Dynatrace, Inc

In spite of the challenging macro environment in the past quarter, Dynatrace managed to deliver an all-around beat in its last result. Constant currency subscription revenue growth and adjusted ARR growth increased by 29% over the previous year. Digital transformation and cloud modernization initiatives grew quickly. As a result, manual data troubleshooting and dashboard-based analytics are becoming increasingly difficult due to the explosion in data volume and complexity. Besides that, they added 85 new AppSec clients throughout the quarter, including many 6-figure purchases. Dynatrace also keeps improving its pricing and packaging strategies, which may help the company reach its full potential and hasten growth. We give Dynatrace a ‘Hold’ rating with a revised target price.