But as you pointed out, we see them extremely complementary. So that's the way we see it today, and that's why I say over time, it's going to continue to scale out in monetization as we add additional value to the solution or to the module. Good afternoon and thank you for joining us today to review Dynatrace's second-quarter fiscal 2020 financial results. Here's what the stock market is predicting for 2021, Dow Jones Falls After Trump Makes Stimulus Demand, Nio Stock Down Again, Blink Charging Signs New Deal As Auto Giants Back EV Incentives. The connective tissue between sort of the infrastructure and application monitoring with driving better business outcomes is clearer and more straightforward. For the second quarter, ARR was $470.9 million, an increase of 44% year over year. That's why we call it the microservices wall because that's what customers hit. It’s been a year of fear for many Americans. We don't just try to put more metrics out than somebody else. This is something that we expect to continue benefiting from in the foreseeable future as we've barely scratched the surface of cloud application expansion. GE’s stock jumps after two Wall Street analysts raise their targets by more than 40%, Berkshire's Charlie Munger Warns Against Market Frenzy, Expects Lower Returns In Next Decade, Bank of America Flags Sell Signal for Stocks as Investors Rush Out of Cash, Dow Jumps 330 Points As Apple Rallies; McConnell, Pelosi To Meet On Stimulus Deal, Warren Buffett's 6 tricks to teach kids about money, IRS is ‘setting the trap’ for bitcoin and virtual currency investors on 2020 tax form. That's what we believe we can achieve as we build out the functionality in this area. The value is certainly extremely high when you can bring business metrics tied with performance and user experience together in real-time for digital business owners. With a large TAM in front of us and a market-leading position, we believe the company continues to be very well positioned. As we are still in the early innings of Dynatrace adoption, most of our expansion is driven by customers deploying our platform into new application stacks. As a result of these changes, total gross margins have increased, as I just mentioned. For the quarter, as expected, Classic license revenue was down to $2.7 million and represented only 2% of our quarterly revenue as we wind these products down. We are consistently winning new cloud business against all competitors. On the one hand, technological changes impact businesses, but on the other hand, Berkshire owns the Burlington Northern railroad. There are two ARR growth drivers in our business. The other modules are what we've talked about is expand plays and the cross-selling into the infrastructure-only hosts, which we consider also part of logs going to that offering for us. Our key financial metric focused on business momentum is annual recurring revenue. And with our powerful AI engine, Davis, at the core of our platform Dynatrace Digital Business Analytics instantly surfaces answers to degradations and anomalies with precise problem determination across the entire delivery chain so that human action can be taken rapidly to resolve issues before users and revenue are impacted. And so, could you kind of flesh out how like a Google Analytics and a Dynatrace are complementary not competitive? But there’s a dark side to Dow 30k –and it’s going to take 99% of Americans by surprise. Customers are excited about it because it gives them a direct connection between some of this sort of metrics and problem determination, items under the hood directly with business outcome metrics. And I'm really excited about where we are in a competitive position at the right time in the market as this transition to enterprise cloud and the dynamism of these orchestrated workloads -- microservices workloads really hit production at a high level. At least one Tesla analyst says the company's lofty stock price should come crashing down to $60 to $80 a share. The reason a customer -- first, the reason integrators or sales folks land, they will land in full stack application side where folks have sort of a high pain. Brokerages expect Dynatrace, Inc. (NYSE:DT) to post $0.13 earnings per share (EPS) for the current quarter, according to Zacks Investment Research. Once again, during the quarter, over 200 new customers have joined the Dynatrace platform family. Innoviz looks to make a splash in the Lidar sensor market. We expect third quarter non-GAAP operating income to be in the range of $30 million to $31 million and non-GAAP EPS of $0.06 to $0.07 per share. If I could squeeze one more product one in. Find the latest Dynatrace, Inc. (DT) stock quote, history, news and other vital information to help you with your stock trading and investing. And our next question will come from the line of Matt Hedberg of RBC Capital Markets. Once again, in Q2, our net expansion rate comfortably exceeded 120%. What we try to do is actually solve customer problems and help them drive better business outcomes. "Frenzy is so great, and the systems of management, the reward systems, are so foolish," he added. So that continues to be the strongest. We will continue to confirm this net expansion rate on a quarterly basis, and we plan to share this actual net extension value at the end of the fiscal year. December 8, 2020 December 8, 2020. For the fiscal year, we are increasing ARR guidance to a range of $550 million to $555 million, representing year-over-year growth of 36% to 38%. The exciting thing is that while the land is nice, it's the expansion that has accelerated for us versus our Classic product world. Has the stock market come on too far, too fast? Dynatrace