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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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47-2386428
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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Common stock, par value $0.001 per share
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DT
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New York Stock Exchange
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Emerging growth company
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our future financial performance, including our expectations regarding our revenue, annual recurring revenue, gross profit or gross margin, operating expenses, ability to generate cash flow, revenue mix and ability to maintain future profitability;
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our expectations regarding the potential impact of the COVID-19 pandemic on our business, operations, and the markets in which we and our partners and customers operate;
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anticipated trends and growth rates in our business and in the markets in which we operate;
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our ability to continue to convert our customers from our Classic products to our Dynatrace® platform;
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our ability to maintain and expand our customer base and our partner network;
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our ability to sell our applications and expand internationally;
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our ability to anticipate market needs and successfully develop new and enhanced solutions to meet those needs;
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our ability to hire and retain necessary qualified employees to grow our business and expand our operations;
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the evolution of technology affecting our applications, platform and markets;
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our ability to adequately protect our intellectual property; and
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our ability to service our debt obligations;
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1)
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Cloud Transformation: Enterprises are building and deploying software across multiple public and on-premise platforms, creating significant visibility challenges across all of an enterprise’s hosted environments.
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2)
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Application Complexity: Applications are increasingly complex and deployed as microservices-based architectures that are written in multiple different programming languages with hundreds of loosely coupled service connections. The scale of this complexity is heightened by the advent of the Internet of Things, which increases the number of potential sources of application failure.
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3)
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DevOps: Ensuring that software updates work without issues has grown more challenging due to the increased frequency of software releases, reduced testing time, and the use of independent development teams.
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4)
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User Experience: User expectations for software performance have rapidly increased and enterprises are focused on advancing branded experiences to maximize revenue, differentiate offerings, and retain competitive positions.
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Ability to build better applications at a faster rate. Cloud-based application development technologies such as container and microservices architectures, enable enterprises to focus developer resources more on creating and improving value-add application features and less on managing underlying operating systems and infrastructure. Gartner estimates that by 2022, more than 75% of global organizations will be running containerized applications in production, which is a significant increase from fewer than 30% today. In addition to new cloud-based development technologies, enterprises are adopting new processes such as DevOps and Artificial Intelligence for IT Operations, or AIOps, that help accelerate the software delivery cycle.
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Operational efficiency. Enterprises are moving to the cloud to reduce spending on expensive and static systems, the data centers to house them, the energy to run them and the IT staff needed to maintain them.
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Agility. Cloud services can be purchased dynamically as demand ebbs and flows over time, affording greater flexibility, financial efficiencies, and scale than traditional systems. Enterprises can scale capacity up and down to address seasonality or quickly address unexpected spikes in demand without needing to purchase and maintain infrastructure for peak demand and leaving it underutilized during other times.
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Greater complexity. Multi-cloud strategies require that IT teams manage applications and ensure interoperability of operations between private and multiple public clouds, such as AWS, Azure, Google Cloud Platform, or SAP. In addition, these applications are containerized and increasingly fragmented into microservices that are hosted across multiple cloud platforms, creating interdependencies across heterogeneous environments that increase the risk of incompatibility issues and the number of potential failure points if the applications are not deployed and maintained correctly.
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Highly dynamic environments. Cloud infrastructure and applications are built to scale up or down in real-time depending upon usage and traffic. The automation required to monitor these highly dynamic environments is beyond what is required for monolithic, on-premise applications.
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Massive scale. As software becomes more critical to business success, the number and size of applications will continue to grow and encompass more features and greater functionality. At the same time, web-scale architectures are enabling
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More frequent changes to software. The adoption of DevOps practices and cloud architectures have increased the speed at which software updates can be developed and deployed. With the application development lifecycle accelerating, enterprises must adapt their software operations environment and culture to ensure that performance and business outcomes are not adversely affected by frequent changes.
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•
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Manual configuration processes that do not scale. Traditional monitoring tools require unique agents for each component of an application and rely on IT personnel to manually pre-configure each agent. The complexity and dynamic nature of multi-cloud applications, which can include thousands of containers and microservices, makes this multi-agent approach costly, slow, and impractical to install and maintain, especially as these applications are rapidly modified and updated.
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Not designed to capture data across the full application stack. Traditional APM solutions were created to view a limited portion of the full software stack and provide visibility only into individual applications, without providing visibility into how the applications are interconnected. In order to get a complete view of all applications, from the underlying infrastructure to the user experience, IT personnel are required to manually implement and manage many disparate tools. We believe this approach has resulted in enterprises overinvesting in operations and underinvesting in development, which slows innovation.
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Only able to provide data, not answers. Traditional monitoring tools provide data only about narrow components of the technology stack. As a result, IT teams must manually integrate and correlate the data from disparate systems and apply their own assumptions to identify the underlying cause of performance issues. This process is slow, prone to errors, and is made especially challenging by the complexity of multi-cloud applications.
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Collect limited snapshots of data that do not provide real-time observability. Traditional APM tools were not designed for the far larger and more complex data sets produced by multi-cloud applications and can only capture snapshots of application performance or user data. This approach requires these tools to rely on partial data sets, reducing their effectiveness in performing precise root-cause determination, adding risk, and delaying innovation. In addition, traditional monitoring tools do not provide visibility into containers and microservices, which leads to blind spots in software performance monitoring when used in cloud-based environments.
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Lack of flexible deployment options. Traditional monitoring solutions are either deployed as SaaS-only or on-premise-only. SaaS-only solutions often fail to meet the strict governance, security, and scale requirements of large enterprises, and were not built to monitor on-premise applications, making them incompatible with the needs of customers who manage hybrid-hosted applications. Conversely, traditional on-premise solutions were not built to manage cloud applications and are typically upgraded less frequently and thus innovate more slowly than cloud-based applications.
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Single agent, fully automated configuration. Dynatrace® is installed as a single agent, which we refer to as OneAgent®, that automatically configures itself, continuously discovering all components of the full-stack to enable high fidelity and web-scale data capture. OneAgent® dynamically profiles the performance of all components of the full-stack with code-level precision, even as applications and environments update and change.
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Full-stack, all-in-one approach with deep cloud integrations. Dynatrace® combines APM with Infrastructure Monitoring, AIOps, Digital Experience Management, or DEM, and Digital Business Analytics in a single full-stack approach. We believe that this all-in-one approach reduces the need for a variety of disparate tools and enables our customers to improve productivity and decision making while reducing operating costs. Dynatrace® provides out-of-the-box configuration for the leading cloud platforms, such as AWS, Azure, Google Cloud Platform, Red Hat OpenShift, VMware Tanzu, and SAP, as well as coverage for traditional on-premise systems, including mainframe and monolithic applications in a single, easy-to-use, intelligent platform.
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AI-powered, answer-centric insights. Davis™, our explainable AI engine, dynamically baselines the performance of all components in the full-stack, continually learning normal performance thresholds in order to provide precise answers when performance deviates from expected or desired conditions. Unlike correlation engines that overwhelm IT professionals with dozens of alerts from many different tools, Dynatrace® provides a single problem resolution and precise root cause determination. We believe that the accuracy and precision of the answers delivered by our AI engine enable our customers to shift from reactive remediation, providing a substantial advantage in time, resource, efficiency, customer satisfaction, and business outcomes.
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Web-scale and enterprise grade. Dynatrace® utilizes big data architecture and enterprise-proven cloud technologies that are engineered for web-scale environments. With role-based access and advanced security functionality, Dynatrace® was purpose-built for enterprise-wide adoption by the largest companies in the world.
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Flexible deployment options. We deploy our platform as a SaaS solution, with the option of retaining the data in the cloud, or at the edge in customer-provisioned infrastructure, which we refer to as Dynatrace® Managed. The Dynatrace® Managed offering allows customers to maintain control of the environment where their data resides, whether in the cloud or on-premise, combining the simplicity of SaaS with the ability to adhere to their own data security and sovereignty requirements. Our Mission Control center automatically upgrades all Dynatrace® instances and offers on-premise cluster customers auto-deployment options that suit their specific enterprise management processes.
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Extend our technology and market leadership position. We intend to maintain our position as the market-leading software intelligence platform through increased investment in research and development and continued innovation. We expect to focus on expanding the functionality of Dynatrace® and investing in capabilities that address new market opportunities. We believe this strategy will enable new growth opportunities and allow us to continue to deliver differentiated high-value outcomes to our customers.
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Grow our customer base. We intend to drive new customer growth by expanding our direct sales force focused on the largest 15,000 global enterprise accounts, which generally have annual revenues in excess of $750 million. Approximately 59% of our Dynatrace® customers added during the fiscal year ended March 31, 2020 are new customers and the initial
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Increase penetration within existing customers. We plan to continue to increase the penetration within our existing customers by expanding the breadth of our platform capabilities to provide for continued cross-selling opportunities. In addition, we believe the ease of implementation for Dynatrace® provides us the opportunity to expand adoption within our existing enterprise customers, across new customer applications, and into additional business units or divisions. Once customers are on the Dynatrace® platform, we have seen significant dollar-based net expansion due to the ease of use and power of our new platform.
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Enhance our strategic partner ecosystem. Our strategic partners include industry-leading system integrators, software vendors, and cloud and technology providers. We intend to continue to invest in our partner ecosystem, with a particular emphasis on expanding our strategic alliances and cloud-focused partnerships, such as AWS, Azure, Google Cloud Platform, Red Hat OpenShift, and VMware Tanzu.
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Cloud providers. We work with many of the major cloud providers to increase awareness of our products and make it easy for customers to access our software. Our software is developed to run in and integrate with leading cloud providers, such as, AWS, Azure, and Google Cloud Platform. Our customers are also able to procure our software through leading marketplaces such as AWS, Azure, SAP, and IBM.
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Resellers. Our resellers market and sell our products throughout the world, and provide a go-to-market channel in regions where we do not have a direct presence, such as Africa, Japan, the Middle East, Russia, and South Korea.
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Technology alliance partners. We partner with leading innovative technology organizations such as Red Hat, VMWare, and Atlassian to develop integrations, best practices, and extended capabilities that help our customers and solution partners achieve faster time to market and enhanced value in dynamic multi-cloud environments.
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System integrators. We have a network of systems integrators, both global and regional, that help joint customers integrate our products into their multi-cloud ecosystems. These partners extend our scale and reach and collaborate with our direct sales teams, bringing domain expertise in technologies and industries along with additional offerings powered by Dynatrace®.
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APM vendors, such as Cisco AppDynamics, Broadcom, and New Relic;
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infrastructure monitoring vendors, such as BMC, Datadog, and Nagios;
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DEM vendors, such as Akamai and Catchpoint;
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point solutions from public cloud providers; and
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IT operations management, AIOps, and business intelligence providers that with offerings that cover some portion of the capabilities that we provide.
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artificial intelligence capabilities;
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automation;
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product features, functionality, and reliability;
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ease and cost of deployment, use and maintenance;
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deployment options and flexibility;
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customer, technology, and platform support;
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ability to easily integrate with customers software application and IT infrastructure environments;
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the quality of data collection and correlation;
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interoperability and ease of integration; and
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brand recognition.
