That's why we call it the microservices wall because that's what customers hit. For the fiscal year, we are increasing ARR guidance to a range of $550 million to $555 million, representing year-over-year growth of 36% to 38%. The plunge in cash exposure is setting off the broker’s sell signal for equities.“Investor sentiment is bullish as vaccine hopes induce strong ‘buy the reopening’ trade,” said BofA strategists led by Michael Hartnett in a note. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. We continue to be cash flow positive on an operating basis while investing across the board in growth. You obviously announced a new product. I got to tell you that the monitoring space has had dozens and dozens of companies in it for decades now. The use cases are wider. Maybe that will change in the future, but I don't think that's dissimilar to some of our competitors, land in a position of strength and expand from there. So that's how we go-to-market today. And that's a key part of driving full TAM expansion in this area for us as we go forward. Ladies and gentlemen, thank you for standing by, and welcome to the Dynatrace second-quarter 2020 earnings conference call. And are there any relationships that help you get in the door to discover where those opportunities exist? So it's been a great advantage to us as we move people across on to the Dynatrace platform. Dynatrace Managed monitoring. That is starting to expand well. And the stat that I think Kevin gave you, which is 58% over trailing 12 months, 58% of the new customers added to the Dynatrace platform, somewhere a little over 900 customers there, 58% have been new logos to the business. I appreciate that part. So, we're seeing those customers, when they move off of Classic, expand on to the Dynatrace platform. Our next question will come from the line of Heather Bellini of Goldman Sachs. Richard Davis -- Canaccord Genuity -- Analyst. For the quarter, we had 270 million diluted weighted average shares outstanding. See you at the top! So, in summary, our execution across our key performance indicators remain strong. First of all, we incurred onetime fees of approximately $14.9 million primarily related to the IPO and mainframe spend, as well as the minimal restructuring that hit the P&L in the second quarter. He doesn't like the idea of everyone getting sucked into finance and get rich by outsmarting the rest of the world in marketable securities.Munger expects market returns in the next 10 years to be lower than the last 10. As an example of a converting customer, this past quarter, a Fortune 100 brick-and-mortar retailer and customer of our Classic product set signed a mid-6-figure contract to convert to the Dynatrace software intelligence platform with plenty of opportunity to grow in the multiple seven figures over time as they expand their cloud initiative. Dynatrace reported earnings of $0.10 per share in the same quarter last year, which would suggest a positive year over year growth rate of 30%. Splunk Inc. CEO Doug Merritt also reportedly moved to the Austin area. In addition to adding new modules to the Dynatrace platform, we continue to extend existing platform capabilities as well. Parthiv Varadarajan -- Jefferies -- Analyst. Our ARR expansion is solely the result of footprint and product expansion in our customer base. It's just that you've sort of forgotten about the fact that they all got swallowed up a handful of big players and turned into sort of suites of tooling. “He comes in on his private plane and he’s here and then he’s gone. 2 Likes. Apartment Investment and Management announces the separation of its businesses, creating two separate publicly traded companies. Is Pfizer Stock A Buy After FDA Authorizes Its Coronavirus Vaccine? “The answer is no. Dynatrace Holdings LLC (DT) Q2 2021 Earnings Call Transcript DT earnings call for the period ending September 30, 2020. So why do so many companies struggle with it? And I think it's what's creating the buzz around this concept of observability. Open a support ticket or view your previous tickets for help with Dynatrace, NAM, AppMon, or Synthetic Classic. We run a very efficient business with gross margin at 83% and EBITDA at 25%. This first purchase was to prove the value they saw in Dynatrace in the proof of concept and to test our digital experience module for mobile and web use in production. As we look ahead, we remain optimistic about the business outlook as our new Dynatrace platform continues to be adopted by a growing number of new enterprise customers, and each quarter, we are proving our ability to expand rapidly within our growing customer base. Investor's Business Daily. OK. And then let me just touch more kind of a question. So, if you look at where we've been, we've moved about $100 million off of the Classic stack over last six quarters of the member sales organization. After prepared remarks, we will open up the call for a question-and-answer session. Berkshire Hathaway Inc's (NYSE: BRK-A) (NYSE: BRK-B) Vice Chairman Charlie Munger, at a California Institute of Technology virtual event, pointed out the current market "frenzy." So that's still for us to do. [Operator instructions] Your first question will come from the line of Sterling Auty of JPMorgan. Dynatrace blog. As of September 30, we had cash and cash equivalents of $211.7 million, and our long-term debt was $569.8 million. Dynatrace Named One of the Top 10 Highest-Rated Cloud Companies to Work For by Battery Ventures and Glassdoor. Dynatrace reinvented. The value is quicker to realize. All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. For example, a major insurer in the U.K. has been in the process of digital transformation. