Dynatrace, Inc.DT

Dynatrace, Inc. Revenue Disclosure

10-KFiled May 22, 20252 min read
Revenue Recognition
Disaggregation of revenue
The following table is a summary of the Company’s total revenue by geographic region based on the Company’s contracting entity (in thousands, except percentages):
Fiscal Year Ended March 31,
202520242023
Amount%Amount%Amount%
North America$1,036,664 61 %$852,497 60 %$690,899 60 %
Europe, Middle East and Africa407,200 24 %354,793 25 %292,176 25 %
Asia Pacific151,414 9 %130,611 9 %111,339 10 %
Latin America103,405 6 %92,629 6 %64,116 5 %
Total revenue$1,698,683 $1,430,530 $1,158,530 
For the years ended March 31, 2025, 2024, and 2023, the United States was the only country that represented more than 10% of the Company’s revenues in any period, constituting $987.2 million and 58%, $807.7 million and 56%, and $652.0 million and 56% of total revenue, respectively.
Deferred commissions
The following table represents a rollforward of the Company’s deferred commissions (in thousands):
Fiscal Year Ended March 31,
202520242023
Beginning balance$192,245 $169,261 $126,036 
Additions to deferred commissions131,510 121,100 119,233 
Amortization of deferred commissions(118,563)(98,116)(76,008)
Ending balance$205,192 $192,245 $169,261 
Deferred revenue
Revenue recognized during the years ended March 31, 2025, 2024, and 2023 which was included in the deferred revenue balances at the beginning of each respective period was $975.7 million, $800.0 million, and $670.1 million.
Remaining performance obligations
As of March 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $2,892.7 million, which consists of both billed consideration in the amount of $1,138.5 million and unbilled consideration in the amount of $1,754.2 million that the Company expects to recognize as subscription and service revenue. The Company expects to recognize 53% of this amount as revenue in the year ending March 31, 2026 and the remainder thereafter.
Contract assets
As of March 31, 2025 and March 31, 2024, contract assets of $1.6 million and $5.2 million, respectively, are included in accounts receivable, net, on the Company’s consolidated balance sheets.

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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