EXHIBIT 99.1

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Dynatrace Reports Second Quarter of Fiscal Year 2024 Financial Results
Exceeds high end of guidance across all Q2 metrics; raises FY'24 guidance
Delivers ARR growth of 24% year-over-year on a constant currency basis
Achieves GAAP Operating Margin of 10% and Non-GAAP Operating Margin of 30%

WALTHAM, Mass, November 2, 2023 - Dynatrace (NYSE: DT), the leader in unified observability and security, today announced financial results for the second quarter of fiscal 2024 ended September 30, 2023.

“Dynatrace’s second quarter results exceeded the high end of guidance across all of our key metrics, demonstrating strong top and bottom-line performance," said Rick McConnell, Chief Executive Officer. “These results are a testament to the ongoing durability of demand for observability and application security. Our unified platform, AI leadership, and automation differentiate us from our competitors and position us well for continued growth and success. Given the strength of these results, and our visibility into the second half of the year, we are raising fiscal 2024 guidance across the board."

Second Quarter Fiscal 2024 and Other Recent Business Highlights:
All growth rates are compared to the second quarter of fiscal 2023, unless otherwise noted.

Financial Highlights:
•Total ARR of $1,344 million, up 24% on a constant currency basis
•Total Revenue of $352 million, up 24% on a constant currency basis
•Subscription Revenue of $334 million, up 26% on a constant currency basis
•GAAP Income from Operations of $35 million and Non-GAAP Income from Operations of $106 million
•GAAP EPS of $0.12 and Non-GAAP EPS of $0.31, both on a dilutive basis

Business Highlights:
•Platform innovation: We added Dynatrace® Security Analytics to our existing application security capabilities, enabling customers to identify cyber-attacks, assess their impact, find the indicators of compromise (IOCs) and automatically trigger a response. We also closed the acquisition of Rookout and are working to integrate their live debugging technology into the Dynatrace platform to enable development teams to improve the quality and security of their releases.

•GSI partnerships evolution: We continue to build momentum with key strategic global system integrators (GSIs). We signed a global strategic alliance agreement with Kyndryl to enhance our joint capabilities for cloud, application modernization, and AIOps offerings. We have also entered into a strategic partnership with Accenture bringing together Dynatrace’s unified platform with advanced AIOps and intelligent automation with Accenture’s global professional services capabilities and cloud modernization delivery experience.

•Hyperscalers expansion: We continue to expand our footprint with the hyperscalers, adding regions in São Paulo, Sydney, and Zurich, for a total of 13 regions globally. We also announced the availability of the latest Dynatrace innovations, including the Grail™ data lakehouse, AppEngine, and AutomationEngine, for customers running the platform on Microsoft Azure.





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•Go-to-market momentum: We hosted our annual Innovate event series in LATAM, APAC, and EMEA, with more than 1,200 customers, prospects, and partners attending in person and more than 1,300 attending virtually. These events complement our annual Perform customer conference being held in Las Vegas in January, and they aim to build pipeline as well as customer success as we head into the second half of fiscal 2024.

•ESG progress: We published our inaugural Global Impact Report, which underscores the company’s commitment to understanding, measuring, and communicating progress on environmental, social, and governance (ESG) topics that are important to Dynatrace stakeholders. The report details progress related to Dynatrace’s three ESG pillars - sustaining the environment; people, culture, and community; and governance and ethics. As part of the report, we disclosed our baseline greenhouse gas emissions data for the first time and provided an expanded scope of data on Diversity, Equity, Inclusion and Belonging (DEIB).

