Dynatrace Inc (NYSE:DT) Q1 2020 Earnings Conference Call - Final Transcript

Sep 04, 2019 • 05:00 pm ET


Dynatrace Inc (NYSE:DT) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Sheryl, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dynatrace Inc. Fiscal First Quarter 2020 Earnings Conference Call. [Operator Instructions] Thank you. Michael Bowen, Investor Relations, you may begin your conference.

Michael Bowen

Thank you, operator. Good afternoon, and thank you for joining us today to review Dynatrace's first quarter fiscal 2020 financial results. With me on the call today are John Van Siclen, Chief Executive Officer; and Kevin Burns, Chief Financial Officer. After prepared remarks, we will open up the call for a question-and-answer session.

Before we start, I'd like to draw your attention to the safe harbor statement included in today's press release. During this call, we will make statements related to our business that maybe considered forward-looking within the meaning of Section 27A of Securities Act of 1933 as amended, and Section 21E of Securities Exchange Act of 1934 as amended.

All statements other than statements of historical fact are forward-looking statements, including statements regarding management's expectations of future, financial and operational performance and operational expenditures, expected growth, and business outlook, including our financial guidance for the second fiscal quarter and full-year 2020.

Forward-looking statements reflect our views only as of today and except as required by law, we undertake no obligation to update or revise these forward-looking statements. Please refer to cautionary language in today's press release and to our final IPO prospectus, which is filed with the SEC on July 31st, 2019 and our other SEC filings for a discussion of the risks and uncertainties that could cause actual results to differ materially from expectations.

During the course of today's call, we will refer to certain non-GAAP financial measures as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and comparable GAAP financial measure, can be found with our first fiscal quarter 2020 earnings press release in the Investor Relations section of our website at dynatrace.com.

With that, I'd like to turn the call over to our Chief Executive Officer, John Van Siclen. John?

John Van Siclen

Thanks, Michael. And I'd like to start by thanking all of you for joining us today on our first conference call as a public company. We're excited to have completed our successful IPO on August 1st. This represented an important milestone for Dynatrace and one that further enhances our brand awareness and ability to execute the Company's long-term growth strategy.

We are also very pleased with the first quarter financial results, where we achieved 43% ARR growth to $438 million, and strong total revenue growth, driven by subscription and services revenue, which increased 36% year-over-year. We continue to focus on building a balanced business with strong growth and cash flow for greater durability over time.

As this is our first quarter as a public company, I wanted to provide a brief overview of Dynatrace's transformation, our value