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Dynatrace Outlines Mixed Fiscal 2022 Guidance Even as Fourth-Quarter Sales, Earnings Top Expectations

05/12/2021 05:40

09:33 AM EDT, 05/12/2021 (MT Newswires) -- Dynatrace (DT) reported fiscal fourth-quarter results that were ahead of analysts' expectations on Wednesday, while the software company offered mixed guidance for the new year as it eyes more gains in subscription revenue.

Revenue rose 31% to $196.5 million in the three months through March 31, ahead of the consensus on Capital IQ for $191.7 million. Non-GAAP net income increased to $0.15 a share from $0.10 previously, while analysts were looking for $0.14 a share.

Subscription revenue rose 35% to $183 million, while annual recurring revenue reached $774 million in the three months, also up 35%. Service revenue rose to $13.6 million from $12.9 million, while operating expenses in the final quarter of fiscal 2021 rose to $140.3 million from $111.4 million.

"Dynatrace's strong fourth quarter performance capped off an excellent year exceeding guidance across all our key operating metrics," said John Van Siclen, chief executive of the Waltham, Massachusetts-based company. "Looking forward to fiscal 2022, we will continue to invest in growth to take advantage of the large and growing market opportunity we have in front of us."

In the new fiscal year, Dynatrace is expecting revenue between $885 million and $900 million, stronger than the current view on Capital IQ for $875.1 million. Subscription revenue is expected between $834 million and $848 million, growth of as much as 29% year-on-year on a reported basis.

Income in fiscal 2022 is pegged between $0.59 and $0.62 a share on a non-GAAP basis, although that's below the Street view for $0.63 and lower than the fiscal 2021 result of $0.63. Dynatrace's shares were down 5.1% in early Wednesday trading.

Fiscal first-quarter income is seen between $0.14 and $0.15 a share with revenue of $202 million to $204 million, against analysts' views for $0.14 in normalized EPS and revenue of $197.3 million.

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