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Second Quarter 2024 Financial Highlights
(Unaudited – In thousands, except per share data)
Three Months Ended September 30,
20232022
Key Operating Metric:
Annual recurring revenue$1,343,530 $1,064,951 
Year-over-Year Increase
26 %
Year-over-Year Increase - constant currency (*)
24 %
Revenue:
Total revenue$351,700 $279,326 
Year-over-Year Increase
26 %
Year-over-Year Increase - constant currency (*)
24 %
Subscription revenue
$334,497 $261,306 
Year-over-Year Increase
28 %
Year-over-Year Increase - constant currency (*)
26 %
GAAP Financial Measures:
GAAP income from operations$35,269 $20,399 
GAAP operating margin10 %7 %
GAAP net income$35,809 $10,526 
GAAP net income per share - diluted$0.12 $0.04 
GAAP shares outstanding - diluted297,794 290,601 
Net cash provided by operating activities$36,877 $29,398 
Non-GAAP Financial Measures:
Non-GAAP income from operations (*)
$106,435 $72,888 
Non-GAAP operating margin (*)
30 %26 %
Non-GAAP net income (*)
$93,487 $64,454 
Non-GAAP net income per share - diluted (*)
$0.31 $0.22 
Non-GAAP shares outstanding - diluted (*)
297,794 290,601 
Free Cash Flow (*)
$34,127 $25,067 
* 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 ir.dynatrace.com.


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Financial Outlook
Based on information available as of November 2, 2023, Dynatrace is issuing guidance for the third quarter and updating guidance for full year fiscal 2024 in the table below.
This guidance reflects foreign exchange rates as of September 30, 2023. We now expect foreign exchange to be a headwind of approximately $5 million on ARR and a tailwind of approximately $7 million on revenue for fiscal 2024. Given recent strengthening in the U.S. dollar, this represents an incremental headwind of approximately $16 million to ARR and $8 million to revenue for the full year when compared to our prior guidance.
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 below are compared to the third quarter and full year of fiscal 2023.

(In millions, except per share data)Q3 Fiscal 2024 Guidance
Total revenue
$356 - $359
As reported
20% - 21%
Constant currency
19% - 20%
Subscription revenue
$337 - $340
As reported
21% - 22%
Constant currency
20% - 21%
Non-GAAP income from operations
$94 - $97
Non-GAAP operating margin
26.5% - 27%
Non-GAAP net income
$82 - $85
Non-GAAP net income per diluted share
$0.27 - $0.28
Diluted weighted average shares outstanding
299 - 300

(In millions, except per share data)
Current Guidance
Fiscal 2024
Prior Guidance
Fiscal 2024*
Guidance Change
at Midpoint
Total ARR
$1,480 - $1,490
$1,475 - $1,490
$3
As reported
19% - 20%
18% - 20%
50 bps
Constant currency
19% - 20%
18% - 19%
100 bps
Total revenue
$1,409 - $1,419
$1,400 - $1,415
$7
As reported
22%
21% - 22%
50 bps
Constant currency
21% - 22%
20% - 21%
100 bps
Subscription revenue
$1,334 - $1,344
$1,326 - $1,341
$6
As reported
23% - 24%
22% - 24%
50 bps
Constant currency
22% - 23%
21% - 22%
100 bps
Non-GAAP income from operations
$377 - $386
$357 - $367
$20
Non-GAAP operating margin
27%
25.5% - 26%
125 bps
Non-GAAP net income
$328 - $337
$309 - $320
$18
Non-GAAP net income per diluted share
$1.09 - $1.12
$1.03 - $1.06
$0.06
Diluted weighted average shares outstanding
300 - 301
300 - 301
—
Free cash flow
$313 - $320
$303 - $312
$9
Free cash flow margin
22% - 23%
22%
50 bps
*Prior guidance was issued on August 2, 2023.

