We did see that four-week kind of shift to work-on-home and people leaning into different aspects of our product line for employee productivity. Before I start, I would like to express my sympathy to all those who have been impacted by this health crisis. a month ago seekingalpha.com DT. Ladies and gentlemen, thank you for standing by, and welcome to the Dynatrace fiscal fourth-quarter 2020 earnings conference call. Thank you so much, Kevin and John. RT @MagentaMusik360: Bei Konzerten ist eine perfekt abgestimmte Lichtshow mindestens genau so essentiell, wie die Musik. This is Matt on for Sterling. Example. In the midst of maybe the greatest disruption to the oil business in history, this company determined it was essential to revamp and modernize its commodity to trading applications and the technology stack it was running on, a shift to cloud for agility and efficiency for a set of revenue-driving applications and services. Thank you so much. Earnings Release. First, we expect to modestly grow headcount in Q1 as we initially moderated the timing of investments as we evaluated the impact of the health crisis on our business. Earnings Release. Hopefully, that makes sense to you. We're actually a much higher volume transaction company where we really focus on land and expand, where we land in $100,000 and then we expand gradually with our customers as they expand their footprint, as they add more applications and now, more than ever, as they add additional modules. … Good morning and thank you for joining us today to review Dynatrace's fourth-quarter and fiscal-year 2020 financial results. We package differently than our competition. ET. Hi. Yes. Was that a tick-down at all from what you saw in the prior quarter? Even if you're able to pull some traces off, you don't have a distributed tracing capability that really gives you value in that application layer, which is why we talk about entering many of our opportunities through sort of the APM lens and landing and then expanding from there. Returns as of 12/15/2020. Oct 28, 2020 8:00 am EST. Our renewal rates are very healthy. To put a little bit more color in terms of where it's going in the future, based on what we view as prudent guidance on the top line and a combination of what we think will be helping new logos, mathematically, obviously, that net expansion rate needs to drop down from that 120% bar down to 115%. Sign in or Sign up. Well, first of all, you need to understand that our sales organization, for the most part, works remotely anyway. And throughout the year, our ARR faced currency headwinds in the range of 200 to 300 basis points per quarter. Based on the current guidance, we expect services revenue to be down on a year-over-year basis in the 10% range given that we have moved almost all of our customers to the Dynatrace platform where the product is automated and needs let services combined with our SI partners doing more services work. Like you mentioned, you were kind of more comprehensive there, and you can do a lot more stuff. David Hynes with Canaccord, your line is open. The reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.08. Great. I was wondering if you could mention maybe how the size of the new land may be being impacted. Our non-GAAP operating income for the fourth quarter was $36 million, above the high end of our guidance of $34.5 million primarily due to the combination of revenue and associated gross margin upside. As an aside, we have closed new business with customers in some of these verticals so far in the first quarter, which is further support for our expectation of a modest negative impact. During its earnings call, the executive added its T-Mobile US operation had more customers than AT&T following the unit’s big-money merger with Sprint, and was now pursuing the medium-term target to “oust Verizon from the top spot”. Barclays 2020 Global Automotive Conference. Your month of April was actually stronger than the year earlier. Or are you seeing any pressure or changes in the pricing environment, the competitive environment? So we include multiple things. I can't do this with a bunch of tools, I need something more comprehensive. XBRL. Good morning, everyone, and thank you for joining us on our Q4 and year-end fiscal '20 earnings call. I have lots of blind spots, I need to fix this. [Operator instructions] Kash Rangan with Bank of America, your line is open. Share. Act 0.11 Est 0.077 Q4 2020 Dynatrace Inc Earnings Call 05/12/2020 08:00 AM (EDT) DT. As our conversion program winds down, the volume of new customer adds to the Dynatrace platform is likely to decline on a quarterly basis, while obviously, the ratio of new logos will increase. As John said, ARR grew 42% year over year to $572.8 million, an increase of $169 million compared to the year-ago period. 