Exhibit 99.1
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Dynatrace Reports Fourth Quarter and Full Year Fiscal 2023 Financial Results
Adjusted ARR growth of 29% year-over-year

WALTHAM, Mass., May 17, 2023 - Dynatrace (NYSE: DT), the leader in unified observability and security, today announced financial results for the fourth quarter and full year ended March 31, 2023.

“Dynatrace delivered a great finish to the year with strong fourth quarter results that exceeded expectations across the board, demonstrating the durability of our business model,” said Rick McConnell, Chief Executive Officer. “Observability is quickly moving from optional to mandatory as customers look to tame the explosion of data and increased complexity that's driven by their cloud migration and digital transformation initiatives. As we begin fiscal 2024, we remain focused on driving innovation to meet customers' evolving needs, managing the business prudently, and investing thoughtfully in strategic priorities to capture the substantial opportunities we see ahead.”

All growth rates are compared to the fourth quarter and full year of fiscal 2022 unless otherwise noted.

Fourth Quarter Fiscal 2023 Financial Highlights:
•Total ARR of $1,247 million, Adjusted ARR growth of 29% year-over-year
•Total Revenue of $314 million, up 27% on a constant currency basis
•Subscription Revenue of $293 million, up 28% on a constant currency basis
•GAAP Operating Income of $19 million and Non-GAAP Operating Income of $78 million
•GAAP EPS of $0.27 and non-GAAP EPS of $0.31, on a dilutive basis

Full Year Fiscal 2023 Financial Highlights:
•Total Revenue of $1,159 million, up 29% on a constant currency basis
•Subscription Revenue of $1,083 million, up 29% on a constant currency basis
•GAAP Operating Income of $93 million and Non-GAAP Operating Income of $292 million
•GAAP EPS of $0.37 and non-GAAP EPS of $0.97, on a dilutive basis
•GAAP Operating Cash Flow of $355 million and Free Cash Flow of $333 million

Business Highlights:
•Platform Expansion: Innovations from the last quarter include an expanded GrailTM data lakehouse and a new user experience for Dynatrace products, both designed to enable exploratory analytics and deliver precise answers and intelligent automation from petabytes of unified observability and security data. In addition, the new Dynatrace AutomationEngine and AppEngine allow customers to automate nearly unlimited BizDevSecOps workflows and easily build custom, compliant, and data-driven apps and integrations.

•Analyst Recognition: The 2023 GigaOm Radar for Cloud Observability Solutions recently named Dynatrace a "Leader" and positioned the company as the closest of all vendors to the center of the radar. Enterprise Management Associates (EMA) recognized Dynatrace as one of the top ten leading security visionaries exhibiting at the 2023 RSA Conference.

•Expanded Partnerships: In fiscal 2023, business transacted through hyperscaler partners, including AWS, Google Cloud, and Microsoft Azure, led to several seven-figure deals in the fourth quarter. New business transacted through our largest hyperscaler partner grew by more than 80% compared to last year. In addition, we commenced the rollout of Dynatrace to DXC PlatformX customers, with many expected to migrate within the next 12 months. In Q4, we also saw continued expansion of our customer relationship with a major global system integrator (GSI). In addition to using the Dynatrace platform to power its observability practice, this GSI also uses Dynatrace for its internal observability and digital transformation initiatives.
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Fourth Quarter 2023 Financial Highlights
(Unaudited – In thousands, except per share data)
Three Months Ended March 31,
20232022
Key Operating Metric:
Annualized recurring revenue (ARR)$1,246,681 $995,121 
Year-over-Year Increase25 %
Year-over-Year Increase - constant currency28 %
Adjusted ARR Growth29 %
Revenue:
Total revenue$314,475 $252,585 
Year-over-Year Increase25 %
Year-over-Year Increase - constant currency (*)
27 %
Subscription revenue$293,314 $234,976 
Year-over-Year Increase25 %
Year-over-Year Increase - constant currency (*)
28 %
GAAP Financial Measures:
GAAP operating income$19,431 $17,629 
GAAP operating margin6 %7 %
GAAP net income$80,293 $929 
GAAP net income per share - diluted$0.27 $0.00 
GAAP shares outstanding - diluted293,917 290,339 
Net cash provided by operating activities$120,427 $88,305 
Non-GAAP Financial Measures:
Non-GAAP operating income (*)
$77,935 $57,656 
Non-GAAP operating margin (*)
25 %23 %
Non-GAAP net income (*)
$92,459 $48,287 
Non-GAAP net income per share - diluted (*)
$0.31 $0.17 
Non-GAAP shares outstanding - diluted (*)
293,917 290,339 
Free Cash Flow (*)
$114,512 $82,378 
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Full Year 2023 Financial Highlights
(Unaudited – In thousands, except per share data)
Year Ended March 31,
20232022
Revenue:
Total revenue$1,158,530 $929,445 
Year-over-Year Increase25 %
Year-over-Year Increase - constant currency (*)
29 %
Subscription revenue$1,083,330 $870,439 
Year-over-Year Increase24 %
Year-over-Year Increase - constant currency (*)
29 %
GAAP Financial Measures:
GAAP operating income$92,811 $81,307 
GAAP operating margin8 %9 %
GAAP net income$107,959 $52,451 
GAAP net income per share - diluted$0.37 $0.18 
GAAP shares outstanding - diluted291,617 290,903 
Net cash provided by operating activities$354,885 $250,917 
Non-GAAP Financial Measures:
Non-GAAP operating income (*)
$291,791 $233,766 
Non-GAAP operating margin (*)
25 %25 %
Non-GAAP net income (*)
$282,224 $197,502 
Non-GAAP net income per share - diluted (*)
$0.97 $0.68 
Non-GAAP shares outstanding - diluted (*)
291,617 290,903 
Free Cash Flow (*)
333,345 233,222 
* 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 Investor Relations section of our website at https://ir.dynatrace.com.

