Dynatrace, Inc. (NYSE:DT) Q2 2024 Earnings Conference Call November 2, 2023 8:00 AM ET
Company Participants
Noelle Faris - VP of IR
Rick McConnell - CEO
Jim Benson - CFO
Conference Call Participants
Matt Hedberg - RBC Capital Markets
Pinjalim Bora - JPMorgan
Will Power - Baird
Raimo Lenschow - Barclays
Kash Rangan - Goldman Sachs
Keith Bachman - BMO Capital Markets
Andrew Nowinski - Wells Fargo
Mike Cikos - Needham & Company
Operator
Greetings, and welcome to the Dynatrace Fiscal Second Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note, this conference is being recorded.
I’ll now turn the conference over to Noelle Faris, Vice President of Investor Relations. Ms. Faris, you may begin.
Noelle Faris
Good morning and thank you for joining Dynatrace’s second quarter and fiscal 2024 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 that we filed earlier today.
The forward-looking statements included in this call represent the company's views on November 2, 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 discuss today are non-GAAP reflecting constant currency growth and per share amounts are on a diluted basis. We will also discuss other non-GAAP financial measures on today's call.
To see reconciliations between non-GAAP and GAAP measures, please refer to today's earnings press release and supplemental presentation which are both posted in the Financial Results section of our IR website
And with that, let me turn the call over to our Chief Executive Officer, Rick McConnell.
Rick McConnell
Thanks, Noelle, and good morning, everyone. Thank you for joining us for today's call. We had an outstanding quarter, exceeding the high end of our guidance across all metrics. ARR grew 24% year-over-year in constant currency.
Subscription revenue increased 26% year-over-year in constant currency. Non-GAAP operating income increased to $106 million, or 30% of revenue, and we delivered a 25% free cash flow margin on a trailing 12-month basis, including a four-point impact for cash taxes.