MAAT INDEX

CLAIM #68486 · Dynatrace Holdings LLC (DT) · 2025Q1 earnings call · May 2, 2025 · due Mar 31, 2025

So, I'd say more in the back half of the year, we have a much more substantive set of renewal activity in Q3 and Q4, that our expectation is if we continue to see traction and consumption grow at these trends, that we could be in a good position for expansion.

Jim Benson · CFO

PENDING
graded after results covering Mar 31, 2025 are reported

In context

Jim Benson (CFO): Yes, I'll start and then maybe Rick can comment. So, I didn't mean to imply that I thought it would be flat from the current levels. Actually, if you look at the guide, the guide would actually suggest that it'll moderate from here. So, I do want to be clear on that. My point is, I do think our goal is to stabilize NRR this year. And we think that DPS as a contracting vehicle is a great way to have customers leverage more of the platform, which will be kind of one of the catalysts for that. Obviously, you have to have the products, which we think we do, to be able to fuel that. So, just to clarify on that, but your observation is fair. I would say where we're at is there has been a moderation in NRR over time. You’ve got to stabilize before you accelerate. I would say relative to the demand environment, the demand environment is healthy. However, when you look at existing customers maybe versus new logos, but does - existing customers tend to do an expansion close to a renewal period. That's just the nature of how customers operate. And so, expansions tend to coincide very closely with a renewal or close to a renewal. And so, there's going to be a level of variability of when expansions happen. And because we don't have a huge renewal component in the first quarter that - I say there's only - even if you have significant expansion for those customers in the quarter, it's not going to move the metric in a material way just because you don't have the volume of renewal activity. So, I'd say more in the back half of the year, we have a much more substantive set of renewal activity in Q3 and Q4, that our expectation is if we continue to see traction and consumption grow at these trends, that we could be in a good position for expansion. Again, we're being cautious, but hopefully that provides a little bit of color. And Rick, I don't know if you have anything else to offer.

Verify independently

SEC filings for DT · Claim quote is verbatim from the 2025Q1 earnings call.