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Financial Outlook
Based on information available as of May 17, 2023, Dynatrace is issuing guidance for the first quarter and full year fiscal 2024 in the table below. This guidance is based on foreign exchange rates as of April 28, 2023. The total foreign exchange tailwind for fiscal 2024 is expected to be approximately $10 million on ARR and $13 million on revenue. Growth rates for ARR, Total revenue, and Subscription revenue are presented in constant currency to provide better visibility into the underlying growth of the business.

All growth rates are compared to the first quarter and full year of fiscal 2023 unless otherwise noted.

(In millions, except per share data)First Quarter
 Fiscal 2024		Full Year
Fiscal 2024
ARR-
$1,475 - $1,490
As reported-
18% - 20%
Constant currency-
18% - 19%
Total revenue
$325 - $328
$1,388 - $1,406
As reported
22% - 23%
20% - 21%
Constant currency
22% - 23%
19% - 20%
Subscription revenue
$306 - $309
$1,311 - $1,327
As reported
23% - 24%
21% - 22%
Constant currency
23% - 24%
20% - 21%
Non-GAAP operating income
$76.5 - $78.5
$348 - $358
Non-GAAP operating margin
23.5% - 24%
25% - 25.5%
Non-GAAP net income
$64 - $66
$295 - $307
Non-GAAP net income per diluted share
$0.22
$0.98 - $1.02
Diluted weighted average shares outstanding
296 - 297
300 - 301
Free cash flow-
$303 - $312
Free cash flow margin-
22%


Reconciliation of non-GAAP operating income, non-GAAP net income, non-GAAP net income per share and 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 share-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.


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Conference Call and Webcast Information
Dynatrace will host a conference call and live webcast to discuss its results and business outlook at 8:00 a.m. Eastern Time today, May 17, 2023. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with event confirmation #: 13737836. The call will also be available live via webcast on the company’s website, ir.dynatrace.com.

An audio replay of the call will also be available until 11:59 p.m. Eastern Time on May 31, 2023, by dialing (877) 660-6853 from the U.S. or Canada, or for international callers by dialing (201) 612-7415 and entering event confirmation #: 13737836. In addition, an archived webcast will be available at 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.
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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. Dynatrace provides this non-GAAP financial information to aid investors in better understanding our performance.
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.
Adjusted ARR is defined as ARR excluding the impact of foreign exchange rate fluctuations that occurred over the trailing twelve month period. This calculation also excludes the headwind associated with the Dynatrace® perpetual license ARR that rolled off in the trailing twelve month period.
Adjusted ARR Growth is defined as year-over-year growth in Adjusted ARR divided by ARR as reported.
Constant Currency amounts for ARR, Total Revenue and Subscription Revenue are presented to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign exchange 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.

Dollar-Based Gross Retention Rate is defined as the ARR from all customers as of one year prior, less contraction and customer churn, divided by the total ARR from one year prior. This metric reflects the percentage of ARR from all customers as of the year prior that has been retained.

