Dynatrace, Inc. · NYSE:DT
Dynatrace — Q1 2027 Earnings Presentation
34 slides from Dynatrace's earnings presentation, Aug 5, 2026
Slide 1: Q1 2027 Investor Presentation
Q1 2027 Investor Presentation August 5, 2026
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation consists of these slides and the associated remarks and comments, which are related and intended to be presented and understood together. Please refer to the appendix of these slides for definitions of certain terms. Cautionary Language Concerning Forward-Looking S
Slide 3: Enterprises are facing unprecedented challenges
Enterprises are facing unprecedented challenges Explosion of Tool Struggle to trust AI complexity fragmentation and realize value 3
Slide 4: Unprecedented challenges demand a differentiated approach
Unprecedented challenges demand a differentiated approach UNIFIED DATA CONTEXT INTELLIGENCE Eliminate data Ground decisions Get answers, blind spots in precise context not guesses Unified telemetry for Real-time mapping across Deterministic intelligence instant answers dependencies with autonomous a
Slide 5: The AI-powered observability platform
The AI-powered observability platform Transform complexity into powerful business assets. 5
Slide 6: 20+ years of groundbreaking innovation & milestones
20+ years of groundbreaking innovation & milestones Surpasses $2B ARR A Leader in Gartner® Deepened strategic Magic Quadrant™ collaboration with for Observability Kubernetes ServiceNow to Platforms for 16 Security Posture advance consecutive years Management solution launched autonomous IT Davis CoP
Slide 7: Platform evolution to support autonomous operations
Platform evolution to support autonomous operations THE LEADER THE INNOVATOR THE PIONEER TODAY Reactive Automated Preventive Autonomous operations root-cause operations operations Issues are deeply Issues are auto-diagnosed Issues are anticipated Issues are resolved understood after they occur when
Slide 8: Groundbreaking technologies at the core
THE DYNATRACE PLATFORM Groundbreaking technologies at the core Unified data lakehouse Real-time dependency graph Agentic operations system Grail Smartscape Dynatrace Intelligence 8
Slide 9: Operate on determinism and facts
Operate on determinism and facts UNIFIED DATA CONTEXT INTELLIGENCE ANSWERS Traces Metrics Development & Logs ITOps teams Topology Dynatrace Behavior Intelligence Grail Code Cloud & AI native teams DETERMINISTIC Metadata AGENTS: Network Root Cause Agent Analytics Agent Business teams LLMs Forecasting
Slide 10: Considered a leader in the cloud observability market since 2005
Considered a leader in the cloud observability market since 2005 Named a Leader in the 2026 Dynatrace named a Recognized as a Leader in Dynatrace named a Leader Gartner® Magic Quadrant™ for Leader in The Forrester both the Cloud-Native and Outperformer in 2026 Observability Platforms. This Wave™: AI
Slide 11: American Airlines Transforms Observability and Accelerates Delivery
. American Airlines Transforms Observability and Accelerates Delivery with Dynatrace Dynatrace impact: “Dynatrace helped us to bring our new AI travel Different buckets of logs reduction in mean time to detect tool to market much faster because it gives our from a legacy solution all by leveraging D
Slide 12: A rapidly expanding total addressable market
A rapidly expanding total addressable market $92B TAM Core Observability: $64B Application Security: $18B AI & LLM Observability: $10B 12 Based on internal estimates and third-party research.
