Dynatrace (NYSE: DT), the leader in unified observability and security, announced financial results for the first quarter of fiscal 2024 ended June 30, 2023.
“Dynatrace’s first quarter results exceeded guidance across all our key metrics, demonstrating the powerful combination of growth and profitability,” said Rick McConnell, Chief Executive Officer. “Observability and application security are becoming critical to the success of organizations around the world. Our rapid pace of continuous innovation has made Dynatrace an industry leader for more than a decade. We believe hypermodal AI and developer observability will be catalysts for incremental future growth as they are expected to extend our reach to a wider range of users and accelerate the creation of even more workloads.”
First Quarter Fiscal 2024 and Other Recent Business Highlights:
All growth rates are compared to the first quarter of fiscal 2023, unless otherwise noted.
Financial Highlights:
- Total ARR of $1,294 million, up 25% on a constant currency basis
- Total Revenue of $333 million, up 25% on a constant currency basis
- Subscription Revenue of $316 million, up 27% on a constant currency basis
- GAAP Operating Income of $34 million and Non-GAAP Operating Income of $92 million
- GAAP EPS of $0.13 and Non-GAAP EPS of $0.27, both on a dilutive basis
Business Highlights:
- Analyst recognition: Dynatrace was named a Leader and positioned highest for Ability to Execute and furthest for Completeness of Vision in the 2023 Gartner Magic Quadrant for Application Performance Monitoring and Observability. This is the 13th consecutive time that Gartner has named Dynatrace a Leader in this report. In addition, Dynatrace was ranked #1 in all six Use Cases for its platform in the 2023 Gartner Critical Capabilities for Application Performance Monitoring and Observability report.
- Platform expansion: We announced an expansion of our Davis AI engine to deliver the observability and security industry’s first hypermodal artificial intelligence (AI), converging fact-based predictive and causal AI insights with new generative AI capabilities. We also signed a definitive agreement to acquire Rookout to extend the value the Dynatrace platform delivers to engineers and developers working in cloud-native environments with capabilities that enable live and secure debugging of actively running code. This addition will enable developers to improve the quality and security of their releases.
- Extended partnerships: We continue to build momentum with our strategic global system integrators (GSIs). Sales pipeline contribution from one of our largest strategic GSI partners more than doubled when compared to last year. In addition, we announced a new multi-year consumption commitment and go-to-market partnership with Microsoft, which includes joint sales enablement and marketing initiatives to further increase adoption of the Dynatrace platform on Microsoft Azure. We also expanded our collaboration with Red Hat with new integration capabilities between Dynatrace and Red Hat Event-Driven Ansible to automate DevSecOps use cases, including closed-loop problem and security remediation, application healing, and incident response.