Dynatrace Reports Third Quarter of Fiscal Year 2020 Financial Results

• Subscription and Services revenue of $139.4 million, a year-over-year increase of 36%

• Annualized recurring revenue “ARR” of $534.5 million, a year-over-year increase of 44%

• GAAP EPS of $0.01 and non-GAAP EPS of $0.10

WALTHAM, Mass–(BUSINESS WIRE)–Dynatrace (NYSE: DT), the market-leading software intelligence provider, purpose-built for the enterprise cloud, today released financial results for the third quarter of its fiscal 2020 ended December 31, 2019.

“The third quarter marked another strong performance for Dynatrace, highlighted by record subscription and services revenue, ongoing robust demand for our all-in-one software intelligence platform, and continued strong momentum. We are pleased with our performance across our key operating metrics, which was driven by the combination of new logos and expansion with existing customers,” stated John Van Siclen, Chief Executive Officer. “As companies continue to digitally transform and move to enterprise clouds, Dynatrace remains well positioned to grow market share globally. Consequently, while we continue to execute efficiently and focus on profitability, we remain committed to maintaining our leadership position through ongoing innovation and further expansion of sales and marketing.”

Third Quarter Fiscal 2020 and Other Recent Business Highlights:

Financial Highlights:

  • Total Revenue of $143.3 million, an increase of 25% compared to $114.7 million in Q3 2019
  • Total ARR of $534.5 million, an increase of 44% compared to $372.3 million at the end of Q3 2019
  • Subscription and Services revenue of $139.4 million, an increase of 36% compared to $102.6 million in Q3 2019, and representing 97% of total revenue
  • GAAP Operating Income of $7.6 million and Non-GAAP Operating Income of $37.5 million
  • GAAP EPS of $0.01 and non-GAAP EPS of $0.10

Dynatrace® Platform Highlights:

  • Ended the quarter with 2,208 Dynatrace customers, a sequential increase of 380 from the end of Q2 2020
  • Dynatrace Net Expansion rate at or above 120% for the 7th consecutive quarter
  • Dynatrace ARR represents 87% of total ARR, increasing from 80% of total ARR at the end of Q2 2020

Business Highlights:

  • Extended AI-powered software intelligence to AWS hybrid clouds through our unique SaaS architecture allowing Dynatrace to support AWS hybrid clouds with greater ease and data security than alternative approaches.
  • Paved the way to the autonomous cloud by releasing Keptn, an open source control plane to simplify IT’s journey to NoOps for cloud native environments.
  • Announced the contributions of transaction tracing knowhow and manpower to the OpenTelemetry project to shape the future of open standards-based observability and extend the reach of the Dynatrace Software Intelligence Platform.

Third Quarter 2020 Financial Highlights

(Unaudited – in thousands, except per share amounts)

 

Three Months Ended December 31,

 

2019

 

2018

Annualized recurring revenue

$

534,490

 

 

$

372,317

 

Year-over-Year Increase

44

%

 

 

 

 

 

 

Revenues:

 

 

 

Total revenue

$

143,298

 

 

$

114,690

 

Year-over-Year Increase

25

%

 

 

 

 

 

 

Subscription and services revenue

$

139,403

 

 

$

102,626

 

Year-over-Year Increase

36

%

 

 

 

 

 

 

Non-GAAP operating income (*)

$

37,514

 

 

$

23,713

 

Non-GAAP operating margin (*)

26

%

 

21

%

 

 

 

 

Non-GAAP net income (*)

$

26,695

 

 

$

3,582

 

 

 

 

 

Non-GAAP net income per share

$

0.10

 

 

$

0.02

 

 

 

 

 

Non-GAAP shares outstanding – diluted

280,156

 

 

237,468

 

 

 

 

 

Unlevered Free Cash Flow (*)

$

13,287

 

 

$

26,033

 

* Use of Non-GAAP Financial Measures

In our earnings press releases, conference calls, slide presentations, and webcasts, we may use or discuss 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 the comparable GAAP financial measure, are included in this press release after the consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investors section of our website at https://ir.dynatrace.com.

