Dynatrace, Inc. (NYSE:DT) Q3 2024 Earnings Call Transcript

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Rick McConnell: Thanks, Adam. So first on the XenApp, I would say, yes, the intent here is to head towards XenApp and use cloud security posture management as a way to escalate our vulnerability analytics capabilities that we have, and we really, really liked the Runecast team and technology, I should say, we like that technology and team quite a lot. It adds AI and contextual security protection analytics into what we’re doing, which fits nicely into our portfolio, and in particular, it allows us to address the risks of misconfigurations and compliance violations added to our existing vulnerability analytics capabilities. So it is a very, very good fit in expanding it. The broader question you asked, I would simply say that we continue — we have mentioned time and time again in the past to see that observability and application security or conversion.

And the capabilities that we deliver in our platform generally with regard to things like contextual analytics and hypermodal AI, provide very, very strong capabilities in application security as well. So in the outside market, we’ve been focused on leveraging the core elements of our observability platform to do application security better than others in the market in these types of spaces. So we are very enthusiastic about Runecast also continue to be very excited about our investments in AppSec generally.

Adam Tindle: Thank you.

Operator: Thank you. Our final question comes from the line of Will Power with Robert W. Baird. Please proceed with your question.

Will Power: Okay, great. Thanks for fitting me in. I guess, Rick, it would be great to get your perspective on kind of tone of customer conversations that Perform being fresh here. Just how customers that you’re talking to are thinking about, I guess, both budgets and priorities as we kind of head into 2024 here? And then any perspective with respect to how any of that might have changed versus those conversations a year ago?

Rick McConnell: Well, I would simply say that, obviously, Perform customers are a bit self-selected. They are existing — generally existing Dynatrace customers or penetrate prospects. They’ve chosen to be there. So you get that flavor of the market. Having said that, I would say that the conversations with a customer after customer after customer at Perform were absolutely exceptional. And the engagement was phenomenal. They are absolutely leaned in with regard to Dynatrace and the investments they’re making in the Dynatrace platform, and they buy off on this notion that: number one, observability is becoming more and more critical amidst a world in which digital transformation is driving business transformation. And number two, that they can’t do it in a manual way through dashboards and alerting, which leads to number three, that they need a platform that is driving analytics, AI and automation to enable them to do it better than they could do otherwise.

And so that was the type of feedback that we heard is extremely positive. It was simply a fantastic event.

Will Power: Okay, thank you.

Rick McConnell: All right. That brings us to the close. I wanted to thank you all for your engaged questions as usual and your ongoing support. We — as we’ve echoed throughout the course of this call, remain quite bullish about the opportunity that lies ahead. We look forward to connecting with you at upcoming IR events over the coming weeks, and we wish you all a very good day. Thank you.

Operator: This will conclude today’s conference. You may now disconnect your lines at this time, log off your webcast, and thank you for your participation. Have a wonderful day.

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