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our ability to attract new customers and retain and increase sales to existing customers;
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our ability to continue to expand customer adoption of our Dynatrace® platform, including the conversion of customers from our Classic products;
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our ability to develop our existing platform and introduce new solutions on our platform;
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continued growth of cloud-based services and solutions;
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our ability to continue to develop and offer products and solutions that are superior to those of our competitors;
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our ability to retain customers;
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our ability to expand into new geographies and markets, including the business intelligence and data analytics market; and
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our ability to hire and retain sufficient numbers of sales and marketing, research and development and general and administrative personnel, and expand our global operations.
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fluctuations in the demand for our solutions, and the timing of purchases by our customers, particularly larger purchases;
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fluctuations in the rate of utilization by enterprise customers of the cloud to manage their business needs, or a slow-down in the migration of enterprise systems to the cloud;
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our ability to attract new customers and retain existing customers;
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our ability to expand into new geographies and markets, including the business intelligence and data analytics market;
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the budgeting cycles and internal purchasing priorities of our customers;
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changes in customer renewal rates, churn and our ability to cross-sell additional solutions to our existing customers and our ability to up-sell additional quantities of previously purchased products to existing customers;
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the seasonal buying patterns of our customers;
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the payment terms and contract term length associated with our product sales and their effect on our billings and free cash flow;
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changes in customer requirements or market needs;
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the emergence of significant privacy, data protection, security or other threats, regulations or requirements applicable to the use of enterprise systems or cloud-based systems that we are not prepared to meet or that require additional investment by us;
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changes in the demand and growth rate of the market for software and systems monitoring and analytics solutions;
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our ability to anticipate or respond to changes in the competitive landscape, or improvements in the functionality of competing solutions that reduce or eliminate one or more of our competitive advantages;
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our ability to timely develop, introduce and gain market acceptance for new solutions and product enhancements;
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our ability to adapt and update our products and solutions on an ongoing and timely basis in order to maintain compatibility and efficacy with the frequently changing and expanding variety of software and systems that our products are designed to monitor;
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our ability to maintain and expand our relationships with strategic technology partners, who own, operate and offer the major platforms on which cloud applications operate, with which we must interoperate and remain compatible, and from which we must obtain certifications and endorsements in order to maintain credibility and momentum in the market;
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our ability to control costs, including our operating expenses;
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our ability to efficiently complete and integrate any acquisitions or business combinations that we may undertake in the future;
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general economic, industry and market conditions, both domestically and in our foreign markets;
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the emergence of new technologies or trends in the marketplace;
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foreign currency exchange rate fluctuations;
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the timing of revenue recognition for our customer transactions, and the effect of the mix of time-based licenses, SaaS subscriptions and perpetual licenses on the timing of revenue recognition;
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extraordinary expenses, such as litigation or other dispute-related settlement payments; and
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future accounting pronouncements or changes in our accounting policies.
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incur additional indebtedness or guarantee indebtedness of others;
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create additional liens on our assets;
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pay dividends and make other distributions on our capital stock, and redeem and repurchase our capital stock;
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make investments, including acquisitions;
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make capital expenditures;
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enter into mergers or consolidations or sell assets;
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engage in sale and leaseback transactions; or
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enter into transactions with affiliates.
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increasing our vulnerability to general adverse economic and industry conditions;
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requiring us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions, research and development efforts and other general corporate purposes;
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limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and
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exposing us to the risk of increased interest rates as certain of our borrowings are, and may in the future be, at variable interest rates.
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delays in releasing new solutions or enhancements to the market;
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delays or failures to provide updates to customers to maintain compatibility between Dynatrace® and the various applications and platforms being used in the customers’ application and multi-cloud environment;
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the failure to accurately predict market or customer demands;
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defects, errors or failures in the design or performance of our new solutions or solution enhancements;
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negative publicity about the performance or effectiveness of our solutions;
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the introduction or anticipated introduction of competing products by our competitors; and
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the perceived value of our solutions or enhancements relative to their cost.
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offer a compelling software intelligence platform and solutions;
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execute our sales and marketing strategy;
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attract, effectively train and retain new sales, marketing, professional services and support personnel in the markets we pursue;
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develop or expand relationships with technology partners, systems integrators, resellers, online enterprise marketplaces and other partners;
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expand into new geographies and markets, including the business intelligence and data analytics market;
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deploy our platform and solutions for new customers; and
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provide quality customer support.
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larger sales and marketing budgets and resources;
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access to larger customer bases which often provide incumbency advantages;
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broader global distribution and presence;
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the ability to bundle competitive offerings with other products and services;
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greater brand recognition and longer operating histories;
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lower labor and development costs;
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greater resources to make acquisitions;
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larger and more mature intellectual property portfolios; and
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substantially greater financial, technical, management and other resources.
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increased expenses associated with international sales and operations, including establishing and maintaining office space and equipment for our international operations;
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fluctuations in exchange rates between currencies in the markets where we do business;
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risks associated with trade restrictions and additional legal requirements, including the exportation of our technology or source code that is required in some of the countries in which we operate;
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greater risk of unexpected changes in regulatory rules, regulations and practices, tariffs and tax laws and treaties;
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compliance with United States and foreign import and export control and economic sanctions laws and regulations, including the Export Administration Regulations administered by the United States Department of Commerce’s Bureau of Industry and Security and the executive orders and laws implemented by the United States Department of the Treasury’s Office of Foreign Asset Controls;
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compliance with anti-bribery laws, including the United States Foreign Corrupt Practices Act, and the U.K. Anti-Bribery Act;
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compliance with privacy, data protection and data security laws of many countries, including the European Union’s General Data Protection Regulation, or GDPR, which became effective in May 2018, and the California Consumer Privacy Act, or CCPA, which became effective on January 1, 2020;
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heightened risk of unfair or corrupt business practices in certain geographies, and of improper or fraudulent sales arrangements that may impact financial results and result in restatements of, or irregularities in, financial statements;
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limited or uncertain protection of intellectual property rights in some countries and the risks and costs associated with monitoring and enforcing intellectual property rights abroad;
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greater difficulty in enforcing contracts and managing collections in certain jurisdictions, as well as longer collection periods;
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management communication and integration problems resulting from cultural and geographic dispersion;
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social, economic and political instability, epidemics and pandemics, terrorist attacks and security concerns in general; and
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potentially adverse tax consequences.
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announcements of new products or technologies, commercial relationships, acquisitions or other events by us or our competitors;
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changes in how customers perceive the benefits of our platform;
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shifts in the mix of billings and revenue attributable to perpetual licenses, term licenses and SaaS subscriptions from quarter to quarter;
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departures of key personnel;
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price and volume fluctuations in the overall stock market from time to time;
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fluctuations in the trading volume of our shares or the size of our public float;
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sales of large blocks of our common stock, including by the Thoma Bravo Funds;
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actual or anticipated changes or fluctuations in our operating results;
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whether our operating results meet the expectations of securities analysts or investors;
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changes in actual or future expectations of investors or securities analysts;
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litigation involving us, our industry or both;
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regulatory developments in the United States, foreign countries or both;
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general economic conditions and trends; and
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major catastrophic events in our domestic and foreign markets.
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a majority of the board of directors consist of independent directors as defined under the rules of the NYSE;
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the nominating and governance committee be composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities;
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the compensation committee be composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities; and
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annual performance evaluations of the nominating and governance committee and the compensation committee be performed.
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the composition of our board of directors, which has the authority to direct our business and to appoint and remove our officers;
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approving or rejecting a merger, consolidation or other business combination;
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raising future capital; and
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amending our charter and bylaws, which govern the rights attached to our common stock.
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a classified board of directors with three-year staggered terms, which could delay the ability of stockholders to change the membership of a majority of our board of directors;
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after Thoma Bravo ceases to beneficially own at least 30% of the outstanding shares of our common stock, removal of directors only for cause, and subject to the affirmative vote of the holders of 66 2/3% or more of our outstanding shares of capital stock then entitled to vote at a meeting of our stockholders called for that purpose;
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the ability of our board of directors to issue shares of preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer;
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allowing Thoma Bravo to fill any vacancy on our board of directors for so long as affiliates of Thoma Bravo own 30% or more of our outstanding shares of common stock and thereafter, allowing only our board of directors to fill vacancies on our board of directors, which prevents stockholders from being able to fill vacancies on our board of directors;
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after Thoma Bravo ceases to beneficially own at least a majority of the outstanding shares of our common stock, a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of our stockholders;
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after we cease to be a controlled company, the requirement that a special meeting of stockholders may be called only by our board of directors, the chairperson of our board of directors, our chief executive officer or our president (in the absence of a chief executive officer), which could delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal of directors;
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after we cease to be a controlled company, the requirement for the affirmative vote of holders of at least 66 2/3% of the voting power of all of the then outstanding shares of the voting stock, voting together as a single class, to amend the provisions of our charter relating to the management of our business (including our classified board structure) or certain provisions of our bylaws, which may inhibit the ability of an acquirer to effect such amendments to facilitate an unsolicited takeover attempt;
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•
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the ability of our board of directors to amend the bylaws, which may allow our board of directors to take additional actions to prevent an unsolicited takeover and inhibit the ability of an acquirer to amend the bylaws to facilitate an unsolicited takeover attempt;
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•
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advance notice procedures with which stockholders must comply to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders’ meeting, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of us; and
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a prohibition of cumulative voting in the election of our board of directors, which would otherwise allow less than a majority of stockholders to elect director candidates.
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Base Period
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||||||||
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8/1/2019
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9/30/2019
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12/31/2019
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|
3/31/2020
|
||||||||
Dynatrace, Inc.
|
$
|
100.00
|
|
|
$
|
78.28
|
|
|
$
|
84.36
|
|
|
$
|
84.32
|
|
S&P 500
|
$
|
100.00
|
|
|
$
|
100.78
|
|
|
$
|
110.17
|
|
|
$
|
97.68
|
|
S&P 500 Information Technology
|
$
|
100.00
|
|
|
$
|
100.25
|
|
|
$
|
114.54
|
|
|
$
|
114.86
|
|
(1)
|
Includes share-based compensation expense as follows:
|
|
Fiscal Year Ended March 31,
|
||||||||||||||
|
2020
|
|
2019
|
|
2018
|
|
2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Cost of revenue
|
$
|
18,685
|
|
|
$
|
5,777
|
|
|
$
|
1,720
|
|
|
$
|
28
|
|
Research and development
|
38,670
|
|
|
12,566
|
|
|
3,858
|
|
|
71
|
|
||||
Sales and marketing
|
84,698
|
|
|
24,673
|
|
|
7,536
|
|
|
122
|
|
||||
General and administrative
|
80,425
|
|
|
28,135
|
|
|
9,180
|
|
|
128
|
|
||||
Total share-based compensation
|
$
|
222,478
|
|
|
$
|
71,151
|
|
|
$
|
22,294
|
|
|
$
|
349
|
|
(2)
|
See Note 15 to our consolidated financial statements for further details on the calculations of basic and diluted net (loss) income per share.