Financial Outlook

Based on information available, as of January 29, 2020, Dynatrace is issuing guidance for the fourth quarter and full year fiscal 2020 as follows:

Fourth Quarter of Fiscal Year 2020:

  • Total revenue is expected to be in the range of $147.0 million to $148.0 million
  • Non-GAAP operating income is expected to be in the range of $33.5 million to $34.5 million
  • Non-GAAP net income is expected to be in the range of $21.5 million to $22.5 million
  • Non-GAAP net income per diluted share is expected to be $0.08, based on approximately 284 million diluted weighted-average shares

Full Year Fiscal 2020:

  • Total revenue is expected to be in the range of $542.2 million to $543.2 million
  • Total ARR is expected to be in the range of $563 million to $566 million
  • Non-GAAP operating income is expected to be in the range of $127.5 million to $128.5 million
  • Non-GAAP net income is expected to be in the range of $74.8 million to $75.8 million
  • Non-GAAP net income per diluted share is expected to be $0.28, based on approximately 272 million diluted weighted-average shares

Reconciliation of non-GAAP operating income, non-GAAP net income and non-GAAP net income per share guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs, as well as unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

These statements are forward-looking and actual results may differ materially. Refer to the section under the heading Forward-Looking Statements below for information on the factors that could cause our actual results to differ materially.

Conference Call and Webcast Information

Dynatrace will host a conference call today, January 29, 2020, to discuss its results and business outlook at 8:00 a.m. Eastern Time. The call will be accessible by telephone at 866-211-4694 (domestic) or 647-689-6731 (international). The call will also be available live via webcast on the Company’s website at https://ir.dynatrace.com. A telephone replay of the conference call will be available at 800-585-8367 or 416-621-4642 (access code 6059566) until February 12, 2020. A webcast replay will be available at https://ir.dynatrace.com.

The company has used, and intends to continue to use, the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.

Non-GAAP Financial Measures & Key Metrics

In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures.

Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Dynatrace considers these non-GAAP financial measures to be important because they provide useful indicators of its performance and liquidity measures. These are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In addition, investors often use similar measures to evaluate the performance of a company. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company’s operating performance. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. 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 the comparable GAAP financial measure, are included in this press release after the consolidated financial statements.

Adjusted EBITDA is defined as Net Income (loss) adjusted by removing the impact of our capital structure (net interest income or expense from our outstanding debt), asset base (depreciation and amortization), tax consequences, restructuring and other gains and losses, transaction and sponsor related costs, gains and losses on foreign currency and stock-based compensation.

Annual Recurring Revenue “ARR” is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of Total ARR any revenues derived from month-to-month agreements and/or product usage overage billings.

Dynatrace Net Expansion Rate is defined as the Dynatrace® ARR at the end of a reporting period for the cohort of Dynatrace® accounts as of one year prior to the date of calculation, divided by the Dynatrace® ARR one year prior to the date of calculation for that same cohort. This calculation excludes the benefit of Dynatrace® ARR resulting from the conversion of Classic products to the Dynatrace® platform, as well as any upsell generated at the time of conversion.

Dynatrace customers are defined as accounts, as identified by a unique account identifier, that generate at least $10,000 of Dynatrace® ARR as of the reporting date. In infrequent cases, a single large organization may comprise multiple customer accounts when there are distinct divisions, departments or subsidiaries that operate and make purchasing decisions independently from the parent organization. In cases where multiple customer accounts exist under a single organization, each customer account is counted separately based on a mutually exclusive accounting of ARR.

Adjusted EBITDA/Net Debt Leverage Ratio is defined as our Net Debt divided by our trailing twelve month Adjusted EBITDA. Net Debt is defined as total principal less cash and cash equivalents.

Unlevered Free Cash Flow is defined as net cash provided by (used in) operating activities and adjusted to exclude cash paid for interest (net of tax), non-recurring restructuring and acquisition related costs, along with costs associated with one-time offerings and filings, less cash used in investing activities for acquisition of property and equipment. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.

About Dynatrace

Dynatrace provides software intelligence to simplify enterprise cloud complexity and accelerate digital transformation. With AI and complete automation, our all-in-one platform provides answers, not just data, about the performance of applications, the underlying infrastructure and the experience of all users. That’s why many of the world’s largest enterprises trust Dynatrace to modernize and automate enterprise cloud operations, release better software faster, and deliver unrivaled digital experiences. Curious to see how you can simplify your enterprise cloud? Let us show you. Visit our trial page for a free 15-day Dynatrace trial. To learn more about how Dynatrace can help your business, visit https://www.dynatrace.com, visit our blog and follow us on Twitter @dynatrace.

