$DT

Dynatrace, Inc.

CIK:0001773383|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 554,548	$ 477,349
Cost of revenue:
Amortization of acquired technology	2,135	836
Total cost of revenue	103,453	85,209
Gross profit	451,095	392,140
Operating expenses:
Research and development	135,990	108,172
Sales and marketing	181,631	165,314
General and administrative	61,736	56,304
Amortization of other intangibles	262	12
Total operating expenses	379,619	329,802
Income from operations	71,476	62,338
Interest income, net	8,893	12,295
Other income, net	432	6,757
Income before income taxes	80,801	81,390
Income tax expense	(44,150)	(33,435)
Net income	$ 36,651	$ 47,955
Net income per share:
Basic (in dollars per share)	$ 0.13	$ 0.16
Diluted (in dollars per share)	$ 0.12	$ 0.16
Weighted average shares outstanding:
Basic (in shares)	292,202	300,153
Diluted (in shares)	293,744	304,160
Subscription
Revenue:
Total revenue	$ 530,255	$ 457,507
Cost of revenue:
Cost of revenues	80,260	65,018
Service
Revenue:
Total revenue	24,293	19,842
Cost of revenue:
Cost of revenues	$ 21,058	$ 19,355

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 36,651	$ 47,955
Adjustments to reconcile net income to cash provided by operations:
Depreciation	4,740	5,095
Amortization	2,914	1,366
Share-based compensation	73,576	71,895
Deferred income taxes	2,604	3,750
Other	(281)	(7,051)
Net change in operating assets and liabilities:
Accounts receivable	335,226	343,732
Deferred contract costs	(3,505)	2,727
Prepaid expenses and other assets	135	(8,840)
Accounts payable and accrued expenses	(9,024)	(73,110)
Operating leases, net	(49)	605
Deferred revenue	(136,747)	(118,432)
Net cash provided by operating activities	306,240	269,692
Cash flows from investing activities:
Purchase of property and equipment	(3,151)	(7,482)
Capitalized software additions	0	(194)
Acquisition of a business, net of cash acquired	(99,481)	0
Purchases of marketable securities	(3,713)	(28,824)
Proceeds from sales and maturities of marketable securities	33,436	28,052
Net cash used in investing activities	(72,909)	(8,448)
Cash flows from financing activities:
Proceeds from employee stock purchase plan	12,636	11,871
Proceeds from exercise of stock options	1,591	2,415
Repurchases of common stock	(275,478)	(45,031)
Taxes paid related to net share settlement of equity awards	(7,627)	(10,347)
Other	(1,104)	(2,762)
Net cash used in financing activities	(269,982)	(43,854)
Effect of exchange rates on cash and cash equivalents	(2,789)	12,952
Net (decrease) increase in cash and cash equivalents	(39,440)	230,342
Cash and cash equivalents, beginning of period	1,097,220	1,017,039
Cash and cash equivalents, end of period	1,057,780	1,247,381
Supplemental cash flow data:
Cash paid for interest	180	181
Cash paid for tax, net	$ 14,230	$ 30,548

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Mar. 31, 2026
Current assets:
Cash and cash equivalents	$ 1,057,780	$ 1,097,220
Short-term marketable securities	51,084	74,881
Accounts receivable, net	379,975	710,200
Deferred contract costs, current	130,287	127,495
Prepaid expenses and other current assets	104,575	113,651
Total current assets	1,723,701	2,123,447
Long-term marketable securities	47,079	51,908
Property and equipment, net	71,631	72,993
Operating lease right-of-use assets, net	134,360	139,285
Goodwill	1,413,246	1,350,256
Intangible assets, net	65,264	22,850
Deferred tax assets, net	498,149	508,742
Deferred contract costs, non-current	113,692	113,111
Other assets	42,372	33,133
Total assets	4,109,494	4,415,725
Current liabilities:
Accounts payable	7,919	2,728
Accrued expenses, current	287,489	302,260
Deferred revenue, current	1,108,856	1,241,488
Operating lease liabilities, current	23,057	22,588
Total current liabilities	1,427,321	1,569,064
Deferred revenue, non-current	49,791	53,387
Accrued expenses, non-current	43,331	38,205
Operating lease liabilities, non-current	136,216	141,736
Deferred tax liabilities	2,082	1,943
Total liabilities	1,658,741	1,804,335
Commitments and contingencies (Note 10)
Shareholders' equity:
Common shares, $0.001 par value, 600,000,000 shares authorized, 290,346,577 and 294,652,951 shares issued and outstanding at June 30, 2026 and March 31, 2026, respectively	290	295
Additional paid-in capital	2,001,910	2,199,494
Retained earnings	484,247	447,596
Accumulated other comprehensive loss	(35,694)	(35,995)
Total shareholders' equity	2,450,753	2,611,390
Total liabilities and shareholders' equity	$ 4,109,494	$ 4,415,725