|
|
As of
|
||||||||||||||
|
2020
|
|
2019
|
|
2018
|
|
2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Consolidated Balance Sheet Data:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
213,170
|
|
|
$
|
51,314
|
|
|
$
|
77,581
|
|
|
$
|
57,948
|
|
Working capital, excluding deferred revenue (1)
|
365,085
|
|
|
132,239
|
|
|
182,826
|
|
|
148,640
|
|
||||
Total assets
|
2,042,080
|
|
|
1,811,366
|
|
|
1,899,002
|
|
|
1,893,235
|
|
||||
Deferred revenue, current and non-current portion
|
444,771
|
|
|
365,745
|
|
|
246,627
|
|
|
159,717
|
|
||||
Long-term debt, net of current portion
|
509,985
|
|
|
1,011,793
|
|
|
—
|
|
|
—
|
|
||||
Total liabilities
|
1,080,583
|
|
|
2,201,624
|
|
|
2,167,692
|
|
|
2,157,741
|
|
||||
Total shareholders’ equity / member’s deficit
|
961,497
|
|
|
(390,258
|
)
|
|
(268,690
|
)
|
|
(264,506
|
)
|
(1)
|
We define working capital as current assets less current liabilities, excluding related-party payables.
|
•
|
Extend our technology and market leadership position. We intend to maintain our position as the market-leading software intelligence platform through increased investment in research and development and continued innovation. We expect to focus on expanding the functionality of Dynatrace® and investing in capabilities that address new market opportunities. We believe this strategy will enable new growth opportunities and allow us to continue to deliver differentiated high-value outcomes to our customers.
|
•
|
Grow our customer base. We intend to drive new customer growth by expanding our direct sales force focused on the largest 15,000 global enterprise accounts, which generally have annual revenues in excess of $750 million. The initial average Dynatrace® ARR for the 601 gross new customers added during the year ended March 31, 2020 was approximately $94,000. In addition, we expect to leverage our global partner ecosystem to add new customers in geographies where we have direct coverage and work jointly with our partners. In other geographies, such as Africa, Japan, the Middle East, Russia and South Korea, we utilize a multi-tier “master reseller” model.
|
•
|
Increase penetration within existing customers. We plan to continue to increase penetration within our existing customers by expanding the breadth of our platform capabilities to provide for continued cross-selling opportunities. In addition, we believe the ease of implementation for Dynatrace® provides us the opportunity to expand adoption within our existing enterprise customers, across new customer applications, and into additional business units or divisions. Once customers are on the Dynatrace® platform, we have seen significant dollar-based net expansion due to the ease of use and power of our new platform.
|
•
|
Enhance our strategic partner ecosystem. Our strategic partners include industry-leading system integrators, software vendors, and cloud and technology providers. We intend to continue to invest in our partner ecosystem, with a particular emphasis on expanding our strategic alliances and cloud-focused partnerships, such as AWS, Azure, Google Cloud Platform, Red Hat OpenShift, and VMware Tanzu.
|
|
As of
|
||||||||||||||||||||||||||||||
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
6/30/2018
|
||||||||||||||||
Number of Dynatrace® Customers
|
2,373
|
|
|
2,208
|
|
|
1,828
|
|
|
1,578
|
|
|
1,364
|
|
|
1,149
|
|
|
899
|
|
|
733
|
|
||||||||
Dynatrace® ARR (in thousands)
|
$
|
527,830
|
|
|
$
|
465,885
|
|
|
$
|
376,816
|
|
|
$
|
326,298
|
|
|
$
|
282,815
|
|
|
$
|
226,976
|
|
|
$
|
159,949
|
|
|
$
|
118,371
|
|
Classic ARR (in thousands)
|
$
|
44,928
|
|
|
$
|
68,605
|
|
|
$
|
94,090
|
|
|
$
|
111,324
|
|
|
$
|
120,459
|
|
|
$
|
145,341
|
|
|
$
|
166,490
|
|
|
$
|
187,732
|
|
Total ARR (in thousands)
|
$
|
572,758
|
|
|
$
|
534,490
|
|
|
$
|
470,906
|
|
|
$
|
437,622
|
|
|
$
|
403,274
|
|
|
$
|
372,317
|
|
|
$
|
326,439
|
|
|
$
|
306,103
|
|
Dynatrace® Net Expansion Rate
|
120%+
|
|
|
120%+
|
|
|
120%+
|
|
|
120%+
|
|
|
120%+
|
|
|
120%+
|
|
|
120%+
|
|
|
120%+
|
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
2020
|
|
2019
|
|
2018
|
||||||||||||||||
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||
(in thousands, except percentages)
|
||||||||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Subscription
|
$
|
487,817
|
|
|
89
|
%
|
|
$
|
349,830
|
|
|
81
|
%
|
|
$
|
257,576
|
|
|
65
|
%
|
License
|
12,686
|
|
|
3
|
%
|
|
40,354
|
|
|
9
|
%
|
|
98,756
|
|
|
25
|
%
|
|||
Service
|
45,300
|
|
|
8
|
%
|
|
40,782
|
|
|
10
|
%
|
|
41,715
|
|
|
10
|
%
|
|||
Total revenue
|
545,803
|
|
|
100
|
%
|
|
430,966
|
|
|
100
|
%
|
|
398,047
|
|
|
100
|
%
|
|||
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of subscription
|
73,193
|
|
|
13
|
%
|
|
56,934
|
|
|
13
|
%
|
|
48,270
|
|
|
12
|
%
|
|||
Cost of service
|
39,289
|
|
|
7
|
%
|
|
31,529
|
|
|
7
|
%
|
|
30,316
|
|
|
8
|
%
|
|||
Amortization of acquired technology
|
16,449
|
|
|
4
|
%
|
|
18,338
|
|
|
5
|
%
|
|
17,948
|
|
|
4
|
%
|
|||
Total cost of revenue (1)
|
128,931
|
|
|
24
|
%
|
|
106,801
|
|
|
25
|
%
|
|
96,534
|
|
|
24
|
%
|
|||
Gross profit
|
416,872
|
|
|
76
|
%
|
|
324,165
|
|
|
75
|
%
|
|
301,513
|
|
|
76
|
%
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Research and development (1)
|
119,281
|
|
|
22
|
%
|
|
76,759
|
|
|
18
|
%
|
|
58,320
|
|
|
15
|
%
|
|||
Sales and marketing (1)
|
266,175
|
|
|
49
|
%
|
|
178,886
|
|
|
42
|
%
|
|
145,350
|
|
|
37
|
%
|
|||
General and administrative (1)
|
161,983
|
|
|
30
|
%
|
|
91,778
|
|
|
21
|
%
|
|
64,114
|
|
|
16
|
%
|
|||
Amortization of other intangibles
|
40,280
|
|
|
7
|
%
|
|
47,686
|
|
|
11
|
%
|
|
50,498
|
|
|
13
|
%
|
|||
Restructuring and other
|
1,092
|
|
|
|
|
1,763
|
|
|
|
|
4,990
|
|
|
|
||||||
Total operating expenses
|
588,811
|
|
|
|
|
396,872
|
|
|
|
|
323,272
|
|
|
|
||||||
Loss from operations
|
(171,939
|
)
|
|
|
|
(72,707
|
)
|
|
|
|
(21,759
|
)
|
|
|
||||||
Other expense, net
|
(46,594
|
)
|
|
|
|
(67,204
|
)
|
|
|
|
(30,016
|
)
|
|
|
||||||
Loss before income taxes
|
(218,533
|
)
|
|
|
|
(139,911
|
)
|
|
|
|
(51,775
|
)
|
|
|
||||||
Income tax (expense) benefit
|
(199,491
|
)
|
|
|
|
23,717
|
|
|
|
|
60,997
|
|
|
|
||||||
Net (loss) income
|
$
|
(418,024
|
)
|
|
|
|
$
|
(116,194
|
)
|
|
|
|
$
|
9,222
|
|
|
|
(1)
|
Includes share-based compensation expense as follows:
|
|
Fiscal Year Ended March 31,
|
||||||||||||||||
|
2020
|
|
2019
|
|
2018
|
||||||||||||
|
(in thousands)
|
||||||||||||||||
Cost of revenue
|
$
|
18,685
|
|
|
|
|
$
|
5,777
|
|
|
|
|
$
|
1,720
|
|
|
|
Research and development
|
38,670
|
|
|
|
|
12,566
|
|
|
|
|
3,858
|
|
|
|
|||
Sales and marketing
|
84,698
|
|
|
|
|
24,673
|
|
|
|
|
7,536
|
|
|
|
|||
General and administrative
|
80,425
|
|
|
|
|
28,135
|
|
|
|
|
9,180
|
|
|
|
|||
Total share-based compensation
|
$
|
222,478
|
|
|
|
|
$
|
71,151
|
|
|
|
|
$
|
22,294
|
|
|
|
|
Fiscal Year Ended March 31,
|
|
Change
|
|||||||||||
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
|
(in thousands, except percentages)
|
|||||||||||||
Subscription
|
$
|
487,817
|
|
|
$
|
349,830
|
|
|
$
|
137,987
|
|
|
39
|
%
|
License
|
12,686
|
|
|
40,354
|
|
|
(27,668
|
)
|
|
(69
|
)%
|
|||
Service
|
45,300
|
|
|
40,782
|
|
|
4,518
|
|
|
11
|
%
|
|||
Total revenue
|
$
|
545,803
|
|
|
$
|
430,966
|
|
|
$
|
114,837
|
|
|
27
|
%
|
|
Fiscal Year Ended March 31,
|
|
Change
|
|||||||||||
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
|
(in thousands, except percentages)
|
|||||||||||||
Cost of subscription
|
$
|
73,193
|
|
|
$
|
56,934
|
|
|
$
|
16,259
|
|
|
29
|
%
|
Cost of service
|
39,289
|
|
|
31,529
|
|
|
7,760
|
|
|
25
|
%
|
|||
Amortization of acquired technology
|
16,449
|
|
|
18,338
|
|
|
(1,889
|
)
|
|
(10
|
)%
|
|||
Total cost of revenue
|
$
|
128,931
|
|
|
$
|
106,801
|
|
|
$
|
22,130
|
|
|
21
|
%
|
|
Fiscal Year Ended March 31,
|
|
Change
|
|||||||||||
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
|
(in thousands, except percentages)
|
|||||||||||||
Gross profit:
|
|
|
|
|
|
|
|
|||||||
Subscription
|
$
|
414,624
|
|
|
$
|
292,896
|
|
|
$
|
121,728
|
|
|
42
|
%
|
License
|
12,686
|
|
|
40,354
|
|
|
(27,668
|
)
|
|
(69
|
)%
|
|||
Service
|
6,011
|
|
|
9,253
|
|
|
(3,242
|
)
|
|
(35
|
)%
|
|||
Amortization of acquired technology
|
(16,449
|
)
|
|
(18,338
|
)
|
|
1,889
|
|
|
(10
|
)%
|
|||
Total gross profit
|
$
|
416,872
|
|
|
$
|
324,165
|
|
|
$
|
92,707
|
|
|
29
|
%
|
Gross margin:
|
|
|
|
|
|
|
|
|||||||
Subscription
|
85
|
%
|
|
84
