Dynatrace, Inc. (DT) Q4 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 17, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello and welcome to Dynatrace Fourth Quarter Fiscal 2023 Earnings Call and Webcast. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Noelle Faris, Vice President of Investor Relations. Please go ahead, Noelle.

Noelle Faris

Good morning and thank you for joining Dynatrace’s fourth quarter and fiscal 2023 earnings conference call. Joining me today are Rick McConnell, Chief Executive Officer and Jim Benson, Chief Financial Officer.

Before we get started, please note that today’s comments include forward-looking statements such as statements regarding revenue and earnings guidance and economic conditions. Actual results may differ materially from our expectations due to a number of risks and uncertainties discussed in Dynatrace’s SEC filings, including our most recent quarterly report on Form 10-Q and our upcoming annual report on Form 10-K that we plan to file later this month. The forward-looking statements included in this call represent the company's views on May 17, 2023. We assume no obligation to update these statements as a result of new information, future events or circumstances.

Unless otherwise noted, the growth rates we discussed today are non-GAAP reflecting constant currency growth rates and per share amounts are on a diluted basis. We will also discuss other non-GAAP financial measures on today's call. We provide reconciliations between non-GAAP and GAAP measures in today's earnings press release and in the financial presentation slides posted in the Events section of our website.

And with that, let me turn the call over to our Chief Executive Officer, Rick McConnell. Rick?

Rick McConnell

Thanks, Noelle and good morning, everyone. Thank you for joining us for today's call. Dynatrace delivered an exceptional finished FY 2023 with fourth quarter results that exceeded expectations across the board. For the full-year, adjusted ARR growth, constant currency subscription revenue growth, and free cash flow margin were all 29%.

I'd like to thank the nearly 4,200 Dynatracers globally for their incredible commitment to excellence and tremendous execution this past year. These results continue to demonstrate our ability to run a balanced business that has been delivering high growth coupled with strong bottom line performance. They are a testament to the strength of our market, the significant customer value of our unified observability and security platform, our people and partners and the ongoing durability of our business model. Jim will share more details about our Q4 performance and fiscal 2024 guidance in a moment.