Dynatrace Holdings IPO: What You Need To Know

After some successful tech IPOs in the first half of the year, an enterprise software intelligence company is testing the IPO waters this week.

The IPO Terms

Massachusetts-based Dynatrace Holdings LLC is planning a 35.61 million-share IPO, with 34 million shares being offered by the company and the remaining 1.61 million shares offered by selling shareholders, according to the amended S-1/A filing.

The company expects to price the offering between $13 and $15, an upward revision from the previously estimated price range of $11-$13.

At the midpoint of the estimated price range, gross proceeds from the offering is likely to be $499 million.

The shares of Dynatrace have been approved for listing on the NYSE under the ticker symbol DT.

Goldman Sachs, JPMorgan and Citigroup are the lead underwriters for the offering.

The Company

Dynatrace offers a software intelligence platform purpose-built for enterprise cloud, which uses artificial intelligence and advanced automation to provide not just data but answers about performance of applications, the underlying hybrid cloud infrastructure and the experience of customers' end users.

As of March 31, 2019, Dynatrace had more than 2,300 customers in over 70 countries in diverse industries such as banking, insurance, retail, manufacturing, travel and software.

The Finances

Dynatrace reported revenues of $430.97 million for the fiscal year ended March 31, 2019 compared to $398.05 million in 2018. Roughly 81% of the total revenues for 2019 were from subscriptions and the rest from licensing and services.

The company, however, reversed to a loss of $116.19 million in 2019 from a profit of $9.2 million in 2018, as operating expenses ballooned.

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