|
%
|
|
|
|
|
|||||
License
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|||||
Service
|
13
|
%
|
|
23
|
%
|
|
|
|
|
|||||
Amortization of acquired technology
|
(100
|
)%
|
|
(100
|
)%
|
|
|
|
|
|||||
Total gross margin
|
76
|
%
|
|
75
|
%
|
|
|
|
|
|
Fiscal Year Ended March 31,
|
|
Change
|
|||||||||||
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
|
(in thousands, except percentages)
|
|||||||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Research and development
|
$
|
119,281
|
|
|
$
|
76,759
|
|
|
$
|
42,522
|
|
|
55
|
%
|
Sales and marketing
|
266,175
|
|
|
178,886
|
|
|
87,289
|
|
|
49
|
%
|
|||
General and administrative
|
161,983
|
|
|
91,778
|
|
|
70,205
|
|
|
76
|
%
|
|||
Amortization of other intangibles
|
40,280
|
|
|
47,686
|
|
|
(7,406
|
)
|
|
(16
|
)%
|
|||
Restructuring and other
|
1,092
|
|
|
1,763
|
|
|
(671
|
)
|
|
(38
|
)%
|
|||
Total operating expenses
|
$
|
588,811
|
|
|
$
|
396,872
|
|
|
$
|
191,939
|
|
|
48
|
%
|
|
Fiscal Year Ended March 31,
|
|
Change
|
|||||||||||
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
|
(in thousands, except percentages)
|
|||||||||||||
Subscription
|
$
|
349,830
|
|
|
$
|
257,576
|
|
|
$
|
92,254
|
|
|
36
|
%
|
License
|
40,354
|
|
|
98,756
|
|
|
(58,402
|
)
|
|
(59
|
)%
|
|||
Service
|
40,782
|
|
|
41,715
|
|
|
(933
|
)
|
|
(2
|
)%
|
|||
Total revenue
|
$
|
430,966
|
|
|
$
|
398,047
|
|
|
$
|
32,919
|
|
|
8
|
%
|
|
Fiscal Year Ended March 31,
|
|
Change
|
|||||||||||
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
|
(in thousands, except percentages)
|
|||||||||||||
Cost of subscription
|
$
|
56,934
|
|
|
$
|
48,270
|
|
|
$
|
8,664
|
|
|
18
|
%
|
Cost of service
|
31,529
|
|
|
30,316
|
|
|
1,213
|
|
|
4
|
%
|
|||
Amortization of acquired technology
|
18,338
|
|
|
17,948
|
|
|
390
|
|
|
2
|
%
|
|||
Total cost of revenue
|
$
|
106,801
|
|
|
$
|
96,534
|
|
|
$
|
10,267
|
|
|
11
|
%
|
|
Fiscal Year Ended March 31,
|
|
Change
|
|||||||||||
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
|
(in thousands, except percentages)
|
|||||||||||||
Gross profit:
|
|
|
|
|
|
|
|
|||||||
Subscription
|
$
|
292,896
|
|
|
$
|
209,306
|
|
|
$
|
83,590
|
|
|
40
|
%
|
License
|
40,354
|
|
|
98,756
|
|
|
(58,402
|
)
|
|
(59
|
)%
|
|||
Service
|
9,253
|
|
|
11,399
|
|
|
(2,146
|
)
|
|
(19
|
)%
|
|||
Amortization of acquired technology
|
(18,338
|
)
|
|
(17,948
|
)
|
|
(390
|
)
|
|
2
|
%
|
|||
Total gross profit
|
$
|
324,165
|
|
|
$
|
301,513
|
|
|
$
|
22,652
|
|
|
8
|
%
|
Gross margin:
|
|
|
|
|
|
|
|
|||||||
Subscription
|
84
|
%
|
|
81
|
%
|
|
|
|
|
|||||
License
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|||||
Service
|
23
|
%
|
|
27
|
%
|
|
|
|
|
|||||
Amortization of acquired technology
|
(100
|
)%
|
|
(100
|
)%
|
|
|
|
|
|||||
Total gross margin
|
75
|
%
|
|
76
|
%
|
|
|
|
|
|
Fiscal Year Ended March 31,
|
|
Change
|
|||||||||||
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
|
(in thousands, except percentages)
|
|||||||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Research and development
|
$
|
76,759
|
|
|
$
|
58,320
|
|
|
$
|
18,439
|
|
|
32
|
%
|
Sales and marketing
|
178,886
|
|
|
145,350
|
|
|
33,536
|
|
|
23
|
%
|
|||
General and administrative
|
91,778
|
|
|
64,114
|
|
|
27,664
|
|
|
43
|
%
|
|||
Amortization of other intangibles
|
47,686
|
|
|
50,498
|
|
|
(2,812
|
)
|
|
(6
|
)%
|
|||
Restructuring and other
|
1,763
|
|
|
4,990
|
|
|
(3,227
|
)
|
|
(65
|
)%
|
|||
Total operating expenses
|
$
|
396,872
|
|
|
$
|
323,272
|
|
|
$
|
73,600
|
|
|
23
|
%
|
|
Fiscal Quarter Ended
|
||||||||||||||||||||||||||||||
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
6/30/2018
|
||||||||||||||||
|
(in thousands, except per share data)
|
||||||||||||||||||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Subscription
|
$
|
135,366
|
|
|
$
|
128,518
|
|
|
$
|
115,805
|
|
|
$
|
108,128
|
|
|
$
|
97,856
|
|
|
$
|
91,661
|
|
|
$
|
82,389
|
|
|
$
|
77,924
|
|
License
|
2,262
|
|
|
3,895
|
|
|
2,745
|
|
|
3,784
|
|
|
7,549
|
|
|
12,064
|
|
|
9,662
|
|
|
11,079
|
|
||||||||
Service
|
12,949
|
|
|
10,885
|
|
|
10,828
|
|
|
10,638
|
|
|
10,763
|
|
|
10,965
|
|
|
9,836
|
|
|
9,218
|
|
||||||||
Total revenue
|
150,577
|
|
|
143,298
|
|
|
129,378
|
|
|
122,550
|
|
|
116,168
|
|
|
114,690
|
|
|
101,887
|
|
|
98,221
|
|
||||||||
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cost of subscription
|
17,263
|
|
|
16,297
|
|
|
23,456
|
|
|
16,177
|
|
|
16,012
|
|
|
13,534
|
|
|
14,256
|
|
|
13,132
|
|
||||||||
Cost of service
|
10,049
|
|
|
8,584
|
|
|
11,847
|
|
|
8,809
|
|
|
9,381
|
|
|
7,731
|
|
|
7,522
|
|
|
6,895
|
|
||||||||
Amortization of acquired technology
|
3,825
|
|
|
3,824
|
|
|
4,243
|
|
|
4,557
|
|
|
4,558
|
|
|
4,558
|
|
|
4,558
|
|
|
4,664
|
|
||||||||
Total cost of revenue (1)
|
31,137
|
|
|
28,705
|
|
|
39,546
|
|
|
29,543
|
|
|
29,951
|
|
|
25,823
|
|
|
26,336
|
|
|
24,691
|
|
||||||||
Gross profit
|
119,440
|
|
|
114,593
|
|
|
89,832
|
|
|
93,007
|
|
|
86,217
|
|
|
88,867
|
|
|
75,551
|
|
|
73,530
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Research and development (1)
|
24,509
|
|
|
22,517
|
|
|
46,596
|
|
|
25,659
|
|
|
21,530
|
|
|
17,643
|
|
|
19,690
|
|
|
17,896
|
|
||||||||
Sales and marketing (1)
|
55,594
|
|
|
52,400
|
|
|
99,966
|
|
|
58,215
|
|
|
48,219
|
|
|
43,275
|
|
|
44,883
|
|
|
42,509
|
|
||||||||
General and administrative (1)
|
21,265
|
|
|
21,883
|
|
|
86,953
|
|
|
31,882
|
|
|
27,014
|
|
|
19,672
|
|
|
25,211
|
|
|
19,881
|
|
||||||||
Amortization of other intangibles
|
10,038
|
|
|
10,039
|
|
|
10,061
|
|
|
10,142
|
|
|
11,794
|
|
|
11,879
|
|
|
11,964
|
|
|
12,049
|
|
||||||||
Restructuring and other
|
(1
|
)
|
|
199
|
|
|
779
|
|
|
115
|
|
|
1,304
|
|
|
(24
|
)
|
|
73
|
|
|
410
|
|
||||||||
Total operating expenses
|
111,405
|
|
|
107,038
|
|
|
244,355
|
|
|
126,013
|
|
|
109,861
|
|
|
92,445
|
|
|
101,821
|
|
|
92,745
|
|
||||||||
Income (loss) from operations
|
8,035
|
|
|
7,555
|
|
|
(154,523
|
)
|
|
(33,006
|
)
|
|
(23,644
|
)
|
|
(3,578
|
)
|
|
(26,270
|
)
|
|
(19,215
|
)
|
||||||||
Other expense, net
|
(7,186
|
)
|
|
(5,928
|
)
|
|
(14,388
|
)
|
|
(19,092
|
)
|
|
(20,240
|
)
|
|
(21,206
|
)
|
|
(17,934
|
)
|
|
(7,824
|
)
|
||||||||
Income (loss) before income taxes
|
849
|
|
|
1,627
|
|
|
(168,911
|
)
|
|
(52,098
|
)
|
|
(43,884
|
)
|
|
(24,784
|
)
|
|
(44,204
|
)
|
|
(27,039
|
)
|
||||||||
Income tax benefit (expense)
|
45,853
|
|
|
136
|
|
|
(248,423
|
)
|
|
2,943
|
|
|
13,286
|
|
|
2,682
|
|
|
4,266
|
|
|
3,483
|
|
||||||||
Net income (loss)
|
$
|
46,702
|
|
|
$
|
1,763
|
|
|
$
|
(417,334
|
)
|
|
$
|
(49,155
|
)
|
|
$
|
(30,598
|
)
|
|
$
|
(22,102
|
)
|
|
$
|
(39,938
|
)
|
|
$
|
(23,556
|
)
|
Net income (loss) per share, basic (2)
|
$
|
0.17
|
|
|
$
|
0.01
|
|
|
$
|
(1.58
|
)
|
|
$
|
(0.21
|
)
|
|
$
|
(0.13
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
(0.10
|
)
|
Net income (loss) per share, diluted (2)
|
$
|
0.16
|
|
|
$
|
0.01
|
|
|
$
|
(1.58
|
)
|
|
$
|
(0.21
|
)
|
|
$
|
(0.13
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
(0.10
|
)
|
Weighted average shares outstanding, basic (2)
|
278,665
|
|
|
277,926
|
|
|
264,127
|
|
|
237,693
|
|
|
236,667
|
|
|
236,024
|
|
|
235,215
|
|
|
233,971
|
|
||||||||
Weighted average shares outstanding, diluted (2)
|
283,302
|
|
|
280,156
|
|
|
264,127
|
|
|
237,693
|
|
|
236,667
|
|
|
236,024
|
|
|
235,215
|
|
|
233,971
|
|
(1)
|
Includes share-based compensation expense as follows:
|
|
Fiscal Quarter Ended
|
||||||||||||||||||||||||||||||
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
6/30/2018
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Cost of revenue
|
$
|
1,339
|
|
|
$
|
1,317
|
|
|
$
|
12,720
|
|
|
$
|
3,309
|
|
|
$
|
2,311
|
|
|
$
|
476
|
|
|
$
|
1,906
|
|
|
$
|
1,084
|
|
Research and development
|
1,991
|
|
|
2,173
|
|
|
27,379
|
|
|
7,127
|
|
|
4,976
|
|
|
1,009
|
|
|
4,163
|
|
|
2,418
|
|
||||||||
Sales and marketing
|
6,106
|
|
|
6,707
|
|
|
56,781
|
|
|
15,104
|
|
|
10,033
|
|
|
2,179
|
|
|
7,998
|
|
|
4,463
|
|
||||||||
General and administrative
|
3,358
|
|
|
3,316
|
|
|
57,866
|
|
|
15,885
|
|
|
11,546
|
|
|
2,393
|
|
|
8,963
|
|
|
5,233
|
|
||||||||
Total share-based compensation
|
$
|
12,794
|
|
|
$
|
13,513
|
|
|
$
|
154,746
|
|
|
$
|
41,425
|
|
|
$
|
28,866
|
|
|
$
|
6,057
|
|
|
$
|
23,030
|
|
|
$
|
13,198
|
|
(2)
|
See Note 15 to our consolidated financial statements included in this Annual Report for further details on the calculation of basic and diluted net income (loss) per share.
