Benzinga | May 12, 2021 09:20AM EDT

Dynatrace Beats On Q4 Earnings, Issues Robust Q1 Guidance

* Dynatrace Inc (NYSE: DT) reported fourth-quarter FY21 revenue growth of 31% year-on-year to $197 million, beating the analyst consensus of $191.81 million.

* Subscription revenue rose 35% Y/Y to $183 million, License revenue declined 95% Y/Y to $0.109 million, while Service revenue rose 4.7% Y/Y to $13.6 million.

* Total ARR rose 35% Y/Y to $774 million.

* Non-GAAP operating income rose 36.8% Y/Y to $49.5 million, and the margin expanded 100 basis points to 25%.

* Non-GAAP net income rose 54.3% Y/Y to $43.4 million with an adjusted EPS of $0.15, beating the analyst consensus of $0.14.

* The company held $325 million in cash and equivalents and generated $220.4 million in operating cash flow.

* Guidance: Dynatrace sees Q1 FY22 revenue guidance of $202 million - $204 million, above the analyst consensus of $197.04 million. It sees an adjusted EPS of $0.14 - $0.15, compared to the analyst consensus of $0.14.

* For FY22, Dynatrace sees revenue of $885 million - $900 million and a Non-GAAP EPS guidance between $0.59 - $0.62, versus $0.63 consensus.

* Dynatrace's strong Q4 performance capped off an excellent year exceeding guidance across all its key operating metrics led by ARR growth of 35% Y/Y, CEO John Van Siclen said.

* Price action: DT shares are down by 4.65% at $43.27 on Tuesday.