Slide 13: Expansive go-to-market to capture global opportunity
Expansive go-to-market STRATEGIC to capture global 15,000 customers ENTERPRISE COMMERCIAL Comprehensive partner channels Global go-to-market reach Global System Integrators (GSIs), Hyperscaler and Technology 35+ countries across NORAM, EMEA, APAC, and LATAM Alliance Partners, Regional resellers and
Slide 14: Dynatrace Platform Subscription (DPS)
Dynatrace Platform Subscription (DPS) Flexible and scalable pricing model suited for the enterprise Full platform access Simple contract No hidden fees Frictionless upsell 14
Slide 15: Building blocks in place for continued success
Building blocks in place for continued success Differentiated AI-powered Continuous innovation and Large and expanding TAM observability platform platform evolution Proven and scalable go-to- Flexible, customer-friendly Powerful combination of market model pricing model driving growth and profitabil
Slide 16: Q1 FY 2027 Financial Results
Q1 FY 2027 Financial Results
Slide 17: Dynatrace financials at a glance
. Dynatrace financials at a glance $2.14B 96% Mid-90s % 29% Annual Q1-27 Subscription Gross TTM Q1-27 Recurring Revenue Retention Non-GAAP Revenue1 Mix Rate1 Operating Margin1,3 17% 15% 110% 32% ARR Q1-27 Subscription Net TTM Q1-27 Growth Revenue Retention Pre-tax Adjusted FCF YoY2 Growth YoY2 Rate1
Slide 18: Total ARR growth
Total ARR growth QUARTERLY TOTAL ARR ($M)1 $2,136 $2,054 $1,972 $1,899 $1,822 $1,734 $1,617 $1,647 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 20% 16% 15% 18% 17% 20% 18% 17% 19% 18% 17% 16% 16% 16% 16% 17% As Reported YoY Growth % Constant Currency YoY Growth %2 1. Quarterly Total ARR amounts s
Slide 19: Net New ARR growth
Net New ARR growth QUARTERLY & LAST TWELVE MONTHS (LTM) NET NEW ARR @ CC ($M)1 Constant Currency YoY Growth %2 $311 $298 $270 $277 $254 $263 $85 $70 $75 $81 $73 $51 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Quarterly Y/Y Growth 13% 16% 11% 9% 66% / 41%3 LTM Y/Y Growth (2)% 1% 5% 12% 23% / 17%3 1. Net
Slide 20: Subscription & Total Revenue growth
Subscription & Total Revenue growth QUARTERLY REVENUE ($M) $555 Total Revenue1 $532 Subscription Revenue $515 $530 $494 $477 $506 $493 $445 $473 $436 $458 $418 $424 $417 $400 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 19% 20% 19% 19% 17% 16% 16% 15% 20% 21% 20% 19% 17% 16% 16% 15% Total Revenue
Slide 21: Efficient model with best-in-class gross margins
Efficient model with best-in-class gross margins1 GAAP GROSS PROFIT MARGIN NON-GAAP GROSS PROFIT MARGIN2 86% 85% 85% 87% 87% 87% Subscription GM Subscription GM Total GM Total GM 82% 84% 84% 84% 81% 81% 19% 21% 18% Services GM 8% 4% 5% Services GM FY25 FY26 Q1-27 TTM FY25 FY26 Q1-27 TTM 1. Our refer
Slide 22: Highly efficient operating model
Highly efficient operating model GAAP OPEX $’S & AS % OF REVENUE ($M) NON-GAAP OPEX $’S & AS % OF REVENUE ($M)1 $1,451 $1,143 $1,401 $1,102 1% Other OPEX2 1% $1,199 $938 1% 18% R&D 23% 24% R&D 17% 16% 23% 34% 34% S&M 31% 30% 29% S&M 36% 11% 11% 11% G&A 7% G&A 8% 7% FY25 FY26 Q1-27 TTM FY25 FY26 Q1-2
Slide 23: FY27 guidance summary
FY27 guidance summary Based on information available as of August 5th, 2026, Dynatrace is issuing guidance for the second quarter and updating its prior guidance for full year fiscal 2027 in the tables below. This guidance is based on the average foreign exchange rates for the month of June 30, 2026
Slide 24: Updated FY27 ARR guidance vs. Prior
