Dynatrace Inc. (NYSE: DT) reported Q4 EPS of $0.11, $0.03 better than the analyst estimate of $0.08. Revenue for the quarter came in at $150.6 million versus the consensus estimate of $146.31 million.

Fourth Quarter Fiscal 2020 and Other Recent Business Highlights:

• Subscription and Services revenue of $148.3 million, a year-over-year increase of 37%
• Annualized recurring revenue "ARR" of $572.8 million, a year-over-year increase of 42%
• GAAP EPS of $0.16 and non-GAAP EPS of $0.11

Fourth Quarter Fiscal 2020 Financial Highlights:

• Total Revenue of $150.6 million, an increase of 30% compared to $116.2 million in Q4 2019
• Total ARR of $572.8 million, an increase of 42% compared to $403.3 million at the end of Q4 2019
• Subscription and Services revenue of $148.3 million, an increase of 37% compared to $108.6 million in Q4 2019, and representing 98% of total revenue
• GAAP Operating Income of $8.0 million and Non-GAAP Operating Income of $36.0 million
• GAAP EPS of $0.16 and non-GAAP EPS of $0.11

“COVID-19 and the sudden shift to remote work has caused applications and the clouds they run on to become an even more essential way to provide services, drive revenue, engage customers and collaborate among teams.” Said John Van Siclen, Dynatrace’s CEO. “We continue to work closely with our customers to help them respond to their rapidly changing workloads and requirements, enabling faster innovation, easier collaboration and greater efficiency without wasted motion. Despite these challenging times, our strong platform differentiation, balanced business model, and world-class team put us in a strong position for continued success in the world ahead.”

GUIDANCE:

Dynatrace Inc. sees Q1 2021 EPS of $0.09-$0.10, versus the consensus of $0.07. Dynatrace Inc. sees Q1 2021 revenue of $148-150 million, versus the consensus of $153.1 million.

Dynatrace Inc. sees FY2021 EPS of $0.39-$0.42, versus the consensus of $0.28. Dynatrace Inc. sees FY2021 revenue of $630-643 million, versus the consensus of $541.27 million.

Based on information available, as of May 12, 2020, Dynatrace is issuing guidance for the first quarter fiscal 2021 and full year fiscal 2021 as follows:

First Quarter of Fiscal Year 2021:

• Total revenue, as reported, is expected to be in the range of $148.0 million to $150.0 million, 24% to 25% growth, when adjusted for constant currency
• Non-GAAP operating income is expected to be in the range of $38.0 million to $40.0 million
• Non-GAAP net income is expected to be in the range of $26.5 million to $28.0 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 290 million to 291 million diluted weighted-average shares

Full Year Fiscal 2021:

• Total revenue, as reported, is expected to be in the range of $630.0 million to $643.0 million, 17% to 20% growth, when adjusted for constant currency
• Total Subscription revenue, as reported, is expected to be in the range of $591.0 million to $601.0 million, 23% to 25% growth, when adjusted for constant currency
• Total ARR is expected to be in the range of $680.0 million to $692.0 million
• Non-GAAP operating income is expected to be in the range of $146.0 million to $156.0 million
• Non-GAAP net income is expected to be in the range of $115.0 million to $123.0 million
• Non-GAAP net income per diluted share is expected to be in the range of $0.39 to $0.42, based on a range of 293 million to 295 million diluted weighted-average shares
• Total unlevered free cash flow is expected to be in the range of $180.0 million to $190.0 million

Our revenue and subscription revenue guidance is based on foreign exchange rates as of March 31, 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 now operating under very challenging circumstances and may reduce or re-evaluate their spend. As such, in our first 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 challenging economic environment through the first quarter of 2021 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.

For earnings history and earnings-related data on Dynatrace Inc. (DT) click here.