blog. Overall, we have had a very good line of sight to completion, and we are very pleased with the success of the program and the benefits that have been realized by our customers once on the new platform. What I was alluding to as far as integrations with some of these other solutions that the business side of the house utilize day to day, I'm alluding to the sort of tighter integration with some of these other tools like a Google, where they're complementary with each other and brought together and connected, they can be a lot more powerful than each one sort of separate on their own. Circling back to total ARR. And those at the very top end, most customers are really are in that 5%, probably on average, a growing number getting up to 10% because the expansion of our new platform is so easy. With that, we will open the call for questions. And the follow-up is just in regard to pricing structure in logging, how do you guys feel about that given where Datadog is and also, the changes being made at Splunk? Our next question will come from the line of Richard Davis of Canaccord. For the quarter, we had 270 million diluted weighted average shares outstanding. We also recently added Jill Ward to our Board. We are now left to 1,828 customers on the new platform, an increase of 250 from a quarter ago, and more than double from a year ago. I wanted to go back to some of the earlier conversation in the prepared remarks about big digital transformation project as an opportunity for Dynatrace to come in and really help customers execute on their vision with moving applications into the cloud and then having the sophistication to manage and monitor those applications. Information on stock, financials, earnings, subsidiaries, investors, and executives for Dynatrace. Considering the fact that the majority of applications at our customers still lack instrumentation, we continue to expand our value proposition and use cases, as John discussed earlier, and our enterprise customers continue to expand their portfolio of cloud-based applications as they digitally transform their business. He doesn't like the idea of everyone getting sucked into finance and get rich by outsmarting the rest of the world in marketable securities.Munger expects market returns in the next 10 years to be lower than the last 10. You offer a separate SKU there, obviously. Dynatrace Holdings LLC (NYSE:DT)Q2 2020 Earnings CallOct 30, 2019, 5:00 p.m. This is the sixth straight quarter we've exceeded this mark. Ladies and gentlemen, thank you for standing by, and welcome to the Dynatrace second-quarter 2020 earnings conference call. So, we have some very good relationships with the global SI base as well as regional cloud integrators that have sprung up around what is OpenShift or Cloud Foundry, AWS, Azure, et cetera. It really is a tribute to our world-class engineering led by Bernd Greifeneder, our CTO and Founder, and the next-generation architecture he and his key architects reimagined five years ago. Well, our business analytics are directly connected with performance, user experience, and connected all the way down into infrastructure and virtual network elements that may or may not be affecting performance issues. After looking at a number of cloud monitoring solutions, the insurer selected Dynatrace as they've determined that it was the only platform that could show them the cost of outages in the context of application performance and how degradations and performance impacted their call center operations. Munger said that the railroad is the most old-fashioned business he can think of and that it has been successful "not by conquering change but by avoiding it. And we also added support for the clustering of clusters, including cross-cluster distributed tracing or scalability without limits. Finally, unlevered free cash flow for Q2 was $27.2 million, and it was $174.7 million on a trailing 12-month basis. So, we're seeing those customers, when they move off of Classic, expand on to the Dynatrace platform. With that said, we remain focused on investing for long-term growth and plan to reinvest some of the revenue upside we expect for the full year back into the business which is reflected in our guidance. You'd be sitting on $612,162 if you invested $1k in each of these stocks picked by Motley Fool. And it's as fast as we can get out there and have customers to suspend disbelief just long enough to believe that something else, something out there could actually do all this. Five analysts have provided estimates for Dynatrace’s earnings. Maybe not initial sale, but how do you see that opportunity progressing relative to what those customers who bought it, either DEM or ACM plus subscription on logging. The question is, where are their customers in terms of understanding that in terms of like the microservices wall that you're talking about and that eventually a lot more stuff has to come to you. What we see in our world, as you know, we land with APM sort of as a core strength, the application, user-experience segments. We don't just do observability, we actually do automation and intelligence, which drive greater business value. Total revenue is now expected to be in a range of $533 million to $535 million, an increase from our prior guidance of $521 million to $524 million. Recent Earnings Call Transcripts. Now let me turn to our guidance, which has been increased due to the strength of our second-quarter results, combined with our continued positive outlook and the momentum of our business. And second, we believe the completion of this process will further improve the productivity of our sales organization as the conversion distractions end and they