Dynatrace (DT)

Please forgive the length as i wanted to consolidate a brief background on this company.

i see that Dynatrace (DT) has been mentioned on this illustrious and illuminating board a few times over the past year:
by Bear and others saying:

Along with Cisco’s recent acquisition, AppDynamics, and a private company called Dynatrace, New Relic is one of the main leaders in the APM …

Splunk, Solarwinds, New Relic, Dynatrace - and the big dog that is not publicly traded, BMC Software which is one of the gorillas in the room in this space.

Well now Dynatrace is a publicly traded company.

Alteryx and Dynatrace

…and i have seen them mentioned in comparison to Alteryx with availability and reliability scores leaning toward AYX as the winner:

Alteryx Platform vs Dynatrace

(AYX) raised $117 million in their IPO on March 24th 2017.
(DT) raised $544 million in their IPO on July 31st, 2019

Dynatrace’s Stock Climbed 49% In Market Debut. Its CEO Recalls How A Dinner In Austria Put The Gears In Motion
Per Gartner, Dynatrace leads its market by edging out rivals New Relic and AppDynamics, the latter which was sold to Cisco for $3.7 billion in 2017 two nights before a planned IPO.

So i started a small position in Dynatrace (DT) a couple/few weeks ago and am pleased as i continue researching.

Splunk and Dynatrace

Splunk just reported well and is bouncing up and Dynatrace, i suspect, has been rising partly in sympathy with that and the general SaaS sector recovery the past few days/weeks.

Dynatrace App for Splunk
The Dynatrace App for Splunk works together with the Dynatrace Add-on for Splunk and provides a set of powerful dashboards and saved searches to visualize Dynatrace data in Splunk.

About Dynatrace
Dynatrace has redefined how you monitor today’s digital ecosystems. AI-powered, full stack and completely automated, it’s the only solution that provides answers, not just data, based on deep insight into every user, every transaction, across every application. Gartner has published its 2018 Magic Quadrant for Application Performance Monitoring Suites, and for the 8th year in a row, Dynatrace is positioned in the Leaders Quadrant.

‘In the fields of information technology and systems management, application performance management (APM) is the monitoring and management of performance and availability of software applications. APM strives to detect and diagnose complex application performance problems to maintain an expected level of service.’

After the Dynatrace IPO they lowered their Debt from 945M to 355 M… what a great use for IPO funds!!
We can keep an eye on their reported TTM adjusted EBITDA/net debt ratio of 3.3x for future reference.

Here are some highlights from when they reported their first quarter as a publicly traded company on 9/4/19.

Dynatrace Reports First Quarter of Fiscal Year 2020 Financial Results

Total Revenue of $122.6 million, an increase of 25%
Annualized recurring revenues increased 43% yoy.
Subscription and Services revenue of $118.8 million, an increase of 36%, representing 97% of total revenue

Dynatrace ® Platform Highlights:
Ended the quarter with 1,578 Dynatrace customers, a sequential increase of 214 from the end of Q4 2019
Dynatrace Dollar-Based Net Expansion rate greater than 120% for the fifth consecutive quarter
Dynatrace ARR represents 75% of total ARR, increasing from 70% of total ARR at the end of Q4 2019


…and i calculate that they will be reporting this upcoming first week in December along with a handful of our SaaS companies that report that week.

Porsche Informatik Selects Dynatrace to Drive Software Innovation

…With Davis™ at its core, Dynatrace® provided Porsche Informatik with the confidence that it could quickly identify problems, and their precise root cause, to expedite resolution before customers were impacted. Only Dynatrace was capable of monitoring every component of Porsche Informatik’s hybrid cloud environment across the full stack, providing precise answers and proactive, actionable user experience insights in a single unified platform…

Finally… for now…

This week, Dynatrace presented at
RBC Capital Markets’ Technology, Internet, Media and Telecommunications Conference

Here is the slide presentation:

This presentation has been well received, i suspect, as Dynatrace rises onto more analyst radar… the DT stock price was 21.35 on Monday and is ~25.62 this morning… 20% in a week, ;^)

Best, kevin c