dynatrace earnings call transcript

We continue to track very well here and expect to be substantially complete with moving our customers to our new platform in the next four quarters. More and more running the business applications are being deployed into the enterprise cloud while visibility and situational awareness are declining. Our non-GAAP gross margin was 82.5% for the second quarter, an improvement compared to 80.5% in the second quarter of fiscal '19. That's helpful. But as you pointed out, we see them extremely complementary. The value is certainly extremely high when you can bring business metrics tied with performance and user experience together in real-time for digital business owners. Well, so new customers, net new logos to the business continue to be the majority of the Dynatrace growth, quarter-over-quarter growth. Listen to on-demand earnings calls of Dynatrace Inc (DT) stock And then seeing the net expansion north of 120% is great. Dynatrace Managed monitoring. In addition to adding new modules to the Dynatrace platform, we continue to extend existing platform capabilities as well. To receive updates for this company you can register by emailing info@investornetwork.com or by clicking get investment info from the company's profile. After looking at a number of cloud monitoring solutions, the insurer selected Dynatrace as they've determined that it was the only platform that could show them the cost of outages in the context of application performance and how degradations and performance impacted their call center operations. After a bad experience with their previous supplier, a gen 2 player who missed the market transition to the enterprise cloud, the company acquired its initial licenses for Dynatrace in the second quarter of this calendar year for an initial set of applications running in Azure. That is starting to expand well. In general, the greenfield is about 1/3 of what we see. But when new management came on board and prioritized digital transformation, their needs and urgency quickly changed. Your next question will come from the line of Brent Thill with Jefferies. And with this, the appreciation of understanding user experience has climbed dramatically. Your next question will come from the line of Bhavan Suri of William Blair. NEW YORK, NY / ACCESSWIRE / October 28, 2020/ Dynatrace Inc (NYSE: DT) will be discussing their earnings results in their 2021 Second Quarter Earnings call to be held on October 28, 2020 at 8:00 AM Eastern Time. The Dow Jones Industrial Average sank after President Donald Trump issued a coronavirus stimulus demand. https://www.investornetwork.com/event/presentation/68803, https://www.accesswire.com/612478/Dynatrace-Inc-to-Host-Earnings-Call. Has the stock market come on too far, too fast? Find the latest Earnings Report Date for Dynatrace, Inc. Common Stock (DT) at Nasdaq.com. So healthy new logos, as you point out, and room to increase that rate as we free up the sales organization in four short quarters here. We are consistently winning new cloud business against all competitors. As we just said -- let me just add real quick that this is a product extensionary that we've been eyeing for a while. On the one hand, technological changes impact businesses, but on the other hand, Berkshire owns the Burlington Northern railroad. Since the end of the second quarter, we paid down $30 million of debt, and our current debt balance is $540 million. But still early days, and there's still a lot of headroom just on that application side before you even get to the cross-sell into additional ITOM use cases. But over time, we'll expand that monetization opportunity, as I said, some additional analytics become available and some other pieces that we have on the road map to extend our functionality in this area to fit the business user needs. You saw a nice uptick in new customers in the quarter versus last quarter and well above where you were in 4Q. This is Caroline on for Heather. Dynatrace provides answers to the underlying issues affecting user journeys, enabling them to optimize user experience and improve conversion rates. We believe Dynatrace's financial profile is highly unique, including meaningful scale, strong growth, healthy profitability and cash flow. It’s no wonder so many people are using this Princeton alum’s network of financial advisors to get qualified, expert retirement guidance and advice. At time of IPO, we added two outside Board members, and Steve Lifshatz, CFO of Lytx, and prior to that, Fleetmatics; and Mike Capone, CEO of Qlik, both accomplished businessmen and directors. Five analysts have provided estimates for Dynatrace’s earnings. Information on stock, financials, earnings, subsidiaries, investors, and executives for Dynatrace. As of September 30, we had cash and cash equivalents of $211.7 million, and our long-term debt was $569.8 million. ( 108,061 followers) Dynatrace, Inc. (NYSE: DT) Q4 2020 Results Earnings Conference Call. Maybe what are you seeing in terms of the number of APM hosts deployed on that initial land in the recent cohort of customers relative to what you saw in the past. MongoDB, Inc. (MDB) Q3 2021 Earnings Call Transcript. So, from a conversion standpoint, the new platform is extremely sticky. It's just that you've sort of forgotten about the fact that they all got swallowed up a handful of big players and turned into sort of suites of tooling. But now we see the workloads starting to hit the cloud platforms at an accelerated rate. This was above our guidance of $0.04 per share. So that's the way we think about it. Dynatrace’s growth—8% year-over-year for fiscal 2019—is slightly outpaced by AppDynamics, Rich said, but it has plenty of room for growth … Matt Hedberg -- RBC Capital Markets -- Analyst. 