06:22PM : Why Dynatrace Stock Dropped Today. These figures are adjusted for non-recurring items. Got you. Q2 2016 AT&T Inc. Earnings Conference Call. Please be advised that today's conference is being … Add to calendar. For the full year, ARR guidance is $680 million to $692 million, 19% to 21% growth. As a result, despite some headwinds associated with the current environment, we are comfortable establishing full-year guidance that calls for a combination of strong growth in subscription revenue, coupled with meaningful profitability and cash flow. Dow Jones Rises As Nasdaq Hits All-Time High; IBD 50 Stock Breaks Out. We expect the greatest COVID headwinds on bookings and renewals in Q1 due to the global economic shutdown, with the headwinds gradually declining over the course of the fiscal year. 12/08 15:25. Goldman Sachs 2020 … So we haven't stopped the hiring of sales folks. I'm wondering, though, can you talk about that trend within new customers? These world-class margins are a result of a highly reliable platform and autonomous SaaS operation. Latest Annual Filing. Total revenue for the fourth quarter was $150.6 million, $2.6 million above the high end of our guidance, an increase of 30% on a year-over-year basis and 31% in constant currency. But anecdotally, yes. We do. Please go ahead. Hi. Heather Bellini with Goldman Sachs, your line is open. PDF HTML. Yahoo. Sales organization, it's in action. The Dynatrace platform continues to increase as a percent of total ARR and was approximately $528 million at the end of March or 92% of our total ARR. Dynatrace had a return on equity of 10.69% and a net margin of 12.75%. As we said before, nearly all these customers use Dynatrace for observing and optimizing cloud workloads. ZIP XLS HTML. For Fiscal Year Ending Mar 31, 2020. There are certainly a lot of positives that we've seen throughout the course of fiscal '20 and leading indicators into the first quarter of '21. The acceleration in total revenue growth is being driven by the strong growth in subscription and services revenue, which was $148.3 million in the fourth quarter, an increase of 37% year over year and 38% in constant currency. Regarding our business transition to a more predictable subscription model, in Q4, 98% of revenue were subscription or services. Dec 04, 2020. We are extremely pleased with the success of our conversion program. Over the past year, we have gone from approximately 15% of our customers buying three or more modules from us to over 25%, and that's on a rapidly growing customer base. However, based on the current revenue guidance, we anticipate we would experience a modest decline in our net expansion rates throughout fiscal '21, resulting in a net expansion rate above 115% for the year. Other companies have to sell three or four products to do what we do in one. All earnings call transcripts on Dynatrace, Inc. (DT) stock. Shares are up 2.0% since reporting last quarter. Forward-looking statements reflect our views only as of today, and except as required by law, we undertake no obligation to update or revise these forward-looking statements. So when you look out over 12 to 18 months, that should be a much smaller number than where we just ended? ET Prepared … Heat Map. You said April is off to a good start, but just love to understand what you're seeing in the top of the funnel in terms of what's driving some of those deals coming in today and sort of how do you think that plays out going forward, say, for the next two, three quarters, which is COVID-time-driven and post-COVID. Nov 2020. We believe, and our customers share this sentiment, that this places Dynatrace near the top of the strategic IT priority list. It's now maturing as we expand coverage for AWS, Azure and Google Cloud Platform services. Just to understand like how that momentum is playing out there. In summary, we are very pleased with our fourth-quarter and full-year performance, and with a market-leading position, we remain confident Dynatrace is well-positioned for the long term. Dynatrace had a net margin of 12.75% and a return on equity of 10.69%. Appreciate the time this morning. Yahoo. The company reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.10 by $0.08. 04:21PM : Dow Jones Falls 940 Points As Coronavirus Hospitalizations Climb. So whether it's demonstrations, proof of concepts, helping customers sort of manage environments, making sure that they adopt the latest techniques, all done remotely. 12/11 11:40. Question on the infrastructure monitoring. So those are the two primary that will go together, depending on the point of view of the customer, but it's pretty quick to add a third and keep going from there. Dynatrace's rapid automatic rollout and unified AI-ops approach to identifying service-impacting issues at time of degradation with precise actionable answers for rapid remediation made the Dynatrace expansion decision straightforward. Classic license revenue declined by $27.7 million to $12.7 million in fiscal '20. Turning to the balance sheet. You've resumed it. Our Dynatrace ARR per customer continues to trend up and is over $220,000. You will find all information and documents here. The operating segments being affected by this transition are Germany, Europe and GHS. [Operator instructions] Thank you. And that environment continues to be more prevalent and accelerate. The Earnings Whisper Score gives the statistical odds for the stock ahead of earnings. We continue to operate the business with a healthy combination of growth and profitability, a trend we believe we can continue to deliver on for quite some time, given the increasing importance of cloud software and the strength of the Dynatrace platform and the expanding addressable market we operate in. Hey, John, just in terms of the expansion opportunity, can you just remind us where the average customer is in terms of percent of apps or stack that's being monitored and then maybe where some of your best customers are? Is now virtually complete ) home Dynatrace, Inc. 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