Dynatrace (DT) launched a successful IPO (initial public offering) on August 1, raising roughly $570 million as shares rose as much as 65 percent on the opening day of trading.
Dynatrace's $6.71 billion valuation bodes well for multiple IT management market segments -- including application performance monitoring (APM), cloud infrastructure monitoring, and much more.
Original ChannelE2E article from July 12, 2019 -- roughly three weeks before the IPO -- continues below.
Here are 10 key takeaways from the Dynatrace IPO prospectus and their potential implications for partners.
1. Key Market Segments and Competition: The company, currently owned by private equity firm Thoma Bravo, says it competes directly or indirectly with:
2. Headcount: As of June 30, 2019, the company had 1,981 full-time employees, including 647 in sales and marketing, 631 in research and development, 203 in administrative functions, 224 in services, and 276 in customer support. Among full-time employees as of June 30, 2019:
3. Blended Enterprise Sales Model: Dynatrace has global direct sales team and a network of partners, including resellers, system integrators, and managed service providers (MSPs). The company targets the largest 15,000 global enterprise accounts, which generally have annual revenues in excess of $750 million, Dynatrace says. Side note: The company makes no mention of any potential small business customer or partner push.
4. Partners - A Closer Look: The company's partner network spans:
5. Installed Base: Dynatrace had 1,364 customers as of March 31, 2019 -- up from 574 as of March 31, 2018, representing year-over-year growth of 138 percent, the company says.
6. Subscription Revenue: For the years ended March 31, 2017, 2018 and 2019, subscription revenue was:
7. Total Revenue: For the years ended March 31, 2017, 2018, and 2019, Dynatrace revenue was:
8. Net Income: For the years ended March 31, 2017, 2018, and 2019, Dynatrace net income was:
9. Adjusted EBITDA: For the years ended March 31, 2017, 2018, and 2019, adjusted EBITDA was:
10. IPO Goal: The company is seeking to raise just shy of $500 million from the IPO.