Cautionary Language Concerning Forward-Looking Statements

This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, 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 fourth fiscal quarter and full year 2020, and statements regarding the size of our market and our positioning for capturing a larger share of our market. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our ability to maintain our subscription revenue growth rates in future periods, our ability to service our substantial level of indebtedness, market adoption of software intelligence solutions for application performance monitoring, digital experience monitoring and infrastructure monitoring, continued spending on and demand for software intelligence solutions, our ability to successfully convert and upsell our customers as they convert from our Classic products to the Dynatrace® platform, our ability to maintain and acquire new customers, our ability to differentiate our platform from competing products and technologies; our ability to successfully recruit and retain highly-qualified personnel; the price volatility of our common stock, and other risks set forth under the caption “Risk Factors” in our Form 10-Q filed on November 4, 2019 and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

DYNATRACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited – In thousands, except per share amounts)

 

Three Months Ended

December 31,

 

Nine Months Ended

December 31,

 

2019

 

2018

 

2019

 

2018

Revenue:

 

 

 

 

 

 

 

Subscription

$

128,518

 

 

$

91,661

 

 

$

352,451

 

 

$

251,974

 

License

3,895

 

 

12,064

 

 

10,424

 

 

32,805

 

Service

10,885

 

 

10,965

 

 

32,351

 

 

30,019

 

Total revenue

143,298

 

 

114,690

 

 

395,226

 

 

314,798

 

Cost of revenue:

 

 

 

 

 

 

 

Cost of subscription

16,297

 

 

13,534

 

 

55,930

 

 

40,922

 

Cost of service

8,584

 

 

7,731

 

 

29,240

 

 

22,148

 

Amortization of acquired technology

3,824

 

 

4,558

 

 

12,624

 

 

13,780

 

Total cost of revenue

28,705

 

 

25,823

 

 

97,794

 

 

76,850

 

Gross profit

114,593

 

 

88,867

 

 

297,432

 

 

237,948

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

22,517

 

 

17,643

 

 

94,772

 

 

55,229

 

Sales and marketing

52,400

 

 

43,275

 

 

210,581

 

 

130,667

 

General and administrative

21,883

 

 

19,672

 

 

140,718

 

 

64,764

 

Amortization of other intangibles

10,039

 

 

11,879

 

 

30,242

 

 

35,892

 

Restructuring and other

199

 

 

(24

)

 

1,093

 

 

459

 

Total operating expenses

107,038

 

 

92,445

 

 

477,406

 

 

287,011

 

Income (loss) from operations

7,555

 

 

(3,578

)

 

(179,974

)

 

(49,063

)

Interest expense, net

(5,995

)

 

(21,060

)

 

(39,715

)

 

(49,242

)

Other income (expense), net

67

 

 

(146

)

 

307

 

 

2,278

 

Income (loss) before income taxes

1,627

 

 

(24,784

)

 

(219,382

)

 

(96,027

)

Income tax benefit (expense)

136

 

 

2,682

 

 

(245,344

)

 

10,431

 

Net income (loss)

$

1,763

 

 

$

(22,102

)

 

$

(464,726

)

 

$

(85,596

)

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

0.01

 

 

$

(0.09

)

 

$

(1.78

)

 

$

(0.36

)

Diluted

$

0.01

 

 

$

(0.09

)

 

$

(1.78

)

 

$

(0.36

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

277,926

 

 

236,024

 

 

260,383

 

 

235,648

 

Diluted

280,156

 

 

236,024

 

 

260,383

 

 

235,648

 

UNAUDITED SHARE-BASED COMPENSATION

 

Three Months Ended

December 31,

 

Nine Months Ended

December 31,

 

2019

 

2018

 

2019

 

2018

Cost of revenues

$

1,317

 

 

$

476

 

 

$

17,346

 

 

$

3,466

 

Research and development

2,173

 

 

1,009

 

 

36,679

 

 

7,590

 

Sales and marketing

6,707

 

 

2,179

 

 

78,592

 

 

14,640

 

General and administrative

3,316

 

 

2,393

 

 

77,067

 

 

16,589

 

Total share-based compensation expense

$

13,513

 

 

$

6,057

 

 

$

209,684

 

 

$

42,285

 

DYNATRACE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

December 31, 2019

 

March 31, 2019

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

188,555

 

 

$

51,314

 

Accounts receivable, net of allowance for doubtful accounts

166,481

 

 

115,431

 

Deferred commissions, current

36,343

 

 

27,705

 

Prepaid expenses and other current assets

20,065

 

 

18,768

 

Total current assets

411,444

 

 

213,218

 

Property and equipment, net

28,030

 

 

17,925

 

Goodwill

1,270,650

 

 

1,270,120

 

Other intangible assets, net

215,784

 

 

259,123

 

Deferred tax assets, net

10,714

 

 

10,678

 

Deferred commissions, non-current

36,727

 

 

31,545

 

Other assets

8,981

 

 

7,649

 

Receivable from related party

5,977

 

 

1,108

 

Total assets

$

1,988,307

 

 

$

1,811,366

 

 

 

 

 

Liabilities and shareholders’ equity / member’s deficit

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

10,832

 

 

$

6,559

 

Accrued expenses, current

86,194

 

