So it kind of varies, it varies by customer, it varies by industry. But I would say customers continue to prioritize observability. And, you know, until they get better visibility into their own environments, I think that kind of what we’re seeing is probably going to remain consistent. I will say, as I said earlier, that we are quite optimistic that we continue to see growing pipeline, not just with new logos, also expansions, but new logos in particular, I think suggests that customers are starting to make observability architecture decisions. And I think that’s a net positive for Dynatrace, but I think we’re well-positioned in that space.
Will Power: Thank you, nice job on the results.
Jim Benson: Thanks, Will.
Operator: Our next question comes from the line of Raimo Lenschow with Barclays. Please proceed with your question.
Raimo Lenschow: Thank you. Actually, can I stay on that topic and maybe we kind of up level it a little bit? I mean, like look in tough times, usually it’s you’re leading in on the installed base and the new logos are coming in a bit slower and it’s tougher to sign them there. But with you, it seems almost the other way. How much of that is driven on the new logo side in terms of people understanding your broader message? There’s a lot of competitors that got taken out, so there’s a lot of disruption in the market. So what’s driving that? And you obviously did a lot more work on kind of getting new logos started to work with partners better, et cetera. Like can you speak to that a little bit because that’s kind of different than what you hear from anyone else?
Rick McConnell: Yes, I’ll take that. So I want to be clear, we’re continuing to see healthy growth with installed base customers. So I just want to make sure we’re clear that we continue to see good growth with the installed base customers. And in particular, we see customers that where our value proposition is really, really strong, which is large, complex environments, those customers, their expansion rates are growing at an even more increased pace than kind of the average for the company. And on the new logo front, it’s more — customers are seeing pain points. They’re seeing pain points with either their existing solutions, which could be competitor solutions, or existing tooling. And it’s cumbersome when they’re seeing outages.
It’s difficult to ascertain where it is, and there’s people chasing alerts that, so I would say, observability, customers are making more and more architectural decisions. And when they’re making architectural decisions and they’re evaluating vendors, especially in large, complex environments, we score very well. And so I think we’re seeing a pipeline relative to that with customers that are starting to make, I would say platform decisions. They’re making platform decisions in different areas, and they’re making decisions on observability as kind of a platform, observability and application security. So I think we’re well-positioned. And I think the sales organization is appropriately going after that opportunity. And as I said for the last few quarters, we’re focusing on the quality of the land more so than the number of new logos, because we find that the quality of land results in better expansion, longer term.
Raimo Lenschow: Yes, that’s perfect, yes, that’s very clear. And I know it’s tough with DPS to kind of go into different parts, but what are you seeing in terms of, we talked a little bit about logs on Grail, et cetera, but in terms of you kind of being able to be broader than just APM in terms of getting infrastructure more logs into the deals, like when you talk about the big architecture decisions, is that people kind of understanding the full observability package that you guys are offering and kind of going that way, or is it still, what are you seeing there on the more than newer areas where you like infrastructure logs? Thank you, and congrats from me as well.
Rick McConnell: Thanks, Raimo. What I would say on the DPS front, then in particular on the penetration of multi-modules is that a year or so ago, we were around 50% or so, customer lands were at three plus modules, that’s now two-thirds. So we continue to see the broad platform play. We certainly expect DPS to be a key component of that by facilitating expansion across the portfolio of modules that we have for customers to utilize a broader array of the Dynatrace platform. So DPS really does facilitate this multi-module deployment in use.
Raimo Lenschow: Okay, perfect. Makes sense. Thank you, congrats.
Rick McConnell: Thanks, Remo.
Operator: Our next question is from the line of Kash Rangan with Goldman Sachs. Please proceed with your questions.
Kash Rangan: Thank you very much, congrats. Rick, I applaud you on stepping up to go to market investments really, really well timed. I’ve got one for you, one more financial question. When you look at the different initiatives to drive growth, you’ve got the product initiatives, Grail, you’ve got app security, and you’ve got the partnerships with the hyperscalers, SI. Are the growth through the companies very solid in whatever you printed, which means that the underlying core APM business is probably a little bit slower. Maybe that will pick up in the macro clear. So any thoughts on how the company’s exposure to growth opportunities looks like as you come out of this malaise? Could we see the underlying X growth acceleration initiatives really start to come back to the forefront?
And a financial question is, how do you measure return on investment, whether it’s investing a dollar and go to market or research and development? What are the ways in which you quantify the return you’re looking for? That’s it for me. Thank you so much.
Rick McConnell:
