Dynatrace Inc at Goldman Sachs Communacopia & Technology Conference Summary

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

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : <_ALACRA_META_ABSTRACT>Great. So can you recap for us kind of the big milestones that you've accomplished in the last three years and then cast for us a picture of what Dynatrace looks like in the next four to five years?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : Yeah. So last year, I'll give you an example that our CEO interviewed the CEO of Salesforce and we had a lot of questions. Presumably, we asked one question and Mark took 25 minutes. Well that was all about --

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : You are welcome to do it. It's okay.

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : As you look at the road ahead, how do you see the business positioned in light of a market that is not quite consolidated? Although I have to say that we're starting to see some signs of stabilization in your business and other companies' businesses. The market is still kind of a little fragmented. And it's confusing for me, at least maybe it's not confusing for clients as to where it is that Dynatrace plays, where it does the company XYZ plays. Can you lay out for us how you view your addressable market and how you see the company's opportunities four to five years out? And how does this market look like at some point when you're done starting out APM versus search versus observability versus infrastructure monitoring it? It's like a lot of things that are going on with it. Who wins?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : Rick, how far along are we in this sort of end-to-end observability sort of consolidation phase? I mean, you talked about all the tool

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : Yes. Very interesting. I want to touch on the log management opportunity. Grail has been a very exciting part of the Dynatrace story for a while. But at the same time, it seems like you have security vendors going after this opportunity. You have observability competitors going after the opportunity. So what's Dynatrace's right to win in this category?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : So if I could just interrupt very quickly there. What is the technological breakthrough that is allowing you to displace the traditional vendors? And what is it that they have not done that Dynatrace has been able to do that is allowing you to get that price performance advantage?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : I want to switch to kind of the go-to-market changes that you've made over the last kind of 1.5 years. Can you give us an update on the progress that you've observed and where we stand with that evolution?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : (inaudible)

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : [Matt's] telling me, Kash, your models are wrong. We need to take our numbers up for that.

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : And maybe talk about the kind of push upmarket into these strategic IT 500 accounts in context of potentially longer deal cycles? Because I think over the last two quarters, you've disclosed some pretty punchy statistics around pipeline growth, 40%, 50%. So maybe just talk about that dynamic.

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : I want to shift to DPS with the last 11 minutes. I love DPS. I spend a lot of time here. But 45% of customers, 65% of ARR. I guess what has been the main driver of DPS adoption, key learnings to date that you can implement moving forward?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : How are you incentivizing the sales force to help ramp consumption within their customer base after having landed a DPS contract?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : And we're just two quarters in.

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : And can you talk about -- there's a bit of a wrinkle with some of the on-demand consumption piece versus renewals. So kind of where are we in that journey?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : Seven minutes.

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : That's helpful. I want to flip back to the AI piece with the last five minutes that we have here. You talked about the explosion of data and complexity driving demand for observability in the age of AI. Can you help frame for us a bit either qualitatively, quantitatively, how much of a tailwind that can prove to be for Dynatrace in sort of the near to medium term? Because you've got the product angle in terms of AI observability, but then you also have the knock-on effects of more data complexity driving increased demand for IT infrastructure monitoring, APM, so on and so forth.

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : I'm curious, as you guys move from simplistically like root cause identification to like autonomous remediation., how does Dynatrace make sure that they're capturing that incremental value from a pricing perspective?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : DPS should help, right?

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : Final few seconds. Anybody has any questions? Just I have one question. AI natives, are they trying to build something on their own because they're so smart and they've got all the technical expertise? The exclusion of entertaining Dynatrace in their IT -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 5:10PM, DT.N - Dynatrace Inc at Goldman Sachs Communacopia & Technology Conference

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : On that note, thank you so much for your support of the conference, and thank you to our clients and enjoy the rest of another 1.5 days.