 

64,920

 

Current portion of long-term debt

 

 

9,500

 

Deferred revenue, current

352,207

 

 

272,772

 

Payable to related party

 

 

597,150

 

Total current liabilities

449,233

 

 

950,901

 

Deferred revenue, non-current

79,111

 

 

92,973

 

Accrued expenses, non-current

18,048

 

 

98,359

 

Deferred tax liabilities

2,489

 

 

47,598

 

Long-term debt, net of current portion

540,236

 

 

1,011,793

 

Total liabilities

1,089,117

 

 

2,201,624

 

Commitments and contingencies

 

 

 

Shareholders’ equity / member’s deficit:

 

 

 

Common shares, $0.001 par value, 600,000,000 shares

authorized, 280,784,786 shares issued and outstanding at

December 31, 2019

281

 

 

 

Common units, no par value, 100 units authorized, issued and

outstanding at March 31, 2019

 

 

 

Additional paid-in capital

1,560,559

 

 

(184,546

)

Accumulated deficit

(640,728

)

 

(176,002

)

Accumulated other comprehensive loss

(20,922

)

 

(29,710

)

Total shareholders’ equity / member’s deficit

899,190

 

 

(390,258

)

Total liabilities and shareholders’ equity / member’s deficit

$

1,988,307

 

 

$

1,811,366

 

DYNATRACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited – In thousands)

 

Nine Months Ended

December 31,

 

2019

 

2018

Cash flows from operating activities:

 

 

 

Net loss

$

(464,726

)

 

$

(85,596

)

Adjustments to reconcile net loss to cash (used in) provided by operations:

 

 

 

Depreciation

5,977

 

 

5,425

 

Amortization

44,098

 

 

54,852

 

Share-based compensation

209,684

 

 

42,285

 

Deferred income taxes

(45,686

)

 

(15,979

)

Other

4,313

 

 

661

 

Net change in operating assets and liabilities:

 

 

 

Accounts receivable

(49,022

)

 

(19,290

)

Deferred commissions

(13,484

)

 

(7,445

)

Prepaid expenses and other assets

(692

)

 

(814

)

Accounts payable and accrued expenses

37,537

 

 

21,222

 

Deferred revenue

64,905

 

 

89,612

 

Net cash (used in) provided by operating activities

(207,096

)

 

84,933

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchase of property and equipment

(15,143

)

 

(4,866

)

Capitalized software additions

(729

)

 

(790

)

Net cash used in investing activities

(15,872

)

 

(5,656

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Proceeds from initial public offering, net of underwriters’ discounts and

commissions

590,297

 

 

 

Settlement of deferred offering costs

(5,000

)

 

 

Proceeds from term loans

 

 

1,120,000

 

Debt issuance costs

 

 

(16,288

)

Repayment of term loans

(485,189

)

 

(25,856

)

Payments to related parties

 

 

(1,177,021

)

Contribution for tax associated with reorganization

265,000

 

 

 

Equity repurchases

(150

)

 

(649

)

Installments related to acquisition

(4,694

)

 

(3,653

)

Net cash provided by (used in) financing activities

360,264

 

 

(103,467

)

 

 

 

 

Effect of exchange rates on cash and cash equivalents

(55

)

 

(2,535

)

 

 

 

 

Net increase (decrease) in cash and cash equivalents

137,241

 

 

(26,725

)

 

 

 

 

Cash and cash equivalents, beginning of period

51,314

 

 

77,581

 

Cash and cash equivalents, end of period

$

188,555

 

 

$

50,856

 

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited – In thousands)

 

Three Months Ended December 31, 2019

 

GAAP

 

Share-based

compensation

 

Amortization

of other

intangibles

 

Restructuring

& other

 

Non-GAAP

Non-GAAP operating income:

 

 

 

 

 

 

 

 

 

Cost of revenues

$

28,705

 

 

$

(1,317

)

 

$

(3,824

)

 

$

 

 

$

23,564

 

 

Gross profit

114,593

 

 

1,317

 

 

3,824

 

 

 

 

119,734

 

 

Gross margin

80

%

 

 

 

 

 

 

 

84

%

 

Research and development

22,517

 

 

(2,173

)

 

 

 

 

 

20,344

 

 

Sales and marketing

52,400

 

 

(6,707

)

 

 

 

 

 

45,693

 

 

General and administrative

21,883

 

 

(3,316

)

 

 

 

(2,384

)

 

16,183

 

 

Amortization of other intangibles

10,039

 

 

 

 

(10,039

)

 

 

 

 

 

Restructuring and other

199

 

 

 

 

 

 

(199

)

 

 

 

