Dynatrace Inc at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : So it's a question I'm asking everyone at the moment. And it's, how does it feel out there in terms of end demand? Because I guess the -- is it stock market? And we can debate that all day long. But like difficult to find answers at the moment, but how is the real world?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And the -- if you think about it, like the bigger question -- so the big thing going on for you guys is that you're talking more about strategic deals that the customer conversations are changing, et cetera. Talk a little bit about what's driving that from a customer perspective? Maybe start with where the industry is as a whole and then how you can help the customers on that?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And do you -- on that note, though, because like we've been talking about full stack observability for a few years now. And I was like, yes, I want to do that. I remember like I wrote my first big note on observability like five years ago and it was like that's what everyone is doing.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Yes. Thank you. Yes. But it is only now coming kind of together. Is that kind of driven by product maturity? Or like back then it was all marketing. We knew you need to get there, but the products weren't there? Like how do we have to think about that?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. Perfect. And then so you have -- if you go to your customer, you have it, but now like, look, take Box as an example as well. But like everyone, we're still on-premise, we're still messy. How do I kind of go from that messy world to your kind of new fancy world?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes. So then -- so if I'm like a big enterprise on-premise cloud, so I can start consolidating at home towards Dynatrace, as I move to the cloud, I can use Grail or can I use Grail on-premise as well? Or is that more cloud core? And so as I move to the cloud, I just do more, more Grail --

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Okay. Perfect. Okay, makes sense. And you mentioned log as a thing that came up a lot. That was probably the last leg to bring all the stuff together?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : You start talking more about logs like, where are you on that journey? And I'm asking because it does look like there used to be a log company that was very big that might -- where a lot of feeds might come up for renewal, like what are you seeing there?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Can I -- because I'm the financial guy, so I look at numbers. The -- LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:50PM, DT.N - Dynatrace Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : If I just look at numbers, the big log guy, who is like massively bigger than all of you guys. In this new world, and I'm doing less logs like, is that same size up for grab? Is it going to be a bigger market? Is it going to be a slightly smaller market? How do you think about that?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : So okay, yes, yes. Okay. That answers it. And then the -- since we talked about players in the market, we just saw -- obviously, it's an interesting market. And if something is interesting, and other people want to share of that. We just saw like Palo Alto to like a kind of step into the -- with Chronosphere into your market. How do you think about kind of how this will play out? Because like to some point, they look at the same data set for some of it. On the other hand, not fully, I think your data volume is much bigger. Like how do you think about how that's kind of going to play out?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. Perfect. Hey guys, could you in the back of the room? All right. Could you just kind of quieten it. Thank you. The next thing is like you mentioned GenAI already a little bit. Can you just -- like you guys have been doing AI like for a while and with more kind of anomaly detection, et cetera? Like how is GenAI kind of play into this [large ML]?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : So that's one aspect. The other aspect I wanted to speak to is like, in theory, with GenAI, like the whole idea is like there's going to be a lot more software, there's more applications, et cetera, which basically means there's more observability that is needed. Is that a fair statement?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And so the -- that sounds all really interesting, like at the moment, if I talk to the industry players, that's a little bit of a bragging competition going on. It's like, oh, yes, I work with this -- what's your kind of --

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, differentiation position, you talk about like AI customers or whatever, what's the situation here for you?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Okay. Okay. Perfect. And then shifting gear to the last -- the next few minutes. So there's a product and the product has evolved. Now let's talk about the organization because the organization needed to be evolved as well. And there's two aspects. It is the platform and platform pricing and there's go-to market. Those are like about a year to two years both of those initiatives. Can you speak to kind of how this is coming together for you on both kind of vectors?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Pricing, pricing, yes.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Can I -- as we go through this now, like there's one thing that I'm talking with investors about that's kind of always raises the question, it's like, your product story is coming together. Your go-to-market is coming together. The pricing is coming together, but the overall growth numbers haven't changed.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : So what's the disconnect?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, because at some point, it needs to show up like -- full -- LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:50PM, DT.N - Dynatrace Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes, I see it also in my client conversations on the Dynatrace clients like they love it. Yes. So yes. Okay. The one thing that you probably got feedback as well in terms of communications or where you're different is, if a client over uses on the platform side. Some of your peers would say, well, then I'll give you like the full like a higher price. And then that way, I encourage early renewals, have bigger discussions. You don't punish clients. And on the one hand, it's good, like because you want adoption. On the other hand, it kind of maybe takes away a little bit one off the upsell opportunities.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : They take a little bit. Like how -- talk a little bit about your thinking there.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Give you a turn.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Okay. And then what drove the decision to kind of try to smooth that overage out a little bit because it was -- LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:50PM, DT.N - Dynatrace Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. And then last question for me before I let you go. Like -- how do I think about that margin versus growth envelope now for you guys going forward?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Perfect. That's a great closing statement. Thank you.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Thank you. Perfect. Thank you. Thank you. Good to have you have you again.