Dynatrace, Inc. (DT)

Latest 10-Q (filed 2026-08-05)

Income Statement

Consolidated Statement of Income

Dynatrace, Inc. (DT)

Three Months Ended (In thousands, except shares and per share data)

Jun 30, 2026 (Q1) Jun 30, 2025 (Q1)
        Total revenue $554,548 $477,349
Subscription $530,255 $457,507
Service $24,293 $19,842
          Cost of revenues $101,318 $84,373
Subscription $80,260 $65,018
Service $21,058 $19,355
          Amortization of acquired technology $2,135 $836
        Total cost of revenue $103,453 $85,209
        Gross profit $451,095 $392,140
          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
        Basic (in dollars per share) 0.13 0.16
        Diluted (in dollars per share) 0.12 0.16
        Basic (in shares) 292,202 300,153
        Diluted (in shares) 293,744 304,160

Balance Sheet

Consolidated Balance Sheets

Dynatrace, Inc. (DT)

As of June 30, 2026 and March 31, 2026 (In thousands, except shares and per share data)

Jun 30, 2026 Mar 31, 2026
        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
        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)
      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

Cash Flow

Consolidated Statement of Cash Flows

Dynatrace, Inc. (DT)

Three Months Ended (In thousands, except shares and per share data)

Jun 30, 2026 (Q1) Jun 30, 2025 (Q1)
      Net income $36,651 $47,955
      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)
        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
      Purchase of property and equipment $(3,151) $(7,482)
      Capitalized software additions $(194)
      Acquisition of a business, net of cash acquired $(99,481)
      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)
      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, end of period
  Cash and cash equivalents, end of period
    Cash paid for interest $180 $181
    Cash paid for tax, net $14,230 $30,548