Dynatrace Inc. (NYSE: DT) reported Q3 EPS of $0.17, $0.04 better than the analyst estimate of $0.13. Revenue for the quarter came in at $182.9 million versus the consensus estimate of $172.33 million.

Third Quarter Fiscal 2021 and Other Recent Business Highlights:

All growth rates are compared to the third quarter of fiscal 2020 unless otherwise noted.

Financial Highlights:

• Total ARR of $722.0 million, an increase of 35% as reported, and 32% on a constant currency basis
• Total Revenue of $182.9 million, an increase of 28% as reported, and 25% on a constant currency basis
• Subscription revenue of $170.3 million, an increase of 33% as reported, and 30% on a constant currency basis, and representing 93% of total revenue
• GAAP Operating Income of $24.1 million and Non-GAAP Operating Income of $53.4 million
• GAAP EPS of $0.06 and non-GAAP EPS of $0.17, on a dilutive basis

"The third quarter marked another strong performance for Dynatrace across all of our key operating metrics led by ARR growth of 35% year-over-year,” stated John Van Siclen, Chief Executive Officer. “The value of the Dynatrace platform is resonating with customers, evidenced by strong new logo growth and net expansion rate again above 120%. The acceleration of digital transformation is driving the scale and complexity of the modern multicloud beyond the level that digital teams can handle efficiently. We believe the automation and AI capabilities embedded in our unified platform solve the challenges inherent in these ever-changing multicloud environments and positions us well for strong and sustained ARR growth."

GUIDANCE:

Dynatrace Inc. sees Q4 2021 EPS of $0.13-$0.14, versus the consensus of $0.12. Dynatrace Inc. sees Q4 2021 revenue of $190-192 million, versus the consensus of $176.42 million.

Dynatrace Inc. sees FY2021 EPS of $0.61-$0.62, versus the consensus of $0.56. Dynatrace Inc. sees FY2021 revenue of $756-760 million, versus the consensus of $672.9 million.

Based on information available, as of February 3, 2021, Dynatrace is issuing guidance for the fourth quarter and raising guidance for full year fiscal 2021 as follows:

Fourth Quarter of Fiscal Year 2021:

• Total revenue is expected to be in the range of $190 million to $192 million, 26% to 28% growth as reported, and 23% to 24% on a constant currency basis
• Subscription revenue is expected to be in the range of $178 million to $180 million, 32% to 33% growth as reported, 28% to 29% on a constant currency basis
• Non-GAAP operating income is expected to be in the range of $44 million to $46 million
• Non-GAAP net income is expected to be in the range of $38 million to $40 million
• Non-GAAP net income per diluted share is expected to be in the range of $0.13 to $0.14, based on a range of 288 million to 289 million diluted weighted-average shares outstanding

Full Year Fiscal 2021:

• Total ARR is expected to be in the range of $756 million to $760 million, 32% to 33% growth as reported, and 29% on a constant currency basis
• Total revenue is expected to be in the range of $697 million to $699 million, 28% growth as reported, and 27% growth on a constant currency basis
• Subscription revenue is expected to be in the range of $650 million to $652 million, 33% to 34% growth as reported, and 32% growth on a constant currency basis
• Non-GAAP operating income is expected to be in the range of $202 million to $204 million
• Non-GAAP net income is expected to be in the range of $175 million to $178 million
• Non-GAAP net income per diluted share is expected to be in the range of $0.61 to $0.62, based on a range of 287 million to 288 million diluted weighted-average shares outstanding
• Total unlevered free cash flow is expected to be in the range of $220 million to $225 million, 32% of revenue

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