Dynatrace (DT) Company Report

Dynatrace has expanded its collaboration with Google Cloud, becoming a launch partner for Gemini Enterprise and Gemini CLI extensions to power the next generation of AI innovation.
The Dynatrace Gemini CLI Extension provides developers with immediate access to observability and root-cause analysis directly within their terminal.
Gemini Enterprise connects AI agents directly to Dynatrace’s observability platform via Google’s A2A protocol, enabling real-time collaboration to detect, resolve, and prevent issues.
To simplify adoption, Dynatrace's AI-driven integrations are now available through the Google Cloud Marketplace.
Dynatrace is among the first observability partners with a Google-validated A2A and Gemini Enterprise-compatible agent, reinforcing its leadership in AI-powered observability and agentic architectures.

8 days ago

Press Release

Dynatrace Discusses Observability Market, Growth Drivers, and Strategic Focus

Revenue Acceleration/Inflection

New Projects/Investments

Accounting Changes

CEO Rick McConnell noted no significant change in the macro spend environment for enterprise-oriented software.
Dynatrace's logs business has grown from single-digit millions to nearly $100 million in consumption in one year, growing at well over 100% annually.
The company's go-to-market strategy, focused on large strategic accounts, resulted in a 45% year-over-year increase in pipeline and a 53% year-over-year increase in seven-figure ACV deals last quarter.
The Dynatrace Platform Subscription (DPS) now accounts for 70% of Annual Recurring Revenue (ARR) and is used by over 50% of customers, broadening platform access and facilitating rapid growth in areas like log management.
Dynatrace aims to re-accelerate ARR growth by FY 2027, while committing to maintaining current margin levels and using resources to accelerate growth.

Dec 10, 2025, 5:50 PM

Transcript

Dynatrace Discusses Observability Market Evolution and Growth Strategy

Revenue Acceleration/Inflection

New Projects/Investments

Product Launch

Dynatrace's logs business has grown significantly, from a small, single-digit millions-of-dollar business in October 2024 to almost $100 million in consumption in one year, growing at well over 100% annually.
The company restructured its go-to-market strategy in early 2024 to focus on large, strategic accounts, resulting in a 45% year-over-year increase in pipeline and a 53% year-over-year increase in seven-figure ACV deals last quarter.
The Dynatrace Platform Subscription (DPS) pricing model now accounts for 70% of Annual Recurring Revenue (ARR) and over 50% of customers, broadening platform access.
Dynatrace aims to re-accelerate ARR growth towards FY 2027, driven by consumption growth in the low 20s, while committing to maintaining current margin levels.

Dec 10, 2025, 5:50 PM

Transcript

Dynatrace CEO Discusses Growth Drivers, AI Strategy, and Market Evolution

Revenue Acceleration/Inflection

New Projects/Investments

Dynatrace's Logs business has experienced rapid growth, reaching nearly $100 million in consumption in one year (from October 2024 to the Q2 earnings release approximately one month prior to the document's publication) and is growing at over 100% annually.
The company's go-to-market strategy, restructured in early 2024, has yielded strong results in strategic accounts, with a 45% year-over-year increase in pipeline and a 53% year-over-year increase in seven-figure ACV deals closed last quarter.
The Dynatrace Platform Subscription (DPS) pricing model has seen significant adoption, now representing 70% of Annual Recurring Revenue (ARR) and utilized by over 50% of customers.
Dynatrace is focused on re-accelerating ARR growth into fiscal year 2027, supported by consumption growth in the low 20s, while committing to maintain current margin levels and reinvesting to leverage the AI-driven market opportunity.
The company differentiates itself with an "Answers, not guesses" approach, utilizing its third-generation platform, including Grail and the AI-powered Davis, to provide causal answers and facilitate a shift towards autonomous operations in the evolving observability market.

Dec 10, 2025, 5:50 PM

Transcript

Dynatrace Discusses Strong Performance, Strategic Growth Drivers, and 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 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.

Dec 2, 2025, 8:35 PM

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.

Dec 2, 2025, 8:35 PM

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.

Dec 2, 2025, 8:35 PM

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.