Updated FY27 ARR guidance vs. Prior1 15.5%-16.5%2 $2,382 $(23) 15.5%-16.5%2 - $2,402 $2,359 - $2,379 Maintaining Constant Currency ARR Guidance Prior ARR Q1 Currency Updated ARR Guidance Headwind Guidance (as reported $) (as reported $) 1. Values have been rounded and may not add up precisely to the
Slide 25: Updated FY27 Revenue & Subscription Revenue guidance vs. Prior
Updated FY27 Revenue & Subscription Revenue guidance vs. Prior1 Total Revenue Subscription Revenue 14-15%2 14%-15%2 $2,317 - $(19) 14.5%-15%2 $2,217 $2,335 $6 - $(18) 14.5%-15%2 $2,306 $2,235 $5 $2,206 - - $2,320 $2,220 25bps Raise to Guidance at Midpoint 25bps Raise to (CC) Guidance at Midpoint (CC
Slide 26: Updated FY27 Non-GAAP Income from Operations Guidance vs. Prior
Updated FY27 Non-GAAP Income from Operations Guidance vs. Prior1 Non-GAAP Income from Operations2 29.5% 29.5%-29.75% $(5) $5 $682 $682 - - $690 $690 25bps Raise to Guidance at the High End Prior NG Op Income Q1 Currency Guidance Change Updated NG Op Income Guidance Headwind at Midpoint Guidance 1. T
Slide 27: Definitions & Non-GAAP Reconciliations
Definitions & Non-GAAP Reconciliations
Slide 28: Appendix - Definitions
Appendix - Definitions 1) Annual Recurring Revenue (ARR) is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of Total ARR any revenues derived from month-to-m
Slide 29: ARR expansion trends
ARR expansion trends1 FY25 FY26 FY27 ($ in millions) Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 Year-over-Year ARR (As Reported) $1,541 $1,617 $1,647 $1,734 $1,822 $1,899 $1,972 $2,054 $2,136 Year-over-Year increase 19% 20% 16% 15% 18% 17% 20% 18% 17% TTM FX headwind/(tailwind) 2 12 (14)
Slide 30: Non-GAAP subscription and services gross margin reconciliation
Non-GAAP subscription and services gross margin reconciliation1 FY26 Q1-27 TTM Share- Employer Payroll Acquisition- Share- Employer Acquisition- Tax Amort. of related, Payroll Tax Amort. of related, ($ in millions) GAAP Based Non-GAAP GAAP Based Non-GAAP on Employee Intangibles Restructuring on Empl
Slide 31: Non-GAAP subscription and services gross margin reconciliation
Non-GAAP subscription and services gross margin reconciliation1 FY25 Share- Acquisition- Employer Payroll Amort of related, ($ in millions) GAAP Based Tax on Employee Non-GAAP Intangibles Restructuring Comp. Stock trans. & Other Subscription Cost of 233 (27) (2) - - 205 Revenue Subscription Gross $1
Slide 32: Non-GAAP income from operations reconciliation
Non-GAAP income from operations reconciliation1 FY26 Q1-27 TTM Employer Payroll Acquisition- Employer Acquisition- Stock- Stock- Tax Amort. of related, Payroll Tax Amort. of related, ($ in millions) GAAP Based on Employee Restructuring Non-GAAP GAAP Based on Employee Restructuring Non-GAAP Intangibl
Slide 33: Non-GAAP income from operations reconciliation
Non-GAAP income from operations reconciliation1 FY25 Acquisition- Stock- Employer Payroll Amort of related, ($ in millions) GAAP Based Tax on Employee Restructuring Non-GAAP Intangibles Comp. Stock trans. & Other Cost of Revenues 320 (37) (2) (13) - 268 Gross Profit $1,378 $37 $2 $13 - $1,431 Gross
Slide 34: Adjusted FCF reconciliation
Adjusted FCF reconciliation1 ($ in millions) FY25 FY26 Q1-27 TTM Adjusted Free Cash Flow Net Cash Provided by Operating Activities $459 $562 $598 PP&E (26) (32) (28) Capitalized software additions (3) - - Cash paid for acquisition-related, restructuring, 1 2 8 and other costs Total Adjusted FCF $432