Operating income

7,555

 

 

13,513

 

 

13,863

 

 

2,583

 

 

37,514

 

 

Operating margin

5

%

 

 

 

 

 

 

 

26

%

 

 

Three Months Ended December 31, 2018

 

GAAP

 

Share-based

compensation

 

Amortization

of other

intangibles

 

Restructuring

& other

 

Non-GAAP

 

Non-GAAP operating income:

 

 

 

 

 

 

 

 

 

 

Cost of revenues

$

25,823

 

 

$

(476

)

 

$

(4,558

)

 

$

 

 

$

20,789

 

 

Gross profit

88,867

 

 

476

 

 

4,558

 

 

 

 

93,901

 

 

Gross margin

77

%

 

 

 

 

 

 

 

82

%

 

Research and development

17,643

 

 

(1,009

)

 

 

 

 

 

16,634

 

 

Sales and marketing

43,275

 

 

(2,179

)

 

 

 

 

 

41,096

 

 

General and administrative

19,672

 

 

(2,393

)

 

 

 

(4,821

)

 

12,458

 

 

Amortization of other intangibles

11,879

 

 

 

 

(11,879

)

 

 

 

 

 

Restructuring and other

(24

)

 

 

 

 

 

24

 

 

 

 

Operating (loss) income

(3,578

)

 

6,057

 

 

16,437

 

 

4,797

 

 

23,713

 

 

Operating margin

(3

)%

 

 

 

 

 

 

 

21

%

 

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited – In thousands, except per share amounts)

 

Three Months Ended December 31,

 

2019

 

2018

Non-GAAP net income:

 

 

 

Net income (loss)

$

1,763

 

 

$

(22,102

)

Income tax benefit

(136

)

 

(2,682

)

Cash paid for tax

(4,209

)

 

(1,374

)

Tax associated with reorganization

1,558

 

 

 

Related party tax

(1,558

)

 

 

Interest expense, net

5,995

 

 

21,060

 

Cash paid for interest

(6,610

)

 

(18,757

)

Share-based compensation

13,513

 

 

6,057

 

Amortization of other intangibles

10,039

 

 

11,879

 

Amortization of acquired technology

3,824

 

 

4,558

 

Transaction and sponsor related costs

2,384

 

 

4,821

 

Restructuring and other

199

 

 

(24

)

(Gain) loss on currency translation

(67

)

 

146

 

Non-GAAP net income

$

26,695

 

 

$

3,582

 

 

 

 

 

Share count:

 

 

 

Weighted-average shares outstanding – basic

277,926

 

 

236,024

 

Weighted-average shares outstanding – diluted

280,156

 

 

236,024

 

 

 

 

 

Shares used in non-GAAP per share calculations:

 

 

 

Weighted-average shares outstanding – basic

277,926

 

 

236,024

 

Weighted-average shares outstanding – diluted

280,156

 

 

237,468

 

 

 

 

 

Net income (loss) per share:

 

 

 

Net income (loss) per share – basic

$

0.01

 

 

$

(0.09

)

Net income (loss) per share – diluted

$

0.01

 

 

$

(0.09

)

Non-GAAP net income per share – basic

$

0.10

 

 

$

0.02

 

Non-GAAP net income per share – diluted

$

0.10

 

 

$

0.02

 

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited – In thousands)

 

Three Months Ended December 31,

 

Trailing Twelve

Months Ended

December 31,

2019

 

2019

 

2018

 

Adjusted EBITDA:

 

 

 

 

 

Net income (loss)

$

1,763

 

 

$

(22,102

)

 

$

(495,324

)

Income tax (benefit) expense

(136

)

 

(2,682

)

 

232,058

 

Interest expense, net

5,995

 

 

21,060

 

 

60,318

 

Amortization

14,288

 

 

18,155

 

 

62,038

 

Depreciation

2,006

 

 

1,840

 

 

7,871

 

Restructuring and other

199

 

 

(24

)

 

2,397

 

Transaction and sponsor related costs

2,384

 

 

4,821

 

 

22,788

 

(Gain) loss on currency translation

(67

)

 

146

 

 

(670

)

Share-based compensation

13,513

 

 

6,057

 

 

238,550

 

Adjusted EBITDA

$

39,945

 

 

$

27,271

 

 

$

130,026

 

Contacts

Marc P. Griffin

646-277-1290

Marc.Griffin@ICRinc.com

Michael Bowen

203-682-8299

Michael.Bowen@ICRinc.com

Media Relations

Jack Murphy

646-677-1834

Jack.Murphy@ICRinc.com

Mike Maciag

Dynatrace

Mike.Maciag@dynatrace.com
650-279-3655

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