- Product bundling is at the core of Dynatrace's go-to-market approach.
- The strategy has been successful and remains a differentiating factor, especially in the enterprise segment. Dynatrace has over 2,300 blue-chip enterprise customers.
- The strategy also drives solid growth and profitability. ARR more than doubled YoY in FY 2020, while the 83% gross margin is best-in-class.
Last October, we discussed the attractive opportunity for long-term tech and growth investors considering Dynatrace’s (NYSE:DT) transition into a SaaS player, highlighting the potential upside driven by the strong ARR growth and enterprise product-market fit. Since then, the share price has almost doubled to ~$37 per share, with the company ending the FY 2020 with an impressive ARR growth of 42% and 2,373 enterprise customers. In this note, we will take a closer look at the company’s unique go-to-market approach, which in our view remains a differentiating factor and a strong value proposition in the enterprise market.
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