Dynatrace(US:DT)2026-02-09 11:34Financial Performance - Dynatrace reported a total ARR of $1,972 million, reflecting a year-over-year increase of 20%, or 16% on a constant currency basis[7] - Total revenue reached $515 million, marking an 18% increase, or 16% on a constant currency basis[7] - Subscription revenue was $493 million, also up 18%, or 16% on a constant currency basis[7] - Total revenue for the three months ended December 31, 2025, was $515,473,000, representing a 18.2% increase from $436,169,000 in the same period of 2024[35] - Subscription revenue reached $493,372,000 for the three months ended December 31, 2025, up 18.3% from $417,207,000 in the prior year[35] - Gross profit for the nine months ended December 31, 2025, was $1,215,862,000, compared to $1,018,420,000 for the same period in 2024, reflecting a 19.4% increase[35] - Operating income for the three months ended December 31, 2025, was $72,738,000, a 53.2% increase from $47,464,000 in the same quarter of 2024[35] - Net income for the three months ended December 31, 2025, was $40,055,000, a significant decrease from $361,752,000 in the same period of 2024 due to tax benefits in the prior year[35] - The company reported a basic net income per share of $0.13 for the three months ended December 31, 2025, down from $1.21 in the same quarter of 2024[35] - Non-GAAP net income for the three months ended December 31, 2025, was $134,666, up from $111,679 in 2024, indicating a year-over-year increase of 20.4%[45] - Non-GAAP gross profit for the nine months ended December 31, 2025, reached $1,251,049, compared to $1,059,999 in 2024, reflecting a growth of 18.1%[43] Operating Margins - GAAP operating margin improved to 14%, up from 11% in the previous year, while non-GAAP operating margin remained at 30%[11] - Non-GAAP operating margin remained stable at 30% for both the three months ended December 31, 2025, and 2024[43] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2025, totaled $1,091,534,000, an increase from $1,017,039,000 as of March 31, 2025[39] - The company reported a net cash provided by operating activities of $33,780 for the three months ended December 31, 2025, down from $42,238 in 2024, a decrease of 20.3%[45] - Free cash flow for the three months ended December 31, 2025, was $27,234, down from $37,569 in 2024, showing a decline of 27.5%[45] - The company experienced a net cash used in financing activities of $150,365 for the three months ended December 31, 2025, compared to $27,465 in 2024, reflecting a significant increase in cash outflow[41] Shareholder Actions - Dynatrace announced a new $1 billion share repurchase program, following the completion of a $500 million buyback program[4] Guidance and Expectations - The company expects a foreign exchange tailwind of approximately $49 million on ARR and $37 million on revenue for fiscal 2026[13] - Guidance for fiscal 2026 ARR is updated to $2,053 - $2,061 million, reflecting an increase from prior guidance[15] Assets and Liabilities - Total assets as of December 31, 2025, were $4,100,660,000, slightly down from $4,139,678,000 as of March 31, 2025[39] - The company’s total liabilities decreased to $1,351,581,000 as of December 31, 2025, from $1,518,530,000 as of March 31, 2025[39] - Shareholders' equity increased to $2,749,079,000 as of December 31, 2025, compared to $2,621,148,000 as of March 31, 2025[39] New Initiatives - Dynatrace unveiled Dynatrace Intelligence, a new AI-powered operations system, and expanded cloud-native integrations across major platforms[7]