|
(1)
|
Includes share-based compensation expense as follows:
|
|
Fiscal Quarter Ended
|
||||||||||||||||||||||
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
6/30/2018
|
|||||||||
(as a % of revenue)
|
|||||||||||||||||||||||
Cost of revenue
|
0.9
|
%
|
|
0.9
|
%
|
|
9.8
|
%
|
|
2.7
|
%
|
|
2.0
|
%
|
|
0.4
|
%
|
|
1.9
|
%
|
|
1.1
|
%
|
Research and development
|
1.3
|
|
|
1.5
|
|
|
21.2
|
|
|
5.8
|
|
|
4.3
|
|
|
0.9
|
|
|
4.1
|
|
|
2.5
|
|
Sales and marketing
|
4.1
|
|
|
4.7
|
|
|
43.9
|
|
|
12.3
|
|
|
8.6
|
|
|
1.9
|
|
|
7.8
|
|
|
4.5
|
|
General and administrative
|
2.2
|
|
|
2.3
|
|
|
44.7
|
|
|
13.0
|
|
|
9.9
|
|
|
2.1
|
|
|
8.8
|
|
|
5.3
|
|
Total share-based compensation
|
8.5
|
%
|
|
9.4
|
%
|
|
119.6
|
%
|
|
33.8
|
%
|
|
24.8
|
%
|
|
5.3
|
%
|
|
22.6
|
%
|
|
13.4
|
%
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2020
|
|
2019
|
|
2018
|
||||||
|
|
(in thousands)
|
||||||||||
Net cash (used in) provided by operating activities(1)
|
|
$
|
(142,455
|
)
|
|
$
|
147,141
|
|
|
$
|
118,838
|
|
Net cash used in investing activities
|
|
(20,613
|
)
|
|
(9,250
|
)
|
|
(26,531
|
)
|
|||
Net cash provided by (used in) financing activities
|
|
329,392
|
|
|
(161,482
|
)
|
|
(75,501
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(4,468
|
)
|
|
(2,676
|
)
|
|
2,827
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
$
|
161,856
|
|
|
$
|
(26,267
|
)
|
|
$
|
19,633
|
|
(1)
|
Net cash (used in) provided by operating activities includes cash payments for interest and tax as follows:
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2020
|
|
2019
|
|
2018
|
||||||
|
|
(in thousands)
|
||||||||||
Cash paid for interest
|
|
$
|
39,568
|
|
|
$
|
40,969
|
|
|
$
|
38
|
|
Cash paid for tax
|
|
$
|
266,708
|
|
|
$
|
5,928
|
|
|
$
|
12,906
|
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
Less than
1 Year
|
|
1 to 3 Years
|
|
3 to 5 Years
|
|
More than
5 Years
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Operating lease obligations
|
$
|
72,323
|
|
|
$
|
14,210
|
|
|
$
|
22,898
|
|
|
$
|
18,884
|
|
|
$
|
16,331
|
|
First Lien Term Loan - principal (1)
|
521,125
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
521,125
|
|
|||||
First Lien Term Loan - interest (2)
|
92,377
|
|
|
17,116
|
|
|
34,231
|
|
|
34,278
|
|
|
6,752
|
|
|||||
Revolving credit facility (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
685,825
|
|
|
$
|
31,326
|
|
|
$
|
57,129
|
|
|
$
|
53,162
|
|
|
$
|
544,208
|
|
(1)
|
The amounts included in the table above represent principal maturities only.
|
(2)
|
Amounts represent estimated future interest payments on borrowings under our First Lien Term Loan, which were estimated using the interest rate effective at March 31, 2020 multiplied by the principal outstanding on March 31, 2020. The First Lien Term Loan consists of $521.1 million currently bearing interest at 3.2%.
|
(3)
|
As of March 31, 2020, we had no outstanding borrowings under our revolving credit facility, $15.3 million of letters of credit outstanding, and $44.7 million was available for borrowing under our revolving credit facility.
|
•
|
independent third-party valuations of our equity units;
|
•
|
the rights, preferences and privileges of each class of our equity units;
|
•
|
our financial condition, results of operations and capital resources;
|
•
|
the industry outlook;
|
•
|
the valuation of comparable companies;
|
•
|
the lack of marketability of our equity units;
|
•
|
the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given prevailing market conditions;
|
•
|
the history and nature of our business, industry trends and competitive environment; and
|
•
|
general economic outlook including economic growth, inflation and unemployment, interest rate environment and global economic trends.
|
|
March 31, 2020
|
Expected volatility
|
37.1% - 38.9%
|
Expected term (years)
|
6.1
|
Risk-free interest rate
|
0.8% - 1.9%
|
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
213,170
|
|
|
$
|
51,314
|
|
Accounts receivable, net of allowance for doubtful accounts
|
157,058
|
|
|
115,431
|
|
||
Deferred commissions, current
|
38,509
|
|
|
27,705
|
|
||
Prepaid expenses and other current assets
|
61,188
|
|
|
18,768
|
|
||
Total current assets
|
469,925
|
|
|
213,218
|
|
||
Property and equipment, net
|
31,508
|
|
|
17,925
|
|
||
Goodwill
|
1,270,733
|
|
|
1,270,120
|
|
||
Other intangible assets, net
|
201,592
|
|
|
259,123
|
|
||
Deferred tax assets, net
|
20,460
|
|
|
10,678
|
|
||
Deferred commissions, non-current
|
39,736
|
|
|
31,545
|
|
||
Other assets
|
8,126
|
|
|
8,757
|
|
||
Total assets
|
$
|
2,042,080
|
|
|
$
|
1,811,366
|
|
|
|
|
|
||||
Liabilities and shareholders' equity / member's deficit
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
11,112
|
|
|
$
|
6,559
|
|
Accrued expenses, current
|
93,728
|
|
|
64,920
|
|
||
Current portion of long-term debt
|
—
|
|
|
9,500
|
|
||
Deferred revenue, current
|
384,060
|
|
|
272,772
|
|
||
Payable to related party
|
—
|
|
|
597,150
|
|
||
Total current liabilities
|
488,900
|
|
|
950,901
|
|
||
Deferred revenue, non-current
|
60,711
|
|
|
92,973
|
|
||
Accrued expenses, non-current
|
20,987
|
|
|
98,359
|
|
||
Deferred tax liabilities
|
—
|
|
|
47,598
|
|
||
Long-term debt, net of current portion
|
509,985
|
|
|
1,011,793
|
|
||
Total liabilities
|
1,080,583
|
|
|
2,201,624
|
|
||
Commitments and contingencies (Note 12)
|
|
|
|
||||
Shareholders' equity / member's deficit:
|
|
|
|
||||
Common shares, $0.001 par value, 600,000,000 shares authorized, 280,853,040 shares issued and outstanding at March 31, 2020
|
281
|
|
|
—
|
|
||
Common units, no par value, 100 units authorized, issued and outstanding at March 31, 2019
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
1,573,347
|
|
|
(184,546
|
)
|
||
Accumulated deficit
|
(594,026
|
)
|
|
(176,002
|
)
|
||
Accumulated other comprehensive loss
|
(18,105
|
)
|
|
(29,710
|
)
|
||
Total shareholders' equity / member's deficit
|
961,497
|
|
|
(390,258
|
)
|
||
Total liabilities and shareholders' equity / member's deficit
|
$
|
2,042,080
|
|
|
$
|
1,811,366
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2020
|
|
2019
|
|
2018
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Subscription
|
$
|
487,817
|
|
|
$
|
349,830
|
|
|
$
|
257,576
|
|
License
|
12,686
|
|
|
40,354
|
|
|
98,756
|
|
|||
Service
|
45,300
|
|
|
40,782
|
|
|
41,715
|
|
|||
Total revenue
|
545,803
|
|
|
430,966
|
|
|
398,047
|
|
|||
Cost of revenue:
|
|
|
|
|
|
||||||
Cost of subscription
|
73,193
|
|
|
56,934
|
|
|
48,270
|
|
|||
Cost of service
|
39,289
|
|
|
31,529
|
|
|
30,316
|
|
|||
Amortization of acquired technology
|
16,449
|
|
|
18,338
|
|
|
17,948
|
|
|||
Total cost of revenue
|
128,931
|
|
|
106,801
|
|
|
96,534
|
|
|||
Gross profit
|
416,872
|
|
|
324,165
|
|
|
301,513
|
|
|||
|
|
|
|
|
|
||||||
Operating expenses:
|
|
|
|
|
|
||||||
Research and development
|
119,281
|
|
|
76,759
|
|
|
58,320
|
|
|||
Sales and marketing
|
266,175
|
|
|
178,886
|
|
|
145,350
|
|
|||
General and administrative
|
161,983
|
|
|
91,778
|
|
|
64,114
|
|
|||
Amortization of other intangibles
|
40,280
|
|
|
47,686
|
|
|
50,498
|
|
|||
Restructuring and other
|
1,092
|
|
|
1,763
|
|
|
4,990
|
|
|||
Total operating expenses
