Dynatrace (DT) Company Report

Dynatrace reported strong performance with 16%-17% revenue ARR growth and 20% CRPO growth, alongside $70 million in net new ARR, and increased its ARR growth guide for the back half of the year.
The logs business is rapidly approaching $100 million and growing at over 100% year-over-year, driven by cost reduction and improved outcomes through end-to-end observability.
Dynatrace Platform Subscription (DPS) customers, now 70% of overall ARR, exhibit double the consumption growth of non-DPS customers, contributing to overall consumption growth in the 20%+ range.
The company's demand environment is "incredibly healthy" with the strongest pipeline in five or six quarters, and a normalized subscription growth rate is projected at mid-teens (16%) exiting fiscal 2026.
Dynatrace differentiates itself with a flexible DPS pricing model, a common platform for on-prem and cloud workloads, and a decade-long investment in its AI-powered platform for deterministic answers.

3 days ago

Transcript

Dynatrace Discusses Strong Performance, Growth Drivers, and Strategic Advantages at UBS Conference

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Dynatrace reported strong recent performance with 16-17% revenue ARR growth and 20% CRPO growth in the most recent quarter, alongside $70 million in net new ARR. The company increased its guide for the back half of the year for ARR growth and anticipates a normalized subscription growth rate of mid-teens (around 16%) for fiscal 2026.
Key growth drivers include the Dynatrace Platform Subscription (DPS), which now accounts for 70% of overall ARR and leads to 2X higher consumption rates. The logs business is rapidly approaching $100 million and growing at over 100% year over year, while application security is the second fastest growing business.
Dynatrace differentiates through its ability to support both on-prem and cloud workloads with a common platform and offers a flexible DPS pricing model without overage rates. The company has leveraged an AI-powered platform for over a decade and is expanding its platform to be developer-ready with ecosystem integrations.
Recent go-to-market changes, including increased investment in large strategic accounts, strengthening the partner ecosystem (especially GSIs), and introducing strike teams focused on consumption, have successfully driven pipeline growth and deal closures.

3 days ago

Transcript

Dynatrace Discusses Strong Performance, Strategic Growth Drivers, and Prudent Outlook at UBS Conference

Revenue Acceleration/Inflection

Guidance Update

New Projects/Investments

Dynatrace reported strong performance with 16-17% revenue ARR growth and 20% CRPO growth, alongside $70 million in net new ARR, and increased its ARR growth guide for the second half of the year.
The Dynatrace Platform Subscription (DPS) now constitutes 70% of overall ARR, with DPS customers showing double the consumption growth of non-DPS customers, while the logs business is rapidly approaching $100 million and growing over 100% year over year.
Despite a "healthy" demand environment and the "strongest" pipeline in five or six quarters, the company's second-half guidance is "prudent" due to the timing of large deals, with a normalized subscription growth rate of 16% exiting fiscal 2026 after accounting adjustments.
Dynatrace is expanding its application security business, its second fastest-growing segment, by focusing on areas like runtime vulnerability analytics and Cloud SIEM, and differentiates itself by supporting both on-prem and cloud workloads with a unified platform and a flexible DPS pricing model.

3 days ago

Transcript

Dynatrace Reports Strong First Half Performance and Raised Guidance

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Dynatrace reported a very strong first half of the year, leading to raised guidance for the second half which is largely de-risked.
Key growth drivers include log management, which is nearing $100 million in overall consumption and growing at north of 100% per year, alongside a 45% year-over-year increase in the overall strategic pipeline.
The company experienced strong consumption growth of more than 20% and net new ARR growth of 16% in Q2 (14% for the first half), with customers increasingly opting for early renewals and expansions into recurring revenue (ARR) over one-time on-demand consumption (ODC).
Dynatrace's platform approach, leveraging its decade-old AI engine and moving towards autonomous operations, is driving material consolidation in observability and a 30% increase in new logo land size as customers seek integrated solutions for complex AI workloads.

Nov 18, 2025, 7:00 PM

Transcript

Dynatrace Reports Strong First Half, Raises Guidance, and Highlights Key Growth Drivers

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Dynatrace reported a strong first half of the year, raised guidance for the second half, and believes the second half is largely de-risked.
Key growth drivers include log management, which is now near $100 million in overall consumption and growing at north of 100% per year, and a 45% year-over-year increase in the strategic pipeline.
The Dynatrace platform subscription (DPS) now accounts for over 50% of customers and 70% of overall ARR, with consumption growth exceeding 20%, which is considered a leading indicator of future net new ARR.
Net new ARR accelerated to 16% in the second quarter and 14% for the first half, with customers increasingly choosing early renewals and expansion over on-demand consumption (ODC).
The company's AI engine is used by 100% of its customers, and new logo land sizes increased 30% due to a trend towards tool consolidation.