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Stock Advisor launched in February of 2002. Costco is known for selling jumbo packs of toilet paper, rotisserie chicken and even 7-pound tubs of Nutella from its warehouse-style stores across the nation. I’ve moved to the State of Hawaii and I’ll be using the power of Zoom to work from the island of Lanai. Yahoo. We've been successful in moving our Classic customer base to the new Dynatrace platform because virtually every company has new enterprise cloud initiatives. She serves on the board of HubSpot and served as a Director of Carbon Black and Adaptive Insights, among others. But there’s a dark side to Dow 30k –and it’s going to take 99% of Americans by surprise. Information on stock, financials, earnings, subsidiaries, investors, and executives for Dynatrace. May 12, 2020 8:00 am ET. That was really helpful. Congrats on the quarter. It really is a tribute to our world-class engineering led by Bernd Greifeneder, our CTO and Founder, and the next-generation architecture he and his key architects reimagined five years ago. Overall, we have had a very good line of sight to completion, and we are very pleased with the success of the program and the benefits that have been realized by our customers once on the new platform. I think we talked about it last quarter. And with our powerful AI engine, Davis, at the core of our platform Dynatrace Digital Business Analytics instantly surfaces answers to degradations and anomalies with precise problem determination across the entire delivery chain so that human action can be taken rapidly to resolve issues before users and revenue are impacted. Follow us on Twitter @investornetwork. Brokerages expect Dynatrace, Inc. (NYSE:DT) to post $0.13 earnings per share (EPS) for the current quarter, according to Zacks Investment Research. As a quick reminder, our ARR expansion is not a result of our customer base converting from Classic products with the Dynatrace platform as we do not charge a fee. So as that continues, and that trend continues, I do think our new logo expansion to the franchise will continue to be robust. It's also the team you assemble around you. The acceleration in total revenue growth is being driven by the strong growth in subscription revenue, which was $115.8 million in the second quarter, an increase of 41% year over year. For the third quarter, we expect total revenue to be in the range of $137 million to $138 million, representing year-over-year growth of 19% to 20%. We don't just do observability, we actually do automation and intelligence, which drive greater business value. A large U.S.-based consumer products company that completed a seven-figure expansion just five months after their initial land purchase of the Dynatrace platform. And our next question will come from the line of Matt Hedberg of RBC Capital Markets. Dynatrace Holdings LLC (DT) Q2 2021 Earnings Call Transcript. This survey says stocks could be headed for a breather soon. Your counsel, guidance and support have been invaluable to our success. Finally, unlevered free cash flow for Q2 was $27.2 million, and it was $174.7 million on a trailing 12-month basis. December 8, 2020 December 8, 2020. Circling back to total ARR. We believe the added sales time and effort we've been spending on a near-term perspective is well worth it over the long term as we have transitioned our own business to drive sustainable growth and predictability. With that, let me turn the call over to Kevin Burns for a review of our financials. Learn more. So, we have some very good relationships with the global SI base as well as regional cloud integrators that have sprung up around what is OpenShift or Cloud Foundry, AWS, Azure, et cetera. In addition to a steady flow of net new customers, our Dynatrace dollar-based net expansion rate remained above the 120% threshold for the sixth consecutive quarter. This is Parthiv on for Brent. Forward-looking statements reflect our views only as of today. Most people are celebrating. And we're starting to see it play out in growing scale. I look forward to their ongoing contributions as we drive value and success for our customers, our shareholders and our employees. We're excited about the initial reception to and adoption of this new business analytic module, and we plan to further build out a complete set of analytics and integrations with adjacent business analytics players over the next several quarters. And so, could you kind of flesh out how like a Google Analytics and a Dynatrace are complementary not competitive? On the one hand, technological changes impact businesses, but on the other hand, Berkshire owns the Burlington Northern railroad. If you John, if you've like a lot of the questions on the call were obviously around like product and how --observability because you have so many different players. Recent Earnings Call