|
588,811
|
|
|
396,872
|
|
|
323,272
|
|
|||
Loss from operations
|
(171,939
|
)
|
|
(72,707
|
)
|
|
(21,759
|
)
|
|||
Interest expense, net
|
(45,397
|
)
|
|
(69,845
|
)
|
|
(35,220
|
)
|
|||
Other (expense) income, net
|
(1,197
|
)
|
|
2,641
|
|
|
5,204
|
|
|||
Loss before income taxes
|
(218,533
|
)
|
|
(139,911
|
)
|
|
(51,775
|
)
|
|||
Income tax (expense) benefit
|
(199,491
|
)
|
|
23,717
|
|
|
60,997
|
|
|||
Net (loss) income
|
$
|
(418,024
|
)
|
|
$
|
(116,194
|
)
|
|
$
|
9,222
|
|
Net (loss) income per share:
|
|
|
|
|
|
||||||
Basic and diluted
|
$
|
(1.58
|
)
|
|
$
|
(0.49
|
)
|
|
$
|
0.04
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic and diluted
|
264,933
|
|
|
235,939
|
|
|
231,956
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2020
|
|
2019
|
|
2018
|
||||||
Net (loss) income
|
$
|
(418,024
|
)
|
|
$
|
(116,194
|
)
|
|
$
|
9,222
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
4,982
|
|
|
(3,912
|
)
|
|
(8,680
|
)
|
|||
Effect of reorganization
|
6,623
|
|
|
—
|
|
|
—
|
|
|||
Total other comprehensive income (loss)
|
11,605
|
|
|
(3,912
|
)
|
|
(8,680
|
)
|
|||
Comprehensive (loss) income
|
$
|
(406,419
|
)
|
|
$
|
(120,106
|
)
|
|
$
|
542
|
|
|
Common Shares
|
|
Additional
Paid-In Capital
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Shareholders’ Equity / Member’s Deficit
|
|||||||||||||
Shares
|
|
Amount
|
|
|||||||||||||||||||
Balance, March 31, 2017
|
—
|
|
|
$
|
—
|
|
|
$
|
(178,358
|
)
|
|
$
|
(69,030
|
)
|
|
$
|
(17,118
|
)
|
|
$
|
(264,506
|
)
|
Foreign currency translation, net of tax
|
|
|
|
|
|
|
|
|
(8,680
|
)
|
|
(8,680
|
)
|
|||||||||
Transfers to related parties
|
|
|
|
|
(3,920
|
)
|
|
|
|
|
|
(3,920
|
)
|
|||||||||
Equity repurchases
|
|
|
|
|
(806
|
)
|
|
|
|
|
|
(806
|
)
|
|||||||||
Net income
|
|
|
|
|
|
|
9,222
|
|
|
|
|
9,222
|
|
|||||||||
Balance, March 31, 2018
|
—
|
|
|
$
|
—
|
|
|
$
|
(183,084
|
)
|
|
$
|
(59,808
|
)
|
|
$
|
(25,798
|
)
|
|
$
|
(268,690
|
)
|
Foreign currency translation, net of tax
|
|
|
|
|
|
|
|
|
(3,912
|
)
|
|
(3,912
|
)
|
|||||||||
Transfers to related parties
|
|
|
|
|
(813
|
)
|
|
|
|
|
|
(813
|
)
|
|||||||||
Equity repurchases
|
|
|
|
|
(649
|
)
|
|
|
|
|
|
(649
|
)
|
|||||||||
Net loss
|
|
|
|
|
|
|
(116,194
|
)
|
|
|
|
(116,194
|
)
|
|||||||||
Balance, March 31, 2019
|
—
|
|
|
$
|
—
|
|
|
$
|
(184,546
|
)
|
|
$
|
(176,002
|
)
|
|
$
|
(29,710
|
)
|
|
$
|
(390,258
|
)
|
Foreign currency translation, net of tax
|
|
|
|
|
|
|
|
|
4,982
|
|
|
4,982
|
|
|||||||||
Reclassification of related party payable upon reorganization
|
|
|
|
|
600,622
|
|
|
|
|
|
|
600,622
|
|
|||||||||
Issuance of common stock in connection with initial public offering, net of underwriters' discounts and commissions and issuance costs
|
38,873
|
|
|
39
|
|
|
585,258
|
|
|
|
|
|
|
585,297
|
|
|||||||
Effect of reorganization
|
241,547
|
|
|
242
|
|
|
271,383
|
|
|
|
|
|
6,623
|
|
|
278,248
|
|
|||||
Contribution for taxes associated with reorganization
|
|
|
|
|
265,000
|
|
|
|
|
|
|
265,000
|
|
|||||||||
Restricted stock units vested
|
503
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
||||||||
Restricted stock awards forfeited
|
(70
|
)
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
||||||||
Share-based compensation
|
|
|
|
|
35,786
|
|
|
|
|
|
|
35,786
|
|
|||||||||
Equity repurchases
|
|
|
|
|
(156
|
)
|
|
|
|
|
|
(156
|
)
|
|||||||||
Net loss
|
|
|
|
|
|
|
(418,024
|
)
|
|
|
|
(418,024
|
)
|
|||||||||
Balance, March 31, 2020
|
280,853
|
|
|
$
|
281
|
|
|
$
|
1,573,347
|
|
|
$
|
(594,026
|
)
|
|
$
|
(18,105
|
)
|
|
$
|
961,497
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2020
|
|
2019
|
|
2018
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net (loss) income
|
$
|
(418,024
|
)
|
|
$
|
(116,194
|
)
|
|
$
|
9,222
|
|
Adjustments to reconcile net (loss) income to cash (used in) provided by operations:
|
|
|
|
|
|
||||||
Depreciation
|
7,864
|
|
|
7,319
|
|
|
8,783
|
|
|||
Amortization
|
58,457
|
|
|
72,792
|
|
|
73,455
|
|
|||
Share-based compensation
|
222,478
|
|
|
71,151
|
|
|
22,294
|
|
|||
Deferred income taxes
|
(59,276
|
)
|
|
(34,214
|
)
|
|
(73,196
|
)
|
|||
Other
|
6,129
|
|
|
(1,140
|
)
|
|
400
|
|
|||
Net change in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(44,021
|
)
|
|
17,979
|
|
|
(14,727
|
)
|
|||
Deferred commissions
|
(20,107
|
)
|
|
(19,968
|
)
|
|
(14,062
|
)
|
|||
Prepaid expenses and other assets
|
(39,737
|
)
|
|
(12,401
|
)
|
|
1,996
|
|
|||
Accounts payable and accrued expenses
|
52,415
|
|
|
34,787
|
|
|
26,797
|
|
|||
Deferred revenue
|
91,367
|
|
|
127,030
|
|
|
77,876
|
|
|||
Net cash (used in) provided by operating activities
|
(142,455
|
)
|
|
147,141
|
|
|
118,838
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchase of property and equipment
|
(19,721
|
)
|
|
(7,377
|
)
|
|
(11,606
|
)
|
|||
Capitalized software additions
|
(892
|
)
|
|
(1,873
|
)
|
|
(3,623
|
)
|
|||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(11,302
|
)
|
|||
Net cash used in investing activities
|
(20,613
|
)
|
|
(9,250
|
)
|
|
(26,531
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from initial public offering, net of underwriters' discounts and commissions
|
590,297
|
|
|
—
|
|
|
—
|
|
|||
Offering costs
|
(5,000
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from term loans
|
—
|
|
|
1,120,000
|
|
|
—
|
|
|||
Debt issuance costs
|
(866
|
)
|
|
(16,288
|
)
|
|
—
|
|
|||
Repayment of term loans
|
(515,189
|
)
|
|
(83,871
|
)
|
|
—
|
|
|||
Payments to related parties
|
—
|
|
|
(1,177,021
|
)
|
|
(74,616
|
)
|
|||
Contribution for tax associated with reorganization
|
265,000
|
|
|
—
|
|
|
—
|
|
|||
Equity repurchases
|
(156
|
)
|
|
(649
|
)
|
|
(885
|
)
|
|||
Installments related to acquisitions
|
(4,694
|
)
|
|
(3,653
|
)
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
329,392
|
|
|
(161,482
|
)
|
|
(75,501
|
)
|
|||
|
|
|
|
|
|
||||||
Effect of exchange rates on cash and cash equivalents
|
(4,468
|
)
|
|
(2,676
|
)
|
|
2,827
|
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
161,856
|
|
|
(26,267
|
)
|
|
19,633
|
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents, beginning of year
|
51,314
|
|
|
77,581
|
|
|
57,948
|
|
|||
Cash and cash equivalents, end of year
|
$
|
213,170
|
|
|
$
|
51,314
|
|
|
$
|
77,581
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow data:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
39,568
|
|
|
$
|
40,969
|
|
|
$
|
38
|
|
Cash paid for tax, net
|
$
|
266,708
|
|
|
$
|
5,928
|
|
|
$
|
12,906
|
|
Noncash investing and financing activities:
|
|
|
|
|
|
||||||
Installments due related to acquisition
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,488
|
|
Reclassification of related party payable upon reorganization
|
$
|
600,622
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Transactions with related parties
|
$
|
—
|
|
|
$
|
14,263
|
|
|
$
|
35,168
|
|
Modification of MIU Plan awards
|
$
|
278,248
|
|
|
$
|
—
|
|
|
$
|
—
|
|
1.
|
Identification of the contract, or contracts, with a customer
|
2.
|
Identification of the performance obligations in the contract
|
3.
|
Determination of the transaction price
|
4.
|
Allocation of the transaction price to the performance obligations in the contract
|
5.