Nov 18, 2025, 7:00 PM

Transcript

Dynatrace Discusses Strong First Half Performance and Growth Drivers

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Dynatrace reported a strong first half of the year, leading to raised guidance for the second half and a largely de-risked outlook.
Key growth drivers include the log management business, which is approaching $100 million in consumption and growing at over 100% annually, and a 45% year-over-year increase in the strategic pipeline.
The company achieved accelerated net new ARR growth of 16% in Q2 and 14% for the first half, supported by consumption growth exceeding 20%. A decrease in on-demand consumption revenue (ODC) was due to customers opting for early renewals and expansions, which is viewed as a positive shift to recurring revenue.
New customer acquisitions are landing 30% larger due to a trend towards end-to-end observability and tool consolidation.
Dynatrace is advancing its AI-powered observability platform towards autonomous operations (Phase 4) and plans to expand into the developer market with new offerings soon.

Nov 18, 2025, 7:00 PM

Transcript

Dynatrace (DT) Discusses Strong Q2 Results, Raised Guidance, and Growth Drivers

Guidance Update

Revenue Acceleration/Inflection

Accounting Changes

Dynatrace reported strong Q2 results, with net new ARR accelerating to 16% growth in Q2 and 14% for the first half.
The company raised its full-year guidance after Q2, supported by improved visibility and a healthy pipeline growing at almost 2x the ARR growth rate.
Growth is driven by increased adoption of the Dynatrace platform subscription (DPS), significant traction in logs, and overall consumption growing at over 20%.
Q3 subscription revenue is guided to 13% to 14% in constant currency, a step down from Q2's 17% due to a tough comparable from changes in on-demand consumption (ODC) revenue accounting.
Net new ARR seasonality is expected to be less back-end loaded than sell-side models, with a more balanced 46-54% split between Q3 and Q4.

Nov 18, 2025, 4:20 PM

Transcript

Dynatrace CFO Discusses Strong Q2 Performance and Growth Outlook

Guidance Update

Revenue Acceleration/Inflection

Accounting Changes

Dynatrace reported strong Q2 results, with net new ARR accelerating to 16% growth in Q2 and 14% for the first half, leading to a raised full-year guide.
The company is seeing significant traction with its Dynatrace Platform Subscription (DPS), with consumption growing north of 20%, which is a leading indicator for future ARR acceleration.
Pipeline growth is robust, almost 2x the rate of ARR growth, driven by large enterprises consolidating fragmented tools for efficiency and cost savings.
Net new ARR seasonality for the second half is expected to be more balanced between Q3 and Q4 (around 46%-54% split) than current sell-side models, which are too heavily weighted to Q4.
Q3 subscription revenue growth is guided at 13%-14% in constant currency, a step down from Q2, attributed to tough year-over-year comparisons from ODC revenue accounting changes and prior-year one-time adjustments.

Nov 18, 2025, 4:20 PM

Transcript

Dynatrace discusses Q2 results, growth acceleration, and outlook

Guidance Update

Revenue Acceleration/Inflection

Accounting Changes

Dynatrace reported strong Q2 results, with net new ARR accelerating to 16% growth in Q2 and 14% for the first half, leading to a raised full-year guide.
The company sees a market opportunity for over 20% growth, driven by increasing AI workloads and customer demand for consolidating fragmented tools in complex enterprise environments.
Pipeline growth is robust, nearly doubling the ARR growth rate, and the Dynatrace Platform Subscription (DPS) model is gaining traction, now representing 70% of ARR. DPS customers consume 2x more than SKU-based customers, with overall consumption growing over 20%, indicating future ARR acceleration.
Management expects net new ARR to be more weighted to Q4 than Q3, with an anticipated split of approximately 46% in Q3 and 54% in Q4, differing from sell-side models. Q3 subscription revenue guidance of 13%-14% in constant currency reflects tough year-over-year comparisons due to accounting changes for ODC revenue and one-time adjustments.

Nov 18, 2025, 4:20 PM

Transcript

Dynatrace and Microsoft Partner for AI Integration

New Projects/Investments

Product Launch

Dynatrace has announced a new integration with Microsoft Azure SRE Agent, making it the first observability platform to integrate with Microsoft's AI-powered reliability assistant for Azure.
This partnership aims to scale enterprise customer AI initiatives by combining AI-driven root cause analysis from Dynatrace with deeper insights from Azure SRE, enabling faster and more efficient resolution of complex IT problems and automation of cloud operations.
The integration provides key benefits including smarter detection and remediation, automated operations to reduce mean time to repair, and proactive reliability by preventing incidents before they impact customers.
The collaboration supports the growing AI market, with worldwide spending on AI forecast to reach nearly $1.5 trillion in 2025.