First Quarter Fiscal 2024 and Other Recent Business Highlights:

Financial Highlights:

•Total ARR of $1,294 million, up 25% on a constant currency basis

•Total Revenue of $333 million, up 25% on a constant currency basis

•Subscription Revenue of $316 million, up 27% on a constant currency basis

•GAAP Operating Income of $34 million and Non-GAAP Operating Income of $92 million

•GAAP EPS of $0.13 and Non-GAAP EPS of $0.27, both on a dilutive basis

•Analyst recognition: Dynatrace was named a Leader and positioned highest for Ability to Execute and furthest for Completeness of Vision in the 2023 Gartner Magic Quadrant for Application Performance Monitoring and Observability. This is the 13th consecutive time that Gartner has named Dynatrace a Leader in this report. In addition, Dynatrace was ranked #1 in all six Use Cases for its platform in the 2023 Gartner Critical Capabilities for Application Performance Monitoring and Observability report.

•Platform expansion: We announced an expansion of our Davis AI engine to deliver the observability and security industry’s first hypermodal artificial intelligence (AI), converging fact-based predictive and causal AI insights with new generative AI capabilities. We also signed a definitive agreement to acquire Rookout to extend the value the Dynatrace platform delivers to engineers and developers working in cloud-native environments with capabilities that enable live and secure debugging of actively running code. This addition will enable developers to improve the quality and security of their releases.

•Extended partnerships: We continue to build momentum with our strategic global system integrators (GSIs). Sales pipeline contribution from one of our largest strategic GSI partners more than doubled when compared to last year. In addition, we announced a new multi-year consumption commitment and go-to-market partnership with Microsoft, which includes joint sales enablement and marketing initiatives to further increase adoption of the Dynatrace platform on Microsoft Azure. We also expanded our collaboration with Red Hat with new integration capabilities between Dynatrace and Red Hat Event-Driven Ansible to automate DevSecOps use cases, including closed-loop problem and security remediation, application healing, and incident response.

* Use of Non-GAAP Financial Measures

In our earnings press releases, conference calls, slide presentations, and webcasts, we may use or discuss non-GAAP financial measures, as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our website at ir.dynatrace.com.

Dynatrace will host a conference call and live webcast to discuss its results and business outlook for investors and analysts at 8:00 a.m. Eastern Time today, August 2, 2023. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with conference ID# 13739866. The call will also be available live via webcast on the company’s website, ir.dynatrace.com.

An audio replay of the call will also be available until 11:59 p.m. Eastern Time on August 16, 2023, by dialing (877) 660-6853 from the U.S. or Canada, or for international callers by dialing (201) 612-7415 and entering conference ID# 13739866. In addition, an archived webcast will be available at ir.dynatrace.com.

Annual Recurring Revenue (“ARR”) is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of Total ARR any revenues derived from month-to-month agreements and/or product usage overage billings.

Constant Currency amounts for ARR, Total Revenue and Subscription Revenue are presented to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign exchange rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year.

Dollar-Based Gross Retention Rate is defined as the ARR from all customers as of one year prior, less contraction and customer churn, divided by the total ARR from one year prior. This metric reflects the percentage of ARR from all customers as of the year prior that has been retained.

Dollar-Based Net Retention Rate is defined as the Dynatrace® ARR at the end of a reporting period for the cohort of Dynatrace® accounts as of one year prior to the date of calculation, divided by the Dynatrace® ARR one year prior to the date of calculation for that same cohort. Our dollar-based net retention rate reflects customer renewals, expansion, contraction and churn, and excludes the benefit of Dynatrace® ARR resulting from the conversion of Classic products to the Dynatrace® platform. Effective the first quarter of fiscal year 2023, we began to exclude the headwind associated with the Dynatrace perpetual license ARR given diminishing impact of perpetual license ARR. We believe that eliminating the perpetual license headwind results in a dollar-based net retention rate metric that

Dynatrace Customers are defined as accounts, as identified by a unique account identifier, that generate at least $10,000 of Dynatrace® ARR as of the reporting date. In infrequent cases, a single large organization may comprise multiple customer accounts when there are distinct divisions, departments or subsidiaries that operate and make purchasing decisions independently from the parent organization. In cases where multiple customer accounts exist under a single organization, each customer account is counted separately based on a mutually exclusive accounting of ARR.

Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures (reflected as "purchase of property and equipment" in our financial statements).

Dynatrace exists to make the world's software work perfectly. Our unified platform combines broad and deep observability and continuous runtime application security with the most advanced AIOps to provide answers and intelligent automation from data at an enormous scale. This enables innovators to modernize and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences. That is why the world's largest organizations trust Dynatrace® to accelerate digital transformation.

This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including Mr. McConnell's remarks and statements regarding management’s expectations related to the expansion of the company's Davis AI engine, the proposed acquisition of Rookout (the closing of which is subject to customary closing conditions and is expected to occur in the company's second fiscal quarter which ends on September 30, 2023), the company's extended partnerships, including with Red Hat and Microsoft, future financial and operational performance and operational expenditures, expected growth, and business outlook, including our financial guidance for the second fiscal quarter and full year 2024. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "will," “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our ability to maintain our revenue growth rates in future periods; market adoption of our product offerings; continued demand for, and spending on, our solutions; our ability to innovate and develop solutions that meet customer needs, including through Davis AI; the ability of our platform and solutions to effectively interoperate with customers’ IT infrastructures; our ability to acquire new customers and retain and expand our relationships with existing customers; our ability to expand our sales and marketing capabilities; our ability to compete; our ability to maintain successful relationships with partners; security breaches, other security incidents and any real or perceived errors, failures, defects or vulnerabilities in our solutions; our ability to protect our intellectual property; our ability to hire and retain necessary qualified employees to grow our business and expand our operations; our ability to successfully integrate newly acquired businesses and offerings; the effect on our business of the macroeconomic environment, associated global economic conditions and geopolitical disruption; and other risks set forth under the caption “Risk Factors” in our Form 10-Q filed on August 2, 2023 and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

(1) Prior period results have been updated to allocate depreciation expense to operating expenses based upon location and headcount.

(1) Prior period results have been updated to allocate depreciation expense to operating expenses based upon location and headcount.