For the year ended March 31, 2019, Dynatrace subscription revenue increased by 36% on the growing adoption of the platform by new customers combined with existing customers expanding their use of its solutions. Subscription revenue increased to 81% of total revenue for the year ended March 31, 2019, from 65% of total revenue last year.
At March 31, 2019, the company had about $1 billion of debt and $60 million revolving credit facility. The company has been shedding out about $41 million of cash for interest during the year ended March 31, 2019. Dynatrace has planned to reach out to the public in order to close the debt portion for saving its cash for day-to-day expenses.
Dynatrace expects to continue to rapidly evolve as the software intelligence solutions market is at an early stage of development. Dynatrace customers soared 138% to 1,364 as of March 31, 2019, from 574 as of March 31, 2018. As of March 31, 2019, about 53% of Dynatrace customers added to the platform since April 1, 2017, were new customers, and the balance 47% were existing customers that either added or converted to Dynatrace over the past two years.
The company believes a significant portion of its market opportunity remains unpenetrated now. The company estimates that the annual potential market opportunity for its Dynatrace solution is currently about $18 billion.
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By 2022, spending on digital transformation technology worldwide will reach $1.97 trillion, representing a compound annual growth rate of 16.7% over a five-year period, according to a study by International Data Corporation, or IDC.
The cloud technologies have turned to be the hot topic as enterprises are increasingly adopting it to increase agility and accelerate innovation. By 2020, over 90% of enterprises will use multiple cloud services and platforms, a transition supported by investments to manage resources across platforms, according to IDC.