Dynatrace(DT) - 2021 Q2 - Quarterly Report

Cover Page and Filing Information Dynatrace, Inc. filed its Quarterly Report on Form 10-Q for the period ended September 30, 2020, with its common stock trading on the NYSE under DT - Dynatrace, Inc. filed its Quarterly Report on Form 10-Q for the period ended September 30, 2020[2] - The company's common stock trades on the New York Stock Exchange under the symbol DT[3] - Dynatrace is classified as a non-accelerated filer and an emerging growth company[3] - As of October 26, 2020, there were 282,096,515 shares of common stock outstanding[4] PART I - FINANCIAL INFORMATION This section presents Dynatrace's unaudited condensed consolidated financial statements and related disclosures Item 1. Condensed Consolidated Financial Statements (Unaudited) Presents Dynatrace's unaudited condensed consolidated financial statements for the period ended September 30, 2020, including key financial statements and notes - The accompanying interim condensed consolidated financial statements are unaudited and prepared on the same basis as the audited consolidated financial statements, including all normal and recurring adjustments necessary for fair presentation[50] Condensed Consolidated Balance Sheets Presents the company's financial position at September 30, 2020, and March 31, 2020 | Metric | Sep 30, 2020 (in thousands) | Mar 31, 2020 (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $248,437 | $213,170 | | Accounts receivable, net | $110,251 | $157,058 | | Total current assets | $461,139 | $469,925 | | Goodwill | $1,271,602 | $1,270,733 | | Total assets | $2,056,160 | $2,042,080 | | Deferred revenue, current | $349,541 | $384,060 | | Total current liabilities | $451,535 | $488,900 | | Long-term debt | $480,941 | $509,985 | | Total liabilities | $1,033,248 | $1,080,583 | | Total shareholders' equity | $1,022,912 | $961,497 | Condensed Consolidated Statements of Operations Details the company's revenues, expenses, and net income (loss) for the three and six months ended September 30, 2020 and 2019 | Metric | Three Months Ended Sep 30, 2020 (in thousands) | Three Months Ended Sep 30, 2019 (in thousands) | Six Months Ended Sep 30, 2020 (in thousands) | Six Months Ended Sep 30, 2019 (in thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Subscription Revenue | $157,673 | $115,805 | $302,030 | $223,933 | | Total Revenue | $168,586 | $129,378 | $324,094 | $251,928 | | Gross Profit | $137,875 | $89,832 | $264,841 | $182,839 | | Income (Loss) from Operations | $22,831 | $(154,523) | $46,937 | $(187,529) | | Net Income (Loss) | $17,479 | $(417,334) | $30,344 | $(466,489) | | Basic Net Income (Loss) per Share | $0.06 | $(1.58) | $0.11 | $(1.86) | | Diluted Net Income (Loss) per Share | $0.06 | $(1.58) | $0.11 | $(1.86) | - Net income significantly improved from a loss of $(417.3) million in the three months ended September 30, 2019, to a profit of $17.5 million in the same period of 2020[14] Condensed Consolidated Statements of Comprehensive Income (Loss) Outlines the components of comprehensive income (loss) for the three and six months ended September 30, 2020 and 2019 | Metric | Three Months Ended Sep 30, 2020 (in thousands) | Three Months Ended Sep 30, 2019 (in thousands) | Six Months Ended Sep 30, 2020 (in thousands) | Six Months Ended Sep 30, 2019 (in thousands) | | :-------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net income (loss) | $17,479 | $(417,334) | $30,344 | $(466,489) | | Foreign currency translation adjustment, net of tax | $(2,792) | $2,691 | $(5,134) | $4,528 | | Total other comprehensive (loss) income | $(2,792) | $9,314 | $(5,134) | $11,151 | | Comprehensive income (loss) | $14,687 | $(408,020) | $25,210 | $(455,338) | - Comprehensive income (loss) improved from a loss of $(408.0) million in the three months ended September 30, 2019, to an income of $14.7 million in the same period of 2020[16] Condensed Consolidated Statements of Shareholders' Equity / Member's Deficit Summarizes changes in shareholders' equity for the six months ended September 30, 2020 and 2019 | Metric | Balance, June 30, 2020 (in thousands) | Balance, September 30, 2020 (in thousands) | | :-------------------------------- | :------------------------------------ | :--------------------------------------- | | Common Shares (Amount) | $281 | $281 | | Additional Paid-In Capital | $1,589,598 | $1,609,246 | | Accumulated Deficit | $(580,855) | $(563,376) | | Accumulated Other Comprehensive Loss | $(20,447) | $(23,239) | | Shareholders' Equity | $988,577 | $1,022,912 | - Total shareholders' equity increased by $34.3 million from June 30, 2020, to September 30, 2020[24] - Net income of $17.5 million contributed to the reduction of the accumulated deficit during the three months ended September 30, 2020[24] Condensed Consolidated Statements of Cash Flows Presents the cash inflows and outflows from operating, investing, and financing activities for the six months ended September 30, 2020 and 2019 | Cash Flow Activity | Six Months Ended Sep 30, 2020 (in thousands) | Six Months Ended Sep 30, 2019 (in thousands) | | :-------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net income (loss) | $30,344 | $(466,489) | | Net cash provided by (used in) operating activities | $60,849 | $(218,228) | | Net cash used in investing activities | $(6,584) | $(10,322) | | Net cash (used in) provided by financing activities | $(21,604) | $390,269 | | Net increase in cash and cash equivalents | $35,267 | $160,382 | | Cash and cash equivalents, end of period | $248,437 | $211,696 | - Cash provided by operating activities significantly improved to $60.8 million for the six months ended September 30, 2020, compared to cash used of $218.2 million in the prior year period[34][209] - Cash paid for interest decreased from $27.4 million in the six months ended September 30, 2019, to $6.9 million in the same period of 2020[34][208] [Notes to Condensed Consolidated Financial Statements](index=10&type=section