UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-39010 Dynatrace, Inc. (Exact name of Registrant as specified in its charter) Delaware 47-2386428 (State or other jurisdictio ...

WALTHAM, Mass.--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leader in unified observability and security, today announced it has extended its analytics and automation platform to provide holistic observability and security for large language models (LLMs) and generative AI-powered applications. This enhancement to the Dynatrace® platform enables organizations worldwide to embrace generative AI confidently and cost-effectively as part of their focus on increasing innovation, productivity, and revenue. Dyna ...

WALTHAM, Mass.--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leader in unified observability and security, today announced new AI-powered data observability capabilities for its analytics and automation platform. With Dynatrace® Data Observability, teams can confidently rely on all observability, security, and business events data in Dynatrace to fuel the platform’s Davis® AI engine to help eliminate false positives and deliver trustworthy business analytics and reliable automations. Dynatrace Data Observa ...

WALTHAM, Mass.--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leader in unified observability and security, today announced that it is working with Lloyds Banking Group, one of the UK’s largest financial services providers, to measure the environmental carbon impact of its IT ecosystem, contributing to the organization’s sustainability goals. To help address this need, Dynatrace is using insights and feedback from Lloyds Banking Group to further develop Dynatrace® Carbon Impact. The app translates utilizati ...

In the latest trading session, Dynatrace (DT) closed at $59.35, marking a -0.8% move from the previous day. This change lagged the S&P 500's 0.06% loss on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.76%.Prior to today's trading, shares of the software intellegence company had gained 9.4% over the past month. This has outpaced the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 3.36% in that time.Investors will be eagerly watching for the perf ...

WALTHAM, Mass.--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leader in unified observability and security, today announced it signed a definitive agreement to acquire Runecast, a provider of AI-powered security and compliance solutions. Adding Runecast to the Dynatrace® platform will extend Dynatrace contextual security protection and analytics with Runecast security posture management. This will enable customers to address the risks of misconfigurations and compliance violations in hybrid and multicloud ecos ...

Among top stocks to buy and watch on the IBD Sector Leaders list, Dynatrace stock is potentially actionable as the software developer bounces from support at a key level.X Waltham, Mass.-based Dynatrace (DT) offers customers a customizable enterprise cloud platform designed to integrate security, analytics and automation, using three types of artificial intelligence.Dynatrace's Davis AI is based on predictive, causal and generative AI models. It also allows for forecasting, machine learning, anomaly detecti ...

v This presentation consists of these slides and the associated remarks and comments, which are related and intended to be presented and understood together. Non-GAAP Financial Measures Dynatrace presents constant currency amounts for Revenue and Annual Recurring Revenue to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. Dynatrace provides this non-GAAP financial information to aid investors in better understanding our per ...

Financial Data and Key Metrics Changes - Total Annual Recurring Revenue (ARR) for Q2 was $1.34 billion, an increase of $279 million year-over-year, representing 24% growth [21] - Total revenue for Q2 was $352 million, up 24% year-over-year, with subscription revenue at $334 million, up 26% year-over-year [30] - Non-GAAP operating income for Q2 was $106 million, or 30% of revenue, exceeding guidance by $13 million [31][32] - Non-GAAP net income was $93 million, or $0.31 per diluted share, also above guidance [33] - Free cash flow for Q2 was $34 million, with a trailing 12-month free cash flow of $330 million, or 25% of revenue [34] Business Line Data and Key Metrics Changes - Customer platform adoption remains strong, with 64% of customers using three or more modules, up from 55% year-over-year [26] - The average ARR per new logo land size was approximately $140,000, up 18% year-over-year [23] - The gross retention rate remained in the mid-90s, contributing to a net retention rate of 114% for Q2 [25] Market Data and Key Metrics Changes - The observability and application security market is large and growing, with Dynatrace positioned strongly due to its unified platform and AI leadership [17] - The company added 160 new logos in Q2, consistent with the previous year [22] - There is a growing interest in newer product offerings, including logs on Grail and application security [27] Company Strategy and Development Direction - The company plans to increase investments in R&D innovation and go-to-market strategies, particularly with global system integrators and hyperscalers [43][75] - Dynatrace aims to enhance its partnerships with major players like Kyndryl and Accenture to accelerate digital transformation for customers [78] - The introduction of the new Dynatrace Platform Subscription (DPS) is expected to drive future expansion opportunities [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pipeline and visibility into the second half of FY 2024, despite ongoing macroeconomic volatility [46] - The company is raising its full-year guidance across all top-line and profitability metrics, reflecting the strength of Q2 performance [36] - Management noted that customers are increasingly prioritizing observability and application security as critical components of their business strategies [67][74] Other Important Information - The company released its inaugural global impact report, detailing progress on ESG initiatives [14][15] - The report includes baseline greenhouse gas emissions data and expanded information on diversity and inclusion efforts [15] Q&A Session All Questions and Answers Question: What gave the company confidence to reinvest in the business now? - Management noted good visibility and pipeline into the second half, along with the belief that macro conditions will improve in the future [86] Question: What is driving the net retention rates? - Management clarified that renewals remain strong, and the cautious approach of customers is leading to moderated expansions [102] Question: What is the customer demand around hypermodal AI capabilities? - Customers appreciate the integration of causal, predictive, and generative AI techniques, indicating strong interest in the upcoming Davis CoPilot [99] Question: How does the company measure return on investment for go-to-market and R&D? - The company is focused on the quality of new logo lands and the resulting expansion opportunities, which are seen as key indicators of ROI [121]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-39010 Dynatrace, Inc. (Exact name of Registrant as specified in its charter) Delaware 47-2386428 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1601 Trapelo Road, Suite 116 Waltham, Massachusetts 02451 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code ...