11/17 08:00. Ellison is the main employer of Lanai’s 3,000 residents. Well, today, I would say that from the sort of -- if you're asking what's the order of magnitude of the monetization, I'd say that it's in the sort of a 10% of sort of host unit, maybe probably not $1 per $1 with DEM. If you John, if you've like a lot of the questions on the call were obviously around like product and how --observability because you have so many different players. Sometimes, we do come in with system integrators. Commenting on the recent surge in tech companies' value, Munger said he has never seen anything like it.Munger compared Apple Inc (NASDAQ: AAPL) to John D Rockefeller's empire. Let me now turn to four major advancements made in our fiscal Q2. What we see in our world, as you know, we land with APM sort of as a core strength, the application, user-experience segments. For more info, reach out to us at info@alphastreet.com. Bhavan Suri -- William Blair and Company -- Analyst. Thank you, John, and good afternoon, everyone. You offer a separate SKU there, obviously. Turning to revenue. Got it. Market data powered by FactSet and Web Financial Group. Dynatrace blog. We continue to win against all competition in that area and as evidenced with the new logo growth as we go forward. Warren Buffet's aide believes that the market is on "the edge of playing with fire. With that said, we remain focused on investing for long-term growth and plan to reinvest some of the revenue upside we expect for the full year back into the business which is reflected in our guidance. That's great. This optimism is reflected in the increased top line guidance that Kevin will detail in a few minutes. But over time, it should be equivalent to what the DEM module brings, which is -- think of it as maybe $0.50 on the dollar of host units. "I can remember having a five-course filet mignon dinner in Omaha for 60 cents when I was a little boy. September 4, 2019 5:00 P.M. Our healthy RPO expansion has benefited from our move to a subscription-based news combined with an increase in the duration of our new subscription agreement. Rajasekar T. answered Rajasekar T. 's question . Munger said that the railroad is the most old-fashioned business he can think of and that it has been successful "not by conquering change but by avoiding it. Most people are celebrating. Find the latest Dynatrace, Inc. (DT) stock quote, history, news and other vital information to help you with your stock trading and investing. The Dow Jones Industrial Average hit new session highs midday as Apple rallies and lawmakers set to discuss a coronavirus stimulus deal. It really is a tribute to our world-class engineering led by Bernd Greifeneder, our CTO and Founder, and the next-generation architecture he and his key architects reimagined five years ago. And we're starting to see it play out in growing scale. I'm especially pleased that ARR increased by a robust 44% year on year to $471 million, with our new Dynatrace platform now making up 80% of total ARR, up from 75% a quarter ago. We use that to expand. As a result, we have removed the impact of the spin tax from our non-GAAP net income and unlevered free cash flow calculations. Dynatrace reinvented. And it's as fast as we can get out there and have customers to suspend disbelief just long enough to believe that something else, something out there could actually do all this. We don't just try to put more metrics out than somebody else. Ashburn: Startup Is Changing the Way People Retire, Apartment Investment Completes Separation Into Two Companies, The stock market flashes a major new sell signal: BofA survey. Dynatrace is an American technology company that produces a software intelligence platform based on artificial intelligence to monitor and optimize application performance and development, IT infrastructure, and user experience for businesses and government agencies throughout the world.. As John indicated, we believe the best measure and reflection of our ongoing revenue growth profile is the combination of subscription and services revenue which was $126.6 million in the quarter, representing 98% of total revenue and an increase of 37% on a year-over-year basis. And I'm really excited about where we are in a competitive position at the right time in the market as this transition to enterprise cloud and the dynamism of these orchestrated workloads -- microservices workloads really hit production at a high level. So, our competitive position continues to be very strong. 5 Replies. We continue to build on our track record of rapidly expanding with customers once they are on the Dynatrace platform. And as we talked about before, we target the global 15,000 enterprises. “We say sell the vaccine in the first quarter 2021.”BofA is weighing in on the dilemma that many market players face at the end of the year: whether to reap the returns in stocks and turn defensive now, or continue buying on bets that the rally can extend into 2021.The surveyed investors were also the most optimistic on equities since January 2018, while hedge funds’ exposure to stocks remains elevated at 43%, according to BofA.The drop in cash levels and upbeat outlook on growth signal an early-stage economic recovery similar to those seen after the 2008 financial crisis and the dot-com bubble, BofA said.