Transcripts. Here's a look at how the program works and how it stacks up to other similar programs. This story and many more like it illustrate that as every company becomes a software company and transitions from old stack to new stack, the demand for Dynatrace to enable this transformation continues to grow. I think you mentioned pretty healthy new customer activity, but just curious if you can quantify that and especially in the context of the acceleration in customer adds. While it takes more time to find new stack buyers and transition licensing models, it yields a much more valuable customer in the strategic go-forward-growth segment of their business, their enterprise cloud. That's an interesting one as well. IN is an Issuer Direct brand, to learn more or for the latest financial news and market information, visit www.investornetwork.com. Our healthy RPO expansion has benefited from our move to a subscription-based news combined with an increase in the duration of our new subscription agreement. Please refer to the cautionary language in today's press release and to our Form 10-Q, which was filed with the SEC on September 5, 2019; and our other SEC filings for a discussion of the risks and uncertainties that could cause actual results to differ materially from expectations. So that's the way we see it today, and that's why I say over time, it's going to continue to scale out in monetization as we add additional value to the solution or to the module. Non-GAAP net income per share is now expected to be in the range of $0.23 to $0.24 per share, assuming approximately 275 million weighted average diluted shares for the year. Shares of General Electric Co. rallied Tuesday toward their first gain in four trading days, after two Wall Street analysts raised their price targets by more than 40%, both on upbeat outlooks for 2021. Since the end of the second quarter, we paid down $30 million of debt, and our current debt balance is $540 million. Let's conquer your financial goals together...faster. Now let me turn to our guidance, which has been increased due to the strength of our second-quarter results, combined with our continued positive outlook and the momentum of our business. As a result of these changes, total gross margins have increased, as I just mentioned. And in our field checks, at least what we found, and I think you guys have said the same thing, is that this is not the case. Our trailing 12-month adjusted EBITDA of $117.4 million. yesterday Dynatrace Open Q&A. You've obviously had AI, but just, a, can you just talk a little bit about module, who you sell it to; and the pricing and interest from customers. Once again, in Q2, our net expansion rate comfortably exceeded 120%. But now we see the workloads starting to hit the cloud platforms at an accelerated rate. ET. First, we've proven our ability to expand rapidly with customers once they are on the broader Dynatrace platform. Congrats from me as well. Yes. "We're in very uncharted waters. The initial land is very consistent with where it's been, in the 90,000 to 100,000 initial land. But over time, we'll expand that monetization opportunity, as I said, some additional analytics become available and some other pieces that we have on the road map to extend our functionality in this area to fit the business user needs. Curious as to how that has been trending. Dynatrace not only fit the new stack requirements perfectly, it proved invaluable to the company in getting up and running quickly and successfully across a very large hybrid e-commerce cloud environment at all layers of the stack: network, infrastructure, applications and user experience. Second part is just in terms of the renewal rate, and I'll take it, Caroline. Financially fragile Americans during COVID-19 have difficulty answering these 15 money questions — can you? Q2 2020 Dynatrace Inc Earnings Call 10/30/2019 05:00 PM (EDT) DT. This is particularly exciting for us for two reasons. Customers are excited about it because it gives them a direct connection between some of this sort of metrics and problem determination, items under the hood directly with business outcome metrics. We are very pleased that we are over halfway through the conversion process and believe we will substantially complete this process over the next four quarters. That's true foot for an expansion. What Happened: Munger said that too many people are caught up in the frenzy of activity in the investment field. He said that Sequoia had made more money than anybody.See more from Benzinga * Click here for options trades from Benzinga * Asia Slips, Europe Mixed On Tighter Curbs, Looming Lockdown Fears * Google Kills Its Google Home Max Smart Speaker Line(C) 2020 Benzinga.com. Market data powered by FactSet and Web Financial Group. Cumulative Growth of a $10,000 Investment in Stock Advisor, Dynatrace Holdings LLC (DT) Q2 2020 Earnings Call Transcript @themotleyfool #stocks $DT, This Cloud Pioneer Is Ushering in a New Cybersecurity Trend in 2021, Why I Just Purchased Shares of AI Cloud Observability Company Dynatrace, Dynatrace Holdings LLC (DT) Q2 2021 Earnings Call Transcript, DataDog Rival Sumo Logic Files for IPO to Get in on the Rally, Copyright, Trademark and Patent Information. 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