Categories LATEST, Technology

Cisco-rival Dynatrace files IPO prospectus, to list on NYSE

Software company Dynatrace Holdings LLC looks to go public by raising $300 million in an initial public offering. The company heads to the public for giving stiff competition to Cisco Systems (NASDAQ: CSCO) and Broadcom (NASDAQ: AVGO) in the cloud and application monitoring solutions market.

The Waltham, Massachusetts headquartered company, which applied for listing on the New York Stock Exchange under the “DT” ticker, has hired Goldman Sachs, JPMorgan, and Citigroup as lead underwriters. The proceeds will be used for general corporate purposes, including working capital, operating expenses, and capital expenditures, and to repay a portion of the borrowings outstanding.

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.

Dynatrace files IPO prospectus, to list on NYSE
Photo Courtesy: Dynatrace / Facebook post

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.

Also read: Apple losing its sheen to Samsung

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.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Earnings calendar for the week of May 3

Leading stock indexes retreated after gaining mid-week when Wall Street biggies like Apple and Amazon reported impressive quarterly numbers. The Dow Jones Industrial Average was down 190 early Friday, while

How did the first quarter of 2021 turn out for the airline industry?

The airlines sector was severely impacted by the disruption caused by the COVID-19 pandemic in 2020. A year later, the industry is still limping its way to a recovery. In

Amazon (AMZN) fine-tunes growth strategy to stay in the fast lane

The company that witnessed the strongest growth during the pandemic is probably Amazon.com, Inc. (NASDAQ: AMZN), which went into overdrive when the crisis triggered an online shopping boom. Taking a

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top