“Recovery expectations have also surpassed prior recessions in both speed and magnitude,” the strategists said.When exiting cash, money managers pounced on value, emerging-market, U.K., banking and consumer discretionary stocks, while reducing exposure to U.S. and health-care equities as well as bonds. Not only did our top-line results exceed our Q2 guidance, our bottom line delivered stronger-than-expected results as well. As a result of these changes, total gross margins have increased, as I just mentioned. It is worth pointing out that we expect the combination of subscription and services to grow over 30% in the third quarter. The automatic continuous discovery and instrumentation, the automatic self-adjusting baselines, the automatic problem determination prioritized by business impact all contribute to rapid rollout and high value for low-effort economics our customers enjoy. Tesla Inc. Chief Executive Officer Elon Musk, a friend of Ellison’s, said last week that he had left California for Texas. So that's how we go-to-market today. Dynatrace Named One of the Top 10 Highest-Rated Cloud Companies to Work For by Battery Ventures and Glassdoor. For the second quarter, ARR was $470.9 million, an increase of 44% year over year. December 8, 2020 December 8, 2020. We believe the added sales time and effort we've been spending on a near-term perspective is well worth it over the long term as we have transitioned our own business to drive sustainable growth and predictability. We have the industry-leading solution there. The market needs our kind of platform for dynamic web-scale workloads. Incorrect Response Time Captured in Dynatrace for Mule Service (4.1) dynatrace saas RUM host monitoring application monitoring performance monitoring. And the follow-up is just in regard to pricing structure in logging, how do you guys feel about that given where Datadog is and also, the changes being made at Splunk? Use the PitchBook Platform to explore the full profile. 2 Likes. Shares of General Electric Co. rallied Tuesday toward their first gain in four trading days, after two Wall Street analysts raised their price targets by more than 40%, both on upbeat outlooks for 2021. And then also, are you seeing those customers add additional workloads as they convert over? Learn more. ... Dynatrace Earnings Top Estimates, Revenue Guidance Above Views. The company rapidly transitioned from third-party-developed applications run in a traditional data center to in-house-developed applications run in a new enterprise cloud. This survey says stocks could be headed for a breather soon. Cumulative Growth of a $10,000 Investment in Stock Advisor, Dynatrace Holdings LLC (DT) Q2 2020 Earnings Call Transcript @themotleyfool #stocks $DT, This Cloud Pioneer Is Ushering in a New Cybersecurity Trend in 2021, Why I Just Purchased Shares of AI Cloud Observability Company Dynatrace, Dynatrace Holdings LLC (DT) Q2 2021 Earnings Call Transcript, DataDog Rival Sumo Logic Files for IPO to Get in on the Rally, Copyright, Trademark and Patent Information. Dynatrace Announces PurePath 4 with OpenTelemetry and Support for the Latest Cloud-Native Architectures. Motley Fool. There is a link between financial literacy and financial resilience, according to Olivia Mitchell of University of Pennsylvania’s Wharton School, Annamaria Lusardi of George Washington University’s School of Business, and Robert Clark of North Carolina State University’s Poole College of Management. It's always been a competitive space. Mahalo, Larry.”Ellison, 76, who has a net worth of about $75 billion, according to data compiled by Bloomberg, owns 98% of Lanai, Hawaii’s sixth largest island that’s mostly made up of Ellison’s luxury hotels and resorts. I’ve moved to the State of Hawaii and I’ll be using the power of Zoom to work from the island of Lanai. And as I just described, our innovation engine continues to deliver highly differentiated product value for our growing enterprise customer base. So that continues to be the strongest. The Food and Drug Administration authorized Pfizer's coronavirus vaccine for emergency use late Friday. Nobody has gotten by with the kind of money printing now for a very extended period without some kind of trouble," he said. This story and many more like it illustrate that as every company becomes a software company and transitions from old stack to new stack, the demand for Dynatrace to enable this transformation continues to grow. Munger called technology "a killer and an opportunity." Overall, we have had a very good line of sight to completion, and we are very pleased with the success of the program and the benefits that have been realized by our customers once on the new platform. The IRS lets each of us save up to $6,000 a year in a tax-sheltered individual retirement account (there are, as always with the IRS, some mind-numbing little complications and caveats). Our non-GAAP operating income for the second quarter was $29.4 million, above the high end of our guidance of $25 million, primarily related to the revenue and gross margin upside during the quarter. During the course of today's call, we'll refer to certain non-GAAP financial measures as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure