Dynatrace Inc Q1 2024 Earnings Call Transcript

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

Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst : Congrats on the quarter. I want to ask you on DPS since you're leaning on DPS this year. What have you seen so far from customer feedback on DPS? Are people kind of able to map their existing spend on DPS? Is there a period of learning? And any way to understand what are the expansion characteristics month-over-month? I think you talked about the point about accelerating ARR because of DPS. I think you said that last quarter as well. I'm just trying to understand any indications that might corroborate that point.

Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst : Got it. And one follow-up for you, Jim, on ARR. I'm trying to understand kind of the implied Q2 net new ARR guide, you kind of kept the 35%. And I appreciate that it's early in the year and all that. But it does imply kind of a downtick in net new ARR in Q2 versus Q1 in the growth. I'm trying to understand if you're seeing any kind of -- anything in the business that makes you feel like that net new growth might tick down next quarter? Was there any kind of pull in of deals into Q1 from Q2? Or is there just a little bit more conservatism given kind of the CRO transition?

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : Rick, I wanted to go to -- back to Grail. It's starting to show up a lot more in partner conversations and they tend to be somewhat larger deals to on the logging side. Can you give us a bit of -- a bit more color on how you're thinking about cross-selling that? What does the pipeline look like for that? And in terms of like areas to maybe reaccelerate NRR, is that -- how do you think about Grail in the context of that?

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : Yes. Got it. And then going back to AI. There's been a lot of talk in the industry about vector databases or vector search. I don't know that we've talked about that in terms of the Dynatrace platform. Can you give sort of your perspective on vector and if that plays a role in the tech stack?