 

18,343

 

 

69,530

 

Depreciation

2,034

 

 

1,943

 

 

7,410

 

Restructuring and other

115

 

 

410

 

 

1,468

 

Transaction and sponsor related costs

3,864

 

 

1,333

 

 

15,074

 

(Gain) loss on currency translation

(94

)

 

(2,863

)

 

128

 

Share-based compensation

41,425

 

 

13,198

 

 

99,378

 

Adjusted EBITDA

29,513

 

 

16,012

 

 

$

106,362

 

 

Pro Forma

June 30, 2019

Adjusted EBITDA/Net Debt Leverage Ratio:

 

Long-term debt

$

1,002,792

 

Cash

57,453

 

Net debt

945,339

 

Net IPO proceeds

590,297

 

Pro forma net debt

355,042

 

 

 

TTM Adjusted EBITDA

$

106,362

 

Leverage Ratio

3.3

x

 

Marc P. Griffin
646-277-1290
Marc.Griffin@ICRinc.com

Michael Bowen
203-682-8299
Michael.Bowen@ICRinc.com

Media Relations
Jack Murphy
646-677-1834
Jack.Murphy@ICRinc.com

Mike Maciag
Dynatrace
Mike.Maciag@dynatrace.com
650-279-3655

Source: Dynatrace Investor Relations

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