can refocus on landing new customers and extending them across more applications and more use cases. But it's a key part of our sales motion. Based on cloud optimization savings alone, the company calculated a payback for their Dynatrace investment of less than six months. That's true foot for an expansion. And then seeing the net expansion north of 120% is great. So, in summary, our execution across our key performance indicators remain strong. Learn more. 5 Replies. As a result, we have removed the impact of the spin tax from our non-GAAP net income and unlevered free cash flow calculations. Thank you, everyone. At time of IPO, we added two outside Board members, and Steve Lifshatz, CFO of Lytx, and prior to that, Fleetmatics; and Mike Capone, CEO of Qlik, both accomplished businessmen and directors. I think you mentioned pretty healthy new customer activity, but just curious if you can quantify that and especially in the context of the acceleration in customer adds. A number of our early adopter customers are using this functionality today, including fashion retailer outlets. The world has really changed," he quipped. Classic ARR has now declined to $94 million down $17 million from a quarter ago and now only represents 20% of total company ARR. Q2 2019 Dynatrace, Inc. Earnings Conference call 09/04/2019 05:00 PM (EDT) Latest calls Page 1 of 1 Showing 1 – 4 of 4 calls No events. Dynatrace Holdings LLC (DT) Q2 2021 Earnings Call Transcript. Dynatrace’s growth—8% year-over-year for fiscal 2019—is slightly outpaced by AppDynamics, Rich said, but it has plenty of room for growth … This assumes approximately 282 million diluted weighted average shares outstanding for the third quarter. So just trying to get some of the color on what you're seeing there, too. Investor's Business Daily. ET. Commenting on the recent surge in tech companies' value, Munger said he has never seen anything like it.Munger compared Apple Inc (NASDAQ: AAPL) to John D Rockefeller's empire. If we quickly break down these two ARR growth drivers, during the quarter, we added 250 net new Dynatrace customers, ending the quarter with 1,828 Dynatrace customers. Cumulative Growth of a $10,000 Investment in Stock Advisor, Dynatrace Holdings LLC (DT) Q2 2020 Earnings Call Transcript @themotleyfool #stocks $DT, This Cloud Pioneer Is Ushering in a New Cybersecurity Trend in 2021, Why I Just Purchased Shares of AI Cloud Observability Company Dynatrace, Dynatrace Holdings LLC (DT) Q2 2021 Earnings Call Transcript, DataDog Rival Sumo Logic Files for IPO to Get in on the Rally, Copyright, Trademark and Patent Information. Everybody sort of sits on the surface and sort of bubbles along, Google, Adobe, etc. You talked about the digital experience, seeing attach rates ticking up. This optimism is reflected in the increased top line guidance that Kevin will detail in a few minutes. Let me now turn to four major advancements made in our fiscal Q2. We also realized a modest upward expense leverage in the second quarter, and therefore, non-GAAP operating margin was 23%, up from 17% in the second quarter of '19. Good question. Certainly, seeing ARR accelerate at scale is impressive, and I think in your prepared remarks, you're clearly having success converting Classic customers. Our healthy RPO expansion has benefited from our move to a subscription-based news combined with an increase in the duration of our new subscription agreement. But still early days, and there's still a lot of headroom just on that application side before you even get to the cross-sell into additional ITOM use cases. All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Earnings Call Transcripts… So, what we do is we surface and connect this digital business data with that entire full-stack footprint. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Maybe the last thing I ought to say in the competitive landscape front is we really don't overlap, certainly not yet, with some of these other competitors coming out of the infrastructure space. One of the most powerful brought to market in Q2 was a doubling of capacity of a Dynatrace cluster, which now scales to 50,000 hosts per cluster. The more someone understood about interest rates, inflation, risk diversification and other financial concepts, the less likely they show signs of financial “fragility” at a time of serious money pressures for many people across the country, a new study concludes. We believe this balance, combined with our focus on investing aggressively in commercial expansion and continuous innovation, provides Dynatrace with attractive durability over the long term. You saw a nice uptick in new customers in the quarter versus last quarter and well above where you were in 4Q. Sure. So it's been a great advantage to us as we move people across on to the Dynatrace platform. Congrats on the quarter. So, from a competitive landscape perspective, we haven't seen much change, honestly, since we last talked. “He comes in on his private plane and he’s here and then he’s gone. During their proof of concept, something we do with all new customers to demonstrate the Dynatrace difference, they discovered the power of Dynatrace's explainable AI engine, Davis, which continually learns what normal performance is, processing billions of dependencies in real time to serve up precise answers that were beyond their team's ability to quickly identify. The Mortgage Program for Costco Members could help some members buy or refinance a home through a multilender platform operated by CrossCountry Mortgage. Is the stock a buy now? And I'd say, we're in line with sort of industry-standard churn rates. 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