Dynatrace Shares Drop As It Cuts FY23 Revenue Guidance; Clocks 30% Revenue Growth In Q2; Names New CFO

Dynatrace, Inc DT reported second-quarter FY23 revenue growth of 30% year-on-year to $279.3 million (CC), beating the consensus of $272.4 million.
Total ARR increased 30% Y/Y to $1.06 billion (CC). Revenues from Subscription rose 29% Y/Y to $261.3 million (CC).
Margins: The non-GAAP operating margin contracted 100 basis points to 26%.
Non-GAAP EPS of $0.22 beat the consensus of $0.18.
Dynatrace generated $25.1 million in free cash flow during the quarter. It held $563.4 million in cash and equivalents.
Outlook: Dynatrace sees Q3 FY23 revenue of $283 million- $286 million versus the consensus of $285.4 million.
Dynatrace sees non-GAAP EPS of $0.21 - $0.22, above the consensus of $0.19.
For FY23, Dynatrace expects total revenue of $1.119 billion - $1.126 billion, down from the prior view of $1.125 billion - $1.136 billion and below the consensus of $1.13 billion.
Dynatrace sees a non-GAAP EPS of $0.81 - $0.83, up from the previous $0.73 - $0.76 and above the consensus of $0.75.
CFO Transition: Dynatrace appointed Jim Benson as Chief Financial Officer, effective November 15.
Benson will succeed Kevin Burns, who announced in May 2022 his intention to transition out of Dynatrace by the end of the calendar year.
Benson most recently served as executive vice president and CFO at Akamai Technologies, Inc AKAM from 2012 until 2019. Since then, Benson has held several board seats and is currently a Board member at Grange Insurance, Temenos, and Xplor.
Price Action: DT shares traded lower by 6.35% at $32.00 on the last check Wednesday.
Photo Via Wikimedia Commons

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