Dollar-Based Net Retention 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. Our dollar-based net retention rate reflects customer renewals, expansion, contraction and churn, and excludes the benefit of Dynatrace® ARR resulting from the conversion of Classic products to the Dynatrace® platform. Effective the first quarter of fiscal year 2023, we began to exclude the headwind associated with the Dynatrace perpetual license ARR given diminishing impact of perpetual license ARR. We believe that eliminating the perpetual license headwind results in a dollar-based net retention rate metric that better reflects Dynatrace’s ability to expand existing customer relationships. Dollar-based net retention rate is presented on a constant currency basis.

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.
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Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures (reflected as "purchase of property and equipment" in our financial statements).

About Dynatrace
Dynatrace exists to make the world’s software work perfectly. Our unified platform combines broad and deep observability and continuous runtime application security with the most advanced AIOps to provide answers and intelligent automation from data at an enormous scale. This enables innovators to modernize and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences. That is why the world’s largest organizations trust Dynatrace® to accelerate digital transformation.


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 Mr. McConnell's remarks and statements regarding management’s expectations of future financial and operational performance and operational expenditures, expected growth, and business outlook, including our financial outlook for the first quarter and full year of fiscal 2024. 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 revenue growth rates in future periods; market adoption of our product offerings; continued demand for, and spending on, our solutions; our ability to innovate and develop solutions that meet customer needs; the ability of our platform and solutions to effective interoperate with customers’ IT infrastructures; our ability to acquire new customers and retain and expand our relationships with existing customers; our ability to expand our sales and marketing capabilities; our ability to compete; our ability to maintain successful relationships with partners; security breaches, other security incidents and any real or perceived errors, failures, defects or vulnerabilities in our solutions; our ability to protect our intellectual property; the effect on our business of the macroeconomic environment, associated global economic conditions and geopolitical disruption; and other risks set forth under the caption “Risk Factors” in our most recent Form 10-Q filed on February 1, 2023 and our other SEC filings, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2023, which we plan to file later this month. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.