can be found within our second fiscal quarter 2020 earnings press release in the Investor Relations section of our website at dynatrace.com. The initial land is very consistent with where it's been, in the 90,000 to 100,000 initial land. And that's a key part of driving full TAM expansion in this area for us as we go forward. Let me share an example of one of the many meaningful customer expansions during the quarter. Follow us on Twitter @investornetwork. We are now left to 1,828 customers on the new platform, an increase of 250 from a quarter ago, and more than double from a year ago. And that connective tissue to be that tight is something that every customer looks for as they try to drive their digital business initiatives forward. Good question. The world has really changed," he quipped. Ladies and gentlemen, thank you for standing by, and welcome to the Dynatrace second-quarter 2020 earnings conference call. Second part is just in terms of the renewal rate, and I'll take it, Caroline. Web-scale environments, which were a novelty just a couple of years ago, are becoming commonplace as enterprises shift from static on-premise data centers to dynamic multi-cloud architectures with highly distributed microservices workloads. Not when the first applications go into AWS or Azure, but when the company actually has a strategic initiative to build out a much broader multi-cloud strategy. But there’s a dark side to Dow 30k –and it’s going to take 99% of Americans by surprise. Richard Davis -- Canaccord Genuity -- Analyst. "Frenzy is so great, and the systems of management, the reward systems, are so foolish," he added. You've obviously had AI, but just, a, can you just talk a little bit about module, who you sell it to; and the pricing and interest from customers. Non-GAAP net income was $17.3 million and $0.06 per share. And our next question will come from the line of Matt Hedberg of RBC Capital Markets. Gartner’s 2020 Magic Quadrant for Application Performance Monitoring. Our next question will come from the line of Heather Bellini of Goldman Sachs. And where we're seeing more and more customers hit what we call the microservices wall as we go forward where they have just classic tooling that just can't keep up with the scale or dynamism of those environments. I gave an example just a few minutes ago of one customer, but pretty much anyone who has some kind of an e-commerce or some kind of an important customer-facing application is a great candidate for extended DEM use from Dynatrace. I mean it's healthy versus a lot of competitors out there that land in very small mid-market footprints. The more someone understood about interest rates, inflation, risk diversification and other financial concepts, the less likely they show signs of financial “fragility” at a time of serious money pressures for many people across the country, a new study concludes. I guess as you think about that, just an update on what you're seeing there as people have come back sort of out of DMPs, especially their transition to the cloud. Get access to the preliminary and edited earnings call transcripts of US corporate conference calls. Congrats on the quarter. Classic ARR has now declined to $94 million down $17 million from a quarter ago and now only represents 20% of total company ARR. From a leader in APM, to defining a new category—Software Intelligence. Full story here. DEM is sort of more pervasive at the moment. They are responsible sort of as the general contractor for a lot of the larger projects, and they look for the variety of pieces that they need in order to do a proper migration and then scale out of these enterprise clouds. This is the sixth straight quarter we've exceeded this mark. I got to tell you that the monitoring space has had dozens and dozens of companies in it for decades now. Our attach rate's up considerably over a year ago and the scale-out of the digital experience module continues to get great traction in our customer base. We are not simply upgrading from one product set to a new version. So, the first question is just wanted to kind of get a sense of the traction that you're getting from customers that are buying those three main solutions of the APM infrastructure and logging. Recent Earnings Call Transcripts. We've been successful in moving our Classic customer base to the new Dynatrace platform because virtually every company has new enterprise cloud initiatives. We've been blessed with the exceptional stewardship from Thoma Bravo. We expect our non-GAAP operating income to be in the range of $119 million to $121 million, up from our prior guidance of $112 million to $115 million. And I'd say, we're in line with sort of industry-standard churn rates. Before I conclude, let me say that it's more than just great product and a rapidly growing market that makes a sustainable world-class company. With that, let me turn the call over to Kevin Burns for a review of our financials. See you at the top! And so, could you kind of flesh out how like a Google Analytics and a Dynatrace are complementary not competitive? It at that platform operated by CrossCountry Mortgage, not just the Dynatrace all-in-one platform, believe. A simple question: 'What would APM look like in 2020? last 12 months, 58 % our. Seeing attach rates ticking up saw a nice uptick in new customers, when they move off Classic! 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