Reconciliations of non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share and free cash flow guidance to the most directly comparable GAAP measures are 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
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expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
Conference Call and Webcast Information
Dynatrace will host a conference call and live webcast to discuss its results and business outlook for investors and analysts at 8:00 a.m. Eastern Time today, November 2, 2023. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with conference ID# 13741555. 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 November 16, 2023, by dialing (877) 660-6853 from the U.S. or Canada, or for international callers by dialing (201) 612-7415 and entering conference ID# 13741555. In addition, an archived webcast will be available at ir.dynatrace.com.
We announce material financial information to our investors using our Investor Relations website, press releases, SEC filings and public conference calls and webcasts. We also use these channels to disclose information about the company, our planned financial and other announcements, attendance at upcoming investor and industry conferences, and for complying with our 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. 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.
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 (NRR) 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
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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.
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's why the world's largest organizations trust the Dynatrace® platform 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 regarding the ongoing durability of demand for observability and application security, the company's positioning for growth and success, the integration of Rookout's technology, and statements regarding management’s expectations related to partnerships, strategic alliances, the impact of go-to-market events, and business outlook, including our financial guidance for the third 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 “will,” “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, including through Davis AI; the ability of our platform and solutions to effectively 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; our ability to hire and retain necessary qualified employees to grow our business and expand our operations; our ability to successfully integrate newly acquired businesses and offerings; 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 Form 10-Q filed on November 2, 2023 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.
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DYNATRACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited – In thousands, except per share data)
Three Months Ended
September 30,		Six Months Ended September 30,
2023202220232022
Revenue:
Subscription$334,497 $261,306 $650,951 $510,864 
Service17,203 18,020 33,635 35,735 
Total revenue351,700 279,326 684,586 546,599 
Cost of revenue:
Cost of subscription44,792 35,764 87,696 68,502 
Cost of service15,675 16,052 31,217 31,220 
Amortization of acquired technology3,900 3,888 7,798 7,780 
Total cost of revenue64,367 55,704 126,711 107,502 
Gross profit287,333 223,622 557,875 439,097 
Operating expenses:
Research and development (1)
74,084 52,905 140,366 102,316 
Sales and marketing (1)
127,605 105,348 252,722 211,021 
General and administrative (1)
44,749 38,397 83,843 73,131 
Amortization of other intangibles5,627 6,573 11,387 13,146 
Restructuring and other(1)— — (10)
Total operating expenses252,064 203,223 488,318 399,604 
Income from operations35,269 20,399 69,557 39,493 
Interest income (expense), net8,509 (513)15,655 (2,688)
Other expense, net(3,075)(1,214)(2,823)(3,464)
Income before income taxes40,703 18,672 82,389 33,341 
Income tax expense
(4,894)(8,146)(8,392)(20,701)
Net income$35,809 $10,526 $73,997 $12,640 
Net income per share:
Basic$0.12 $0.04 $0.25 $0.04 
Diluted$0.12 $0.04 $0.25 $0.04 
Weighted average shares outstanding:
Basic293,654 287,190 292,504 286,699 
Diluted297,794 290,601 297,492 290,433 
(1) Prior period results have been updated to allocate depreciation expense to operating expenses based upon location and headcount.