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DYNATRACE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended March 31,Twelve Months Ended March 31,
2023202220232022
(unaudited)
Revenue:
Subscription$293,314 $234,976 $1,083,330 $870,439 
Service21,161 17,609 75,200 59,006 
Total revenue314,475 252,585 1,158,530 929,445 
Cost of revenue:
Cost of subscription39,052 31,245 144,445 111,646 
Cost of service16,618 12,796 62,882 45,717 
Amortization of acquired technology3,895 3,875 15,564 15,513 
Total cost of revenue59,565 47,916 222,891 172,876 
Gross profit254,910 204,669 935,639 756,569 
Operating expenses:
Research and development (1)
61,502 42,833 218,349 156,342 
Sales and marketing (1)
124,702 101,300 448,015 362,116 
General and administrative (1)
42,546 35,368 150,031 126,622 
Amortization of other intangibles6,573 7,539 26,292 30,157 
Restructuring and other156 — 141 25 
Total operating expenses235,479 187,040 842,828 675,262 
Income from operations19,431 17,629 92,811 81,307 
Interest income (expense), net4,066 (2,234)(3,409)(10,192)
Other income, net2,412 1,889 565 544 
Income before income taxes25,909 17,284 89,967 71,659 
Income tax benefit (expense)54,384 (16,355)17,992 (19,208)
Net income$80,293 $929 $107,959 $52,451 
Net income per share:
Basic
$0.28 $0.00 $0.38 $0.18 
Diluted
$0.27 $0.00 $0.37 $0.18 
Weighted average shares outstanding:
Basic
289,751 285,349 287,700 284,161 
Diluted
293,917 290,339 291,617 290,903 
(1) During the three months ended March 31, 2023, we began allocating depreciation expense to operating expenses based upon location and headcount, whereas previously it was included primarily in general and administrative expense. This has been retrospectively applied to the twelve months ended March 31, 2023.
SHARE-BASED COMPENSATION
Three Months Ended March 31,Twelve Months Ended March 31,
2023202220232022
(unaudited)
Cost of revenue$4,973 $3,321 $18,383 $12,863 
Research and development12,067 5,985 41,406 21,316 
Sales and marketing13,748 9,470 51,147 35,957 
General and administrative11,233 8,810 35,938 29,400 
Total share-based compensation expense$42,021 $27,586 $146,874 $99,536 
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DYNATRACE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
March 31,
20232022
Assets
Current assets:
Cash and cash equivalents$555,348 $462,967 
Accounts receivable, net442,518 350,666 
Deferred commissions, current83,029 62,601 
Prepaid expenses and other current assets37,289 72,188 
Total current assets1,118,184 948,422 
Property and equipment, net53,576 45,271 
Operating lease right-of-use asset, net68,074 58,849 
Goodwill1,281,812 1,281,876 
Other intangible assets, net63,599 105,736 
Deferred tax assets, net79,822 28,106 
Deferred commissions, non-current86,232 63,435 
Other assets14,048 9,615 
Total assets$2,765,347 $2,541,310 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable$21,953 $22,715 
Accrued expenses, current188,380 141,556 
Deferred revenue, current811,058 688,554 
Operating lease liabilities, current15,652 12,774 
Total current liabilities1,037,043 865,599 
Deferred revenue, non-current34,423 25,783 
Accrued expenses, non-current29,212 19,409 
Operating lease liabilities, non-current59,520 52,070 
Deferred tax liabilities280 85 
Long-term debt, net— 273,918 
Total liabilities1,160,478 1,236,864 
Shareholders' equity:
Common shares, $0.001 par value, 600,000,000 shares authorized, 290,411,108 and 286,053,276 shares issued and outstanding at March 31, 2023 and 2022, respectively
290 286 
Additional paid-in capital1,989,797 1,792,197 
Accumulated deficit(353,389)(461,348)
Accumulated other comprehensive loss(31,829)(26,689)
Total shareholders' equity1,604,869 1,304,446 
Total liabilities and shareholders' equity$2,765,347 $2,541,310 
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DYNATRACE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended March 31,
20232022
Cash flows from operating activities:
Net income$107,959 $52,451 
Adjustments to reconcile net income to cash provided by operations:
Depreciation12,541 10,638 
Amortization42,070 46,238 
Share-based compensation146,874 99,536 
Loss on extinguishment of debt5,925 — 
Deferred income taxes(53,534)(12,401)
Other988 1,486 
Net change in operating assets and liabilities:
Accounts receivable(94,910)(108,848)
Deferred commissions(45,191)(29,533)
Prepaid expenses and other assets26,753 (8,108)
Accounts payable and accrued expenses58,680 35,946 
Operating leases, net1,186 1,353 
Deferred revenue145,544 162,159 
Net cash provided by operating activities354,885 250,917 
Cash flows from investing activities:
Purchase of property and equipment(21,540)(17,695)
Acquisition of businesses, net of cash acquired— (13,195)
Net cash used in investing activities(21,540)(30,890)
Cash flows from financing activities:
Repayment of term loans(281,125)(120,000)
Debt issuance costs(1,949)— 
Proceeds from employee stock purchase plan17,806 13,913 
Proceeds from exercise of stock options32,939 25,489 
Equity repurchases(15)(66)
Net cash used in financing activities(232,344)(80,664)
Effect of exchange rates on cash and cash equivalents(8,620)(1,358)
Net increase in cash and cash equivalents92,381 138,005 
Cash and cash equivalents, beginning of year462,967 324,962 
Cash and cash equivalents, end of year$555,348 $462,967 
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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands)
Three Months Ended March 31, 2023
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of other intangiblesRestructuring & otherNon-GAAP
Non-GAAP operating income:
Cost of revenue$59,565 $(4,973)$(272)$(3,895)$— $50,425 
Gross profit254,910 4,973 272 3,895 — 264,050 
Gross margin81 %84 %
Research and development61,502 (12,067)(445)— — 48,990 
Sales and marketing124,702 (13,748)(1,143)— (1,332)108,479 
General and administrative42,546 (11,233)(841)— (1,826)28,646 
Amortization of other intangibles6,573 — — (6,573)— — 
Restructuring and other156 — — — (156)— 
Operating income$19,431 $42,021 $2,701 $10,468 $3,314 $77,935 
Operating margin6 %25 %

Three Months Ended March 31, 2022
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of other intangiblesRestructuring & otherNon-GAAP
Non-GAAP operating income:
Cost of revenue$47,916 $(3,321)$(143)$(3,875)$— $40,577 
Gross profit204,669 3,321 143 3,875 — 212,008 
Gross margin81 %84 %
Research and development42,833 (5,985)(259)— — 36,589 
Sales and marketing101,300 (9,470)(424)— — 91,406 
General and administrative35,368 (8,810)(123)— (78)26,357 
Amortization of other intangibles7,539 — — (7,539)— — 
Restructuring and other— — — — — — 
Operating income$17,629 $27,586 $949 $11,414 $78 $57,656 
Operating margin7 %23 %




