The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Rick, welcome to Dynatrace. And we certainly look forward to working with you on an ongoing basis. So congrats on that, first and foremost. Guys,
it seems like people are focused on the slight constant currency-adjusted ARR deceleration this quarter. But I think your new disclosures on the
net new ARR growth was super helpful this quarter. And the way I look at it, if you exclude currency and the perpetual runoff, it looks like on a
2-year stack basis, you continue to accelerate ARR growth. Is that the right way to think about this? And I guess, overall, can you characterize the
spending patterns for those that worry about maybe a slowdown in digital transformation spending post COVID?
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: Congratulations on your position. Curious to get at a high level, any changes in the strategic direction for the company? Secondly, on a more tactical
level, were you able to discern any changes in product contribution from the different silos? And any update on the competitive environment
would also be very useful.
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: That's great. And just a quick follow up. If all these initiatives were to bear fruit, are we making too much of the sequential deceleration that
everybody is pointing out? And if these initiatives bear fruit, could we see reacceleration in the business because you are definitely investing for
growth, as you said, the research development and the partnership and the sales and marketing side?
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Rick, I want to ask a high-level question of you. So as you did your diligence on Dynatrace and have gotten to know the business better over the
last 1.5 months or so, what was the KPI that stood out to you where you said, man, this is really best-in-class, we can get a lot of leverage out of
this. And then conversely and probably more interestingly to this crowd, what was the KPI where you thought, this is okay, but we can probably
do better?
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