Dynatrace Inc. (DT) Quarterly 10-Q Report

The report was filed on November 7, 2024

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Dynatrace Inc. (DT+1.82%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.

The filing includes financial statements for the quarter, showing an increase in total revenue to $418,129,000 from $351,700,000 in the same quarter the previous year. Subscription revenue grew by 20% to $399,810,000, driven by new customer acquisitions and expanded usage by existing customers.

Cost of subscription rose to $55,796,000, representing 14% of revenue, compared to 13% in the same quarter of the previous year. This increase is attributed to higher cloud-based hosting costs and personnel expenses.

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The company reported a gross profit of $340,345,000 for the quarter, compared to $287,333,000 in the previous year, with the gross margin slightly declining from 82% to 81%.

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Research and development expenses increased to $95,366,000 from $74,084,000, primarily due to higher personnel costs and share-based compensation.

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Sales and marketing expenses rose to $144,224,000 from $127,605,000, driven by increased personnel costs and marketing program expenses.

Net income for the quarter was $44,008,000, up from $35,809,000 in the previous year. Basic and diluted net income per share were both $0.15.

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Cash provided by operating activities was $23,650,000, while cash used in investing and financing activities was $46,620,000 and $84,567,000, respectively.

Dynatrace had cash and cash equivalents of $907,177,000 as of September 30, 2024. The company maintains a $400 million credit facility, with $399.2 million available as of the end of the quarter.

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The filing also details various business risks, including potential impacts from macroeconomic conditions, competition, and regulatory changes.

Dynatrace continues to focus on expanding its customer base and strengthening relationships with existing customers, while investing in research and development to enhance its platform capabilities.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Dynatrace Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.