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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Three Months Ended March 31,
20232022
Non-GAAP net income:
Net income$80,293 $929 
Income tax (benefit) expense(54,384)16,355 
Non-GAAP effective cash tax10,084 (7,543)
Interest (income) expense, net(4,066)2,234 
Cash received from (paid for) interest, net4,440 (1,826)
Share-based compensation42,021 27,586 
Employer payroll taxes on employee stock transactions2,701 949 
Amortization of other intangibles6,573 7,539 
Amortization of acquired technology3,895 3,875 
Transaction, restructuring, and other3,314 78 
Gain on currency translation(2,412)(1,889)
Non-GAAP net income$92,459 $48,287 
Share count:
Weighted-average shares outstanding - basic289,751285,349
Weighted-average shares outstanding - diluted293,917290,339
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic289,751 285,349
Weighted-average shares outstanding - diluted293,917 290,339
Net income per share:
Net income per share - basic$0.28 $0.00 
Net income per share - diluted$0.27 $0.00 
Non-GAAP net income per share - basic$0.32 $0.17 
Non-GAAP net income per share - diluted$0.31 $0.17 


Three Months Ended March 31,
20232022
Free Cash Flow ("FCF"):
Net cash provided by operating activities$120,427 $88,305 
Purchase of property and equipment(5,915)(5,927)
FCF$114,512 $82,378 
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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands)
Year Ended March 31, 2023
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of other intangiblesRestructuring & otherNon-GAAP
Non-GAAP operating income:
Cost of revenue$222,891 $(18,383)$(798)$(15,564)$(380)$187,766 
Gross profit935,639 18,383 798 15,564 380 970,764 
Gross margin81 %84 %
Research and development (1)
218,349 (41,406)(1,704)— — 175,239 
Sales and marketing (1)
448,015 (51,147)(2,338)— (1,332)393,198 
General and administrative (1)
150,031 (35,938)(1,351)— (2,206)110,536 
Amortization of other intangibles26,292 — — (26,292)— — 
Restructuring and other141 — — — (141)— 
Operating income$92,811 $146,874 $6,191 $41,856 $4,059 $291,791 
Operating margin8 %25 %
(1) During the three months ended March 31, 2023, we began allocating depreciation expense to operating expenses based upon location and headcount, whereas previously it was included primarily in general and administrative expense. This has been retrospectively applied to the year ended March 31, 2023.

Year Ended March 31, 2022
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of other intangiblesRestructuring & otherNon-GAAP
Non-GAAP operating income:
Cost of revenue$172,876 $(12,863)$(1,059)$(15,513)$— $143,441 
Gross profit756,569 12,863 1,059 15,513 — 786,004 
Gross margin81 %85 %
Research and development156,342 (21,316)(1,879)— — 133,147 
Sales and marketing362,116 (35,957)(2,305)— — 323,854 
General and administrative126,622 (29,400)(701)— (1,284)95,237 
Amortization of other intangibles30,157 — — (30,157)— — 
Restructuring and other25 — — — (25)— 
Operating income$81,307 $99,536 $5,944 $45,670 $1,309 $233,766 
Operating margin9 %25 %


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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Year Ended March 31,
20232022
Non-GAAP net income:
Net income$107,959 $52,451 
Income tax (benefit) expense(17,992)19,208 
Non-GAAP effective cash tax(13,370)(27,889)
Interest expense, net3,409 10,192 
Cash received from (paid for) interest, net3,803 (8,375)
Share-based compensation146,874 99,536 
Employer payroll taxes on employee stock transactions6,191 5,944 
Amortization of other intangibles26,292 30,157 
Amortization of acquired technology15,564 15,513 
Transaction, restructuring, and other4,059 1,309 
Gain on currency translation(565)(544)
Non-GAAP net income$282,224 $197,502 
Share count:
Weighted-average shares outstanding - basic287,700 284,161 
Weighted-average shares outstanding - diluted291,617 290,903 
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic287,700 284,161 
Weighted-average shares outstanding - diluted291,617 290,903 
Net income per share:
Net income per share - basic$0.38 $0.18 
Net income per share - diluted$0.37 $0.18 
Non-GAAP net income per share - basic$0.98 $0.70 
Non-GAAP net income per share - diluted$0.97 $0.68 


Year Ended March 31,
20232022
Free Cash Flow ("FCF"):
Net cash provided by operating activities$354,885 $250,917 
Purchase of property and equipment(21,540)(17,695)
FCF333,345 233,222 










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Contacts

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

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


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