|
Recognition of revenue when, or as a performance obligation is satisfied
|
Computer equipment and software
|
3 - 5 years
|
Furniture and fixtures
|
5 - 10 years
|
Leasehold improvements
|
Shorter of the useful life of the asset or the lease term
|
•
|
Level 1: Observable inputs that reflect quoted prices for identical assets or liabilities in active markets;
|
•
|
Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
|
•
|
Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
|
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
|
|
2020
|
|
2019
|
|
2018
|
|||||||||||||||
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||||
North America
|
|
$
|
318,299
|
|
|
58
|
%
|
|
$
|
248,012
|
|
|
57
|
%
|
|
$
|
232,521
|
|
|
58
|
%
|
Europe, Middle East and Africa
|
|
150,418
|
|
|
28
|
%
|
|
125,615
|
|
|
29
|
%
|
|
111,295
|
|
|
28
|
%
|
|||
Asia Pacific
|
|
60,418
|
|
|
11
|
%
|
|
45,563
|
|
|
11
|
%
|
|
39,275
|
|
|
10
|
%
|
|||
Latin America
|
|
16,668
|
|
|
3
|
%
|
|
11,776
|
|
|
3
|
%
|
|
14,956
|
|
|
4
|
%
|
|||
Total revenue
|
|
$
|
545,803
|
|
|
|
|
$
|
430,966
|
|
|
|
|
$
|
398,047
|
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2020
|
|
2019
|
|
2018
|
||||||
Beginning balance
|
$
|
59,250
|
|
|
$
|
39,282
|
|
|
$
|
25,219
|
|
Additions to deferred commissions
|
54,969
|
|
|
43,212
|
|
|
30,835
|
|
|||
Amortization of deferred commissions
|
(35,974
|
)
|
|
(23,244
|
)
|
|
(16,772
|
)
|
|||
Ending Balance
|
$
|
78,245
|
|
|
$
|
59,250
|
|
|
$
|
39,282
|
|
Deferred commissions, current
|
38,509
|
|
|
27,705
|
|
|
18,763
|
|
|||
Deferred commissions, non-current
|
39,736
|
|
|
31,545
|
|
|
20,519
|
|
|||
Total deferred commissions
|
$
|
78,245
|
|
|
$
|
59,250
|
|
|
$
|
39,282
|
|
|
March 31,
|
||||||
2020
|
|
2019
|
|||||
Prepaid expenses
|
$
|
13,189
|
|
|
$
|
13,334
|
|
Income taxes refundable
|
47,489
|
|
|
4,078
|
|
||
Other
|
510
|
|
|
1,356
|
|
||
Prepaid expenses and other current assets
|
$
|
61,188
|
|
|
$
|
18,768
|
|
|
March 31,
|
||||||
2020
|
|
2019
|
|||||
Computer equipment and software
|
$
|
19,550
|
|
|
$
|
37,745
|
|
Furniture and fixtures
|
7,679
|
|
|
6,701
|
|
||
Leasehold improvements
|
21,562
|
|
|
11,741
|
|
||
Other
|
3,111
|
|
|
1,260
|
|
||
Total property and equipment
|
51,902
|
|
|
57,447
|
|
||
Less: accumulated depreciation and amortization
|
(20,394
|
)
|
|
(39,522
|
)
|
||
Property and equipment, net
|
$
|
31,508
|
|
|
$
|
17,925
|
|
|
March 31, 2020
|
||
Balance, beginning of year
|
$
|
1,270,120
|
|
Foreign currency impact
|
613
|
|
|
Balance, end of year
|
$
|
1,270,733
|
|
|
Weighted
Average Useful
Life
(in months)
|
|
March 31,
|
||||||
2020
|
|
2019
|
|||||||
Capitalized software
|
107
|
|
$
|
189,554
|
|
|
$
|
188,608
|
|
Customer relationships
|
120
|
|
351,555
|
|
|
351,555
|
|
||
Trademarks and tradenames
|
120
|
|
55,003
|
|
|
55,003
|
|
||
Total intangible assets
|
|
|
596,112
|
|
|
595,166
|
|
||
Less: accumulated amortization
|
|
|
(394,520
|
)
|
|
(336,043
|
)
|
||
Total other intangible assets, net
|
|
|
$
|
201,592
|
|
|
$
|
259,123
|
|
|
Fiscal Year Ended March 31,
|
||||||||||||||||||
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
||||||||||
Capitalized software
|
$
|
17,195
|
|
|
$
|
15,938
|
|
|
$
|
15,584
|
|
|
$
|
15,277
|
|
|
$
|
10,621
|
|
Customer relationships
|
29,243
|
|
|
24,660
|
|
|
20,794
|
|
|
17,534
|
|
|
10,473
|
|
|||||
Trademarks and tradenames
|
5,501
|
|
|
5,501
|
|
|
5,501
|
|
|
4,753
|
|
|
3,017
|
|
|||||
Total amortization
|
$
|
51,939
|
|
|
$
|
46,099
|
|
|
$
|
41,879
|
|
|
$
|
37,564
|
|
|
$
|
24,111
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
2020
|
|
2019
|
|
2018
|
|||||||
Domestic
|
$
|
(245,177
|
)
|
|
$
|
(163,385
|
)
|
|
$
|
(64,391
|
)
|
Foreign
|
26,644
|
|
|
23,474
|
|
|
12,616
|
|
|||
Total
|
$
|
(218,533
|
)
|
|
$
|
(139,911
|
)
|
|
$
|
(51,775
|
)
|
|
Fiscal Year Ended March 31,
|
||||||||||
2020
|
|
2019
|
|
2018
|
|||||||
Income tax expense (benefit)
|
|
|
|
|
|
||||||
Federal
|
$
|
198,307
|
|
|
$
|
3,213
|
|
|
$
|
(393
|
)
|
State
|
47,992
|
|
|
575
|
|
|
1,198
|
|
|||
Foreign
|
12,468
|
|
|
5,920
|
|
|
11,638
|
|
|||
Total current tax position
|
258,767
|
|
|
9,708
|
|
|
12,443
|
|
|||
Federal
|
(50,086
|
)
|
|
(29,021
|
)
|
|
(72,336
|
)
|
|||
State
|
(5,839
|
)
|
|
(5,464
|
)
|
|
(990
|
)
|
|||
Foreign
|
(3,351
|
)
|
|
1,060
|
|
|
(114
|
)
|
|||
Total deferred tax provision
|
(59,276
|
)
|
|
(33,425
|
)
|
|
(73,440
|
)
|
|||
Total income tax expense (benefit)
|
$
|
199,491
|
|
|
$
|
(23,717
|
)
|
|
$
|
(60,997
|
)
|
|
Fiscal Year Ended March 31,
|
||||||||||
2020
|
|
2019
|
|
2018
|
|||||||
Income tax (benefit) at U.S. federal statutory income tax rate
|
$
|
(45,892
|
)
|
|
$
|
(29,381
|
)
|
|
$
|
(16,309
|
)
|
State and local tax expense
|
(3,100
|
)
|
|
(4,890
|
)
|
|
208
|
|
|||
Foreign tax rate differential
|
3,521
|
|
|
2,051
|
|
|
3,619
|
|
|||
Branch income
|
1,601
|
|
|
1,824
|
|
|
384
|
|
|||
Non-deductible expenses
|
35,874
|
|
|
11,807
|
|
|
8,645
|
|
|||
Tax credits
|
(35,354
|
)
|
|
(13,233
|
)
|
|
(6,173
|
)
|
|||
Sharing of consolidated tax attributes
|
—
|
|
|
—
|
|
|
(8,890
|
)
|
|||
Foreign derived intangibles deduction
|
(3,901
|
)
|
|
(1,790
|
)
|
|
—
|
|
|||
Tax associated with reorganization
|
251,819
|
|
|
—
|
|
|
—
|
|
|||
Changes in tax law
|
—
|
|
|
—
|
|
|
(50,033
|
)
|
|||
Changes in valuation allowance
|
(9,682
|
)
|
|
6,087
|
|
|
5,133
|
|
|||
Foreign withholding tax
|
4,231
|
|
|
3,086
|
|
|
2,701
|
|
|||
Other adjustments
|
374
|
|
|
722
|
|
|
(282
|
)
|
|||
Total income tax expense (benefit)
|
$
|
199,491
|
|
|
$
|
(23,717
|
)
|
|
$
|
(60,997
|
)
|
|
March 31,
|
||||||
2020
|
|
2019
|
|||||
Deferred revenue
|
$
|
27,681
|
|
|
$
|
4,752
|
|
Capitalized research and development costs
|
11,140
|
|
|
—
|
|
||
Accrued expenses
|
6,625
|
|
|
5,983
|
|
||
Share-based compensation
|
16,660
|
|
|
4,776
|
|
||
Fixed assets
|
279
|
|
|
447
|
|
||
Net operating loss carryforwards
|
4,046
|
|
|
4,470
|
|
||
Other tax carryforwards, primarily foreign tax credits
|
14,603
|
|
|
32,630
|
|
||
Other
|
2,823
|
|
|
1,183
|
|
||
Total deferred tax assets before valuation allowance
|
83,857
|
|
|
54,241
|
|
||
Less: valuation allowance
|
(21,996
|
)
|
|
(31,678
|
)
|
||
Net deferred tax assets
|
61,861
|
|
|
22,563
|
|
||
Intangible assets
|
40,270
|
|
|
51,531
|
|
||
Capitalized research and development costs
|
—
|
|
|
822
|
|
||
State taxes
|
251
|
|
|
6,090
|
|
||
Other
|
880
|
|
|
1,040
|
|
||
Total deferred tax liabilities
|
41,401
|
|
|
59,483
|
|
||
Net deferred tax assets (liabilities)
|
$
|
20,460
|
|
|
$
|
(36,920
|
)
|
Long-term deferred tax assets
|
20,460
|
|
|
10,678
|
|
||
Long-term deferred tax liabilities
|
—
|
|
|
(47,598
|
)
|
||
Net deferred tax assets (liabilities)
|
$
|
20,460
|
|
|
$
|
(36,920
|
)
|
|
Fiscal Year Ended March 31,
|
|
|
||||||
2020
|
|
2019
|
|
Expiration
|
|||||
Non-U.S. net operating losses
|
$
|
3,726
|
|
|
$
|
4,301
|
|
|
Indefinite
|
Non-U.S. net operating losses
|
159
|
|
|
169
|
|
|
2021 - 2026
|
||
U.S. federal and state tax carryforwards
|
161
|
|
|
2,657
|
|
|
Indefinite
|
||
U.S. federal and state tax carryforwards, primarily foreign tax credits
|
14,603
|
|
|
29,973
|
|
|
2026 - 2027
|
||
Total carryforwards
|
$
|
18,649
|
|
|
$
|
37,100
|
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
2020
|
|
2019
|
|
2018
|
|||||||
Gross unrecognized tax benefit, beginning of year
|
$
|
9,653
|
|
|
$
|
9,143
|
|
|
$
|
8,770
|
|
Gross increases to tax positions for prior periods
|
438
|
|
|
20
|
|
|
257
|
|
|||
Gross decreases to tax positions for prior periods
|
(6,210
|
)
|
|
(70
|
)
|
|
(482
|
)
|
|||
Gross increases to tax positions for current period
|
13,543
|
|
|
560
|
|
|
598
|
|
|||
Gross unrecognized tax benefit, end of year
|
$
|
17,424
|
|
|
$
|
9,653
|
|
|
$
|
9,143
|
|
|
March 31,
|
||||||
2020
|
|
2019
|
|||||
Accrued employee - related expenses
|
$
|
40,687
|
|
|
$
|
35,192
|
|
Accrued tax liabilities
|
13,350
|
|
|
6,274
|
|
||
Accrued restructuring
|
1,065
|
|
|
1,488
|
|
||
Accrued professional fees
|
2,103
|
|
|
3,440
|
|
||
Accrued installments for acquisition
|
—
|
|
|
4,832
|
|
||
Income taxes payable
|
20,756
|
|
|
3,811
|
|
||
Other
|
15,767
|
|
|
9,883
|
|
||
Total accrued expenses, current
|
$
|
93,728
|
|
|
$
|
64,920
|
|
|
March 31,
|
||||||
2020
|
|
2019
|
|||||
Share-based compensation
|
$
|
—
|
|
|
$
|
92,047
|
|
Income tax reserve
|
17,108
|
|
|
2,876
|
|
||
Other
|
3,879
|
|
|
3,436
|
|
||
Total accrued expenses, non-current
|
$
|
20,987
|
|
|
$
|
98,359
|
|
Fiscal year
|
|
Amount
|
||
2021
|
|
$
|
—
|
|
2022
|
|
—
|
|
|
2023
|
|
—
|
|
|
2024
|
|
—
|
|
|
2025
|
|
—
|
|
|
Thereafter
|
|
521,125
|
|
|
Total future payments
|
|
$
|
521,125
|
|
|
Employee
Termination
Benefits
|
|
Lease
Abandonment
Costs
|
|
Total
|
||||||
Balance, March 31, 2018
|
$
|
718
|
|
|
$
|
1,235
|
|
|
$
|
1,953
|
|
Expense
|
1,715
|
|
|
—
|
|
|
