Jake Rivera

Jake Rivera asked about the key learnings from the past two years regarding larger platform deals and whether Dynatrace is observing an improvement in win rates and close rates as its sales model has been refined.

Answer

Jim Benson, Chief Financial Officer, noted that the emergence of very large vendor consolidation deals, first observed in Q4 fiscal 2024, has become a sustained trend. He stated that Dynatrace's sales force is well-equipped, and win rates are quite high due to a compelling value proposition. The caution in guidance is solely due to the timing variability of these large deals, which require extra approval levels. Rick McConnell, Chief Executive Officer, added that CXO interest in observability is rapidly increasing, driven by demand for end-to-end observability, AI observability, and business observability.

Jake Rivera asked about the learnings from Dynatrace's experience with large platform deals over the past two years and whether win rates and close rates have improved as the sales model has been adjusted.

Answer

CFO Jim Benson explained that the emergence of large vendor consolidation deals has become a sustained trend, with Dynatrace's sales plays well-equipped to benefit. He stated that win rates are quite high due to a compelling proposition, but timing variability for these large deals necessitates caution in guidance. CEO Rick McConnell highlighted increasing CXO interest in end-to-end observability, AI observability, and business observability as core themes driving these deals.