UNAUDITED SHARE-BASED COMPENSATION
Three Months Ended
September 30,		Six Months Ended September 30,
2023202220232022
Cost of revenue$7,197 $5,235 $12,685 $9,125 
Research and development18,177 10,997 31,441 18,282 
Sales and marketing18,877 13,938 32,876 24,014 
General and administrative13,707 10,484 21,474 17,928 
Total share-based compensation$57,958 $40,654 $98,476 $69,349 
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DYNATRACE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
September 30, 2023March 31, 2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents$701,524 $555,348 
Accounts receivable, net262,733 442,518 
Deferred commissions, current84,181 83,029 
Prepaid expenses and other current assets53,148 37,289 
Total current assets1,101,586 1,118,184 
Property and equipment, net46,946 53,576 
Operating lease right-of-use assets, net67,367 68,074 
Goodwill1,309,549 1,281,812 
Other intangible assets, net52,144 63,599 
Deferred tax assets, net113,827 79,822 
Deferred commissions, non-current74,580 86,232 
Other assets16,161 14,048 
Total assets$2,782,160 $2,765,347 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable$15,842 $21,953 
Accrued expenses, current146,775 188,380 
Deferred revenue, current677,837 811,058 
Operating lease liabilities, current15,912 15,652 
Total current liabilities856,366 1,037,043 
Deferred revenue, non-current33,586 34,423 
Accrued expenses, non-current30,392 29,212 
Operating lease liabilities, non-current59,857 59,520 
Deferred tax liabilities305 280 
Total liabilities980,506 1,160,478 
Shareholders' equity:
Common shares, $0.001 par value, 600,000,000 shares authorized, 294,293,922 and 290,411,108 shares issued and outstanding at September 30, 2023 and March 31, 2023, respectively
294 290 
Additional paid-in capital2,114,472 1,989,797 
Accumulated deficit(279,392)(353,389)
Accumulated other comprehensive loss(33,720)(31,829)
Total shareholders' equity1,801,654 1,604,869 
Total liabilities and shareholders' equity$2,782,160 $2,765,347 
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DYNATRACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited – In thousands)
Six Months Ended
September 30,
20232022
Cash flows from operating activities:
Net income$73,997 $12,640 
Adjustments to reconcile net income to cash provided by operations:
Depreciation
7,890 5,746 
Amortization
19,207 21,068 
Share-based compensation
98,476 69,349 
Deferred income taxes
(35,166)— 
Other
3,019 4,484 
Net change in operating assets and liabilities:
Accounts receivable
177,689 153,512 
Deferred commissions
8,978 (3,618)
Prepaid expenses and other assets
(22,909)25,128 
Accounts payable and accrued expenses
(33,246)(14,428)
Operating leases, net
1,333 44 
Deferred revenue
(128,488)(101,429)
Net cash provided by operating activities
170,780 172,496 
Cash flows from investing activities:
Purchase of property and equipment
(13,017)(11,237)
Acquisition of a business, net of cash acquired(32,391)— 
Net cash used in investing activities
(45,408)(11,237)
Cash flows from financing activities:
Repayment of term loans
— (60,000)
Proceeds from employee stock purchase plan
9,584 8,627 
Proceeds from exercise of stock options16,619 4,332 
Equity repurchases
— (15)
Net cash provided by (used in) financing activities
26,203 (47,056)
Effect of exchange rates on cash and cash equivalents(5,399)(13,740)
Net increase in cash and cash equivalents146,176 100,463 
Cash and cash equivalents, beginning of period555,348 462,967 
Cash and cash equivalents, end of period$701,524 $563,430 
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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except percentages)
Three Months Ended September 30, 2023
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of other intangiblesRestructuring & otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$64,367 $(7,197)$(309)$(3,900)$— $52,961 
Gross profit287,333 7,197 309 3,900 — 298,739 
Gross margin82 %85 %
Research and development74,084 (18,177)(933)— — 54,974 
Sales and marketing127,605 (18,877)(760)— 198 108,166 
General and administrative44,749 (13,707)(299)— (1,579)29,164 
Amortization of other intangibles5,627 — — (5,627)— — 
Restructuring and other(1)— — — 1 — 
Income from operations$35,269 $57,958 $2,301 $9,527 $1,380 $106,435 
Operating margin10 %30 %