1,715
|
|
|||
Utilization
|
(1,557
|
)
|
|
(623
|
)
|
|
(2,180
|
)
|
|||
Balance, March 31, 2019
|
876
|
|
|
612
|
|
|
1,488
|
|
|||
Expense
|
905
|
|
|
—
|
|
|
905
|
|
|||
Utilization
|
(1,076
|
)
|
|
(252
|
)
|
|
(1,328
|
)
|
|||
Balance, March 31, 2020
|
$
|
705
|
|
|
$
|
360
|
|
|
$
|
1,065
|
|
Fiscal year
|
|
Amount
|
||
2021
|
|
$
|
14,210
|
|
2022
|
|
11,663
|
|
|
2023
|
|
11,235
|
|
|
2024
|
|
10,864
|
|
|
2025
|
|
8,020
|
|
|
Thereafter
|
|
16,331
|
|
|
Total future contractual payments
|
|
$
|
72,323
|
|
|
Number of Units
|
|
Weighted
Average
Participation
Threshold
|
|
Fair Value
|
|||||
|
(in thousands)
|
|
(per unit)
|
|
(per unit)
|
|||||
MIUs outstanding as of March 31, 2019
|
24,112
|
|
|
$
|
0.36
|
|
|
$
|
5.45
|
|
Units granted during the year
|
469
|
|
|
7.71
|
|
|
|
|||
Units exchanged for AUs during the year
|
(106
|
)
|
|
1.99
|
|
|
|
|||
Units forfeited/repurchased during the year
|
(3,009
|
)
|
|
0.06
|
|
|
|
|||
Modification of MIU Plan awards
|
(21,466
|
)
|
|
0.56
|
|
|
|
|||
MIUs outstanding as of March 31, 2020
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
MIUs vested as of March 31, 2020
|
—
|
|
|
|
|
|
|
Number of Units
|
|
Weighted
Average
Participation
Threshold
|
|
Fair Value
|
|||||
|
(in thousands)
|
|
(per unit)
|
|
(per unit)
|
|||||
AUs outstanding as of March 31, 2019
|
819
|
|
|
$
|
1.18
|
|
|
$
|
5.45
|
|
Units converted from MIUs
|
106
|
|
|
1.99
|
|
|
|
|||
Units granted during the year
|
53
|
|
|
7.71
|
|
|
|
|||
Units forfeited/repurchased during the year
|
(5
|
)
|
|
1.63
|
|
|
|
|||
Modification of MIU Plan awards
|
(973
|
)
|
|
1.62
|
|
|
|
|||
AUs outstanding as of March 31, 2020
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
AUs vested as of March 31, 2020
|
—
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2018
|
|||
Expected dividend yield
|
—
|
|
|
—
|
|
|
—
|
|
Expected volatility
|
35% - 55%
|
|
|
50% - 60%
|
|
|
50
|
%
|
Expected term (years)
|
0.5 - 1.25
|
|
|
1.0 - 1.5
|
|
|
2.5
|
|
Risk-free interest rate
|
1.86% - 2.09%
|
|
|
2.33% - 2.40%
|
|
|
2.34
|
%
|
|
Number of Options
|
|
Weighted Average
Exercise Price
|
|
Weighted Average Remaining Contractual Term
|
|
Aggregate Intrinsic Value
|
|||||
|
(in thousands)
|
|
(per share)
|
|
(years)
|
|
(in thousands)
|
|||||
Balance, March 31, 2019
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||
Granted
|
7,322
|
|
|
16.26
|
|
|
|
|
|
|||
Exercised
|
—
|
|
|
—
|
|
|
|
|
|
|||
Forfeited
|
(175
|
)
|
|
16.18
|
|
|
|
|
|
|||
Balance, March 31, 2020
|
7,147
|
|
|
$
|
16.26
|
|
|
9.3
|
|
$
|
54,423
|
|
Options vested and expected to vest at March 31, 2020
|
7,147
|
|
|
$
|
16.26
|
|
|
9.3
|
|
$
|
54,423
|
|
Options vested and exercisable at March 31, 2020
|
—
|
|
|
$
|
—
|
|
|
0.0
|
|
$
|
—
|
|
|
March 31, 2020
|
Expected dividend yield
|
—
|
Expected volatility
|
37.1% - 38.9%
|
Expected term (years)
|
6.1
|
Risk-free interest rate
|
0.8% - 1.9%
|
|
Number of Shares of
Restricted Stock Awards
|
|
Weighted Average
Grant Date Fair Value
|
|
Number of Restricted Stock Units
|
|
Weighted Average
Grant Date Fair Value
|
||||||
|
(in thousands)
|
|
(per share)
|
|
(in thousands)
|
|
(per share)
|
||||||
Balance, March 31, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Granted
|
2,855
|
|
|
16.00
|
|
|
3,715
|
|
|
16.33
|
|
||
Vested
|
(784
|
)
|
|
16.00
|
|
|
(503
|
)
|
|
16.00
|
|
||
Forfeited
|
(87
|
)
|
|
16.00
|
|
|
(89
|
)
|
|
16.42
|
|
||
Balance, March 31, 2020
|
1,984
|
|
|
$
|
16.00
|
|
|
3,123
|
|
|
$
|
16.39
|
|
|
March 31, 2020
|
|
Expected dividend yield
|
—
|
|
Expected volatility
|
35.9
|
%
|
Expected term (years)
|
0.5
|
|
Risk-free interest rate
|
1.6
|
%
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2020
|
|
2019
|
|
2018
|
||||||
Cost of revenue
|
$
|
18,685
|
|
|
$
|
5,777
|
|
|
$
|
1,720
|
|
Research and development
|
38,670
|
|
|
12,566
|
|
|
3,858
|
|
|||
Sales and marketing
|
84,698
|
|
|
24,673
|
|
|
7,536
|
|
|||
General and administrative
|
80,425
|
|
|
28,135
|
|
|
9,180
|
|
|||
Total share-based compensation
|
$
|
222,478
|
|
|
$
|
71,151
|
|
|
$
|
22,294
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
2020
|
|
2019
|
|
2018
|
|||||||
Numerator:
|
|
|
|
|
|
||||||
Net (loss) income
|
$
|
(418,024
|
)
|
|
$
|
(116,194
|
)
|
|
$
|
9,222
|
|
Denominator:
|
|
|
|
|
|
||||||
Weighted average shares outstanding, basic and diluted
|
264,933
|
|
|
235,939
|
|
|
231,956
|
|
|||
Net (loss) income per share, basic and diluted
|
$
|
(1.58
|
)
|
|
$
|
(0.49
|
)
|
|
$
|
0.04
|
|
|
Fiscal Year Ended March 31,
|
|||||||
2020
|
|
2019
|
|
2018
|
||||
Stock options
|
4,763
|
|
|
—
|
|
|
—
|
|
Unvested restricted stock and RSUs
|
3,819
|
|
|
—
|
|
|
—
|
|
Shares committed under ESPP
|
64
|
|
|
—
|
|
|
—
|
|
Unvested equity awards
|
—
|
|
|
6,399
|
|
|
10,038
|
|
|
March 31,
|
||||||
2020
|
|
2019
|
|||||
North America
|
$
|
11,296
|
|
|
$
|
10,036
|
|
Europe, Middle East and Africa
|
18,590
|
|
|
7,347
|
|
||
Asia Pacific
|
1,564
|
|
|
376
|
|
||
Latin America
|
58
|
|
|
166
|
|
||
Total property and equipment, net
|
$
|
31,508
|
|
|
$
|
17,925
|
|
1.
|
Financial Statements
|
2.
|
Financial Statement Schedules
|
3.
|
Exhibits
|
Exhibit
Number
|
|
Description
|
3.1
|
|
|
3.2
|
|
|
3.3
|
|
|
3.4
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
10.1#
|
|
|
10.2#
|
|
10.3#
|
|
|
10.4
|
|
|
10.5#
|
|
|
10.6#
|
|
|
10.7#
|
|
|
10.8#
|
|
|
10.9
|
|
|
10.10
|
|
|
10.11
|
|
|
10.12
|
|
|
10.13
|
|
|
10.14
|
|
|
10.15
|
|
|
21.1
|
|
|
23.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1*
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL Document.
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
#
|
Indicates a management contract or any compensatory plan, contract or arrangement.
|
|
|
DYNATRACE, INC.
|
|
|
|
|
|
|
|
|
|
Date:
|
May 27, 2020
|
By:
|
/s/ John Van Siclen
|
|
|
|
|
|
John Van Siclen
|
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
(Principal Executive Officer)
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ John Van Siclen
|
|
Chief Executive Officer and Director
(Principal Executive Officer)
|
|
May 27, 2020
|
John Van Siclen
|
|
|
||
|
|
|
|
|
/s/ Kevin Burns
|
|
Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)
|
|
May 27, 2020
|
Kevin Burns
|
|
|
||
|
|
|
|
|
/s/ Seth Boro
|
|
Director
|
|
May 27, 2020
|
Seth Boro
|
|
|
||
|
|
|
|
|
/s/ Chip Virnig
|
|
Director
|
|
May 27, 2020
|
Chip Virnig
|
|
|
||
|
|
|
|
|
/s/ James K. Lines
|
|
Director
|
|
May 27, 2020
|
James K. Lines
|
|
|
||
|
|
|
|
|
/s/ Paul Zuber
|
|
Director
|
|
May 27, 2020
|
Paul Zuber
|
|
|
||
|
|
|
|
|
/s/ Michael Capone
|
|
Director
|
|
May 27, 2020
|
Michael Capone
|
|
|
||
|
|
|
|
|
/s/ Stephen Lifshatz
|
|
Director
|
|
May 27, 2020
|
Stephen Lifshatz
|
|
|
||
|
|
|
|
|
/s/ Jill Ward
|
|
Director
|
|
May 27, 2020
|
Jill Ward
|
|
|
•
|
before the stockholder became interested, our board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
|
•
|
upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee stock plans, in some instances, but not the outstanding voting stock owned by the interested stockholder; or
|
•
|
at or after the time the stockholder became interested, the business combination was approved by our board of directors and authorized at an annual or special meeting of the stockholders by the
|
•
|
any merger or consolidation involving the corporation and the interested stockholder;
|
•
|
any sale, transfer, lease, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;
|
•
|
subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;
|
•
|
subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; and
|
•
|
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges, or other financial benefits provided by or through the corporation.
|
1.
|
I have reviewed this Annual Report on Form 10-K of Dynatrace, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
a.
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
[paragraph omitted in accordance with Exchange Act Rule 13a-14(a)];
|
c.
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 27, 2020
|
Dynatrace, Inc.
|
|
|
|
|
|
|
|
By:
|
/s/ John Van Siclen
|
|
|
|
John Van Siclen
|
|
|
|
Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of Dynatrace, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
a.
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
[paragraph omitted in accordance with Exchange Act Rule 13a-14(a)];
|
c.
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 27, 2020
|
Dynatrace, Inc.
|
|
|
|
|
|
|
|
By:
|
/s/ Kevin C. Burns
|
|
|
|
Kevin C. Burns
|
|
|
|
Chief Financial Officer & Treasurer
|
|
|
|
(Principal Financial Officer)
|
|
Date: May 27, 2020
|
By:
|
/s/ John Van Siclen
|
|
|
John Van Siclen
|
|
|
Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: May 27, 2020
|
By:
|
/s/ Kevin C. Burns
|
|
|
Kevin C. Burns
|
|
|
Chief Financial Officer & Treasurer
|
|
|
(Principal Financial Officer)
|