Dynatrace Inc. (NYSE: DT) reported Q1 EPS of $0.13, $0.03 better than the analyst estimate of $0.10. Revenue for the quarter came in at $155.5 million versus the consensus estimate of $149.61 million.

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

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

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

Financial Highlights:

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

GUIDANCE:

Dynatrace Inc. sees Q2 2021 EPS of $0.09-$0.10, versus the consensus of $0.10. Dynatrace Inc. sees Q2 2021 revenue of $159-161 million, versus the consensus of $154.25 million.

Dynatrace Inc. sees FY2021 EPS of $0.46-$0.49, versus the consensus of $0.41. Dynatrace Inc. sees FY2021 revenue of $646-656 million, versus the consensus of $640.59 million.

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

Second Quarter of Fiscal Year 2021:

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

Full Year Fiscal 2021:

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

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

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