Three Months Ended September 30, 2022
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of other intangiblesRestructuring & otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$55,704 $(5,235)$(128)$(3,888)$(30)$46,423 
Gross profit223,622 5,235 128 3,888 30 232,903 
Gross margin80 %83 %
Research and development (1)
52,905 (10,997)(381)— — 41,527 
Sales and marketing (1)
105,348 (13,938)(300)— — 91,110 
General and administrative (1)
38,397 (10,484)(231)— (304)27,378 
Amortization of other intangibles6,573 — — (6,573)— — 
Restructuring and other— — — — — — 
Income from operations$20,399 $40,654 $1,040 $10,461 $334 $72,888 
Operating margin7 %26 %
(1) Prior period results have been updated to allocate depreciation expense to operating expenses based upon location and headcount.




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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Three Months Ended September 30,
20232022
Non-GAAP net income:
Net income$35,809 $10,526 
Income tax expense4,894 8,146 
Non-GAAP effective cash tax(21,928)(7,967)
Interest (income) expense, net(8,509)513 
Cash received from (paid for) interest, net8,980 (467)
Share-based compensation57,958 40,654 
Employer payroll taxes on employee stock transactions2,301 1,040 
Amortization of other intangibles5,627 6,573 
Amortization of acquired technology3,900 3,888 
Transaction, restructuring, and other1,380 334 
Loss on currency translation3,075 1,214 
Non-GAAP net income$93,487 $64,454 
Share count:
Weighted-average shares outstanding - basic293,654 287,190 
Weighted-average shares outstanding - diluted297,794 290,601 
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic293,654 287,190 
Weighted-average shares outstanding - diluted297,794 290,601 
Non-GAAP net income per share:
Net income per share - basic$0.12 $0.04 
Net income per share - diluted$0.12 $0.04 
Non-GAAP net income per share - basic$0.32 $0.22 
Non-GAAP net income per share - diluted$0.31 $0.22 

Three Months Ended September 30,
20232022
Free Cash Flow:
Net cash provided by operating activities$36,877 $29,398 
Purchase of property and equipment(2,750)(4,331)
Free Cash Flow$34,127 $25,067 
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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except percentages)
Six Months Ended September 30, 2023
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of other intangiblesRestructuring & otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$126,711 $(12,685)$(1,232)$(7,798)$— $104,996 
Gross profit557,875 12,685 1,232 7,798 — 579,590 
Gross margin81 %85 %
Research and development140,366 (31,441)(3,195)— — 105,730 
Sales and marketing252,722 (32,876)(2,312)— 198 217,732 
General and administrative83,843 (21,474)(765)— (3,986)57,618 
Amortization of other intangibles11,387 — — (11,387)— — 
Restructuring and other— — — — — — 
Income from operations$69,557 $98,476 $7,504 $19,185 $3,788 $198,510 
Operating margin10 %29 %

Six Months Ended September 30, 2022
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of other intangiblesRestructuring & otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$107,502 $(9,125)$(412)$(7,780)$(380)$89,805 
Gross profit439,097 9,125 412 7,780 380 456,794 
Gross margin80 %84 %
Research and development (1)
102,316 (18,282)(930)— — 83,104 
Sales and marketing (1)
211,021 (24,014)(898)— — 186,109 
General and administrative (1)
73,131 (17,928)(442)— (383)54,378 
Amortization of other intangibles13,146 — — (13,146)— — 
Restructuring and other(10)— — — 10 — 
Income from operations$39,493 $69,349 $2,682 $20,926 $753 $133,203 
Operating margin7 %24 %
(1) Prior period results have been updated to allocate depreciation expense to operating expenses based upon location and headcount.


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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Six Months Ended September 30,
20232022
Non-GAAP net income:
Net income$73,997 $12,640 
Income tax expense8,392 20,701 
Non-GAAP effective cash tax(40,470)(14,374)
Interest (income) expense, net(15,655)2,688 
Cash received from (paid for) interest, net14,492 (2,533)
Share-based compensation98,476 69,349 
Employer payroll taxes on employee stock transactions7,504 2,682 
Amortization of other intangibles11,387 13,146 
Amortization of acquired technology7,798 7,780 
Transaction, restructuring, and other3,788 753 
Loss on currency translation2,823 3,464 
Non-GAAP net income$172,532 $116,296 
Share count:
Weighted-average shares outstanding - basic292,504 286,699 
Weighted-average shares outstanding - diluted297,492 290,433 
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic292,504 286,699 
Weighted-average shares outstanding - diluted297,492 290,433 
Non-GAAP net income per share:
Net income per share - basic$0.25 $0.04 
Net income per share - diluted$0.25 $0.04 
Non-GAAP net income per share - basic$0.59 $0.41 
Non-GAAP net income per share - diluted$0.58 $0.40 


Six Months Ended September 30,
20232022
Free Cash Flow:
Net cash provided by operating activities
$170,780 $172,496 
Purchase of property and equipment(13,017)(11,237)
Free Cash Flow$157,763 $161,259 
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Contacts

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

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





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