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IPO Dynatrace

Leading application performance management
IPO
Medium risk

Total revenues in 2017-2019

Invest in IPO Dynatrace

This investment idea is no longer available. New applications are not accepted

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Investment Idea Details
The Company

Dynatrace offers a software intelligence platform, purpose-built for the enterprise cloud. As enterprises embrace the cloud as the means for digital transformation, the Company’s all-in-one intelligence platform addresses the growing complexity that technology and digital business teams face.

Dynatrace software intelligence platform allows enterprise customers to modernize and automate IT operations, develop and release higher quality software faster, and deliver superior user experiences.

Market Opportunity

According to Gartner, enterprises will quadruple their APM use due to increasingly digitized business processes from 2018 through 2021, to reach 20% of all business applications. The annual potential market opportunity for Dynatrace solution is currently approximately $18 billion.

As of March 31, 2019, the company had more than 2,300 customers in over 70 countries in diverse industries such as banking, insurance, retail, manufacturing, travel and software. Dynatrace dollar-based net expansion rate was 140% as of March 31, 2019.

The company targets the largest 15,000 global enterprise accounts, which generally have annual revenues in excess of $750 million.

Risks

The company is currently in transition to subscription based revenue model. They may experience a loss of customers and annualized recurring revenue as customers convert from Classic products to Dynatrace platform.

The company has substantial level of indebtedness which could materially and adversely affect financial condition.

Dynatrace faces significant competition which may adversely affect ability to add new customers, retain existing customers and grow business.

Financials

Recent similar IPOs:
New Relic (NEWR) +48% 3-month return.

Company’s LTM revenue was $431M with a 17% quarterly revenue growth YoY. Dynatrace had 1364 enterprise customers as of March 2019, in comparison with 574 customers as of March 2018, which represents a YoY increase of 138%. The company demonstrates moderate topline revenue growth due to revenue model transition and shows solid customer growth with dollar based expansion rate of 140%.

The company is raising $460M at a $3.9B valuation. According to our model, the market value of DT equity will be $4.5B after an IPO (10.5x P/S). If so, the expected return on investment on the first day is 15%-20%, and we also expect shares to appreciate in the market, so that total ROI will be around 40% after 3 months. New Relic (NEWR), the closest public competitor, is now trading at 11x P/S.

How IPO Investments Work
1. Collection of funds

2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

Publication
24 Jul
Threshold amount
$50
2. Buy shares

We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

Submit applications before
30 Jul
3. Start Bidding

The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

Start Bidding
1 Aug
Annual return forecast
+40%
4. Receiving profit

After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

End
2 Nov
Early profit fixation

Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

Fee

FOR ENTRY

3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

FOR EXIT

1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

SUCCESS

20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

TO EARLY EXIT

Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

Advantages Enjoyed by Those Investing with United Traders

RELIABILITY

Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.

IN THE PROFIT FROM THE FIRST DAY

Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

LOW ENTRY THRESHOLD

Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

Invest in IPO Dynatrace

This investment idea is no longer available. New applications are not accepted

View more ideas