Dynatrace : Business Overview August 2020 Presentation

This presentation includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding management's

expectations of future financial and operational performance and operational expenditures, expected growth, and business outlook, including our financial guidance for the second quarter and full year of fiscal 2021, statements regarding the impact of the COVID-19 pandemic and related economic conditions on our business and results of operations; and statements regarding the size of our market and our positioning for capturing a larger share of our market. 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 "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, the effect of the COVID-19 pandemic on our business operations and demand for our products as well as its impact on general economic and financial market conditions; our ability to maintain our subscription revenue growth rates in future periods, our ability to service our substantial level of indebtedness, market adoption of software intelligence solutions for application performance monitoring, digital experience monitoring and infrastructure monitoring, continued spending on and demand for software intelligence solutions, our ability to maintain and acquire new customers, our ability to differentiate our platform from competing products and technologies; our ability to successfully recruit and retain highly-qualified personnel; the price volatility of our common stock, and other risks set forth under the caption "Risk Factors" in our Form 10-K filed on May 27, 2020 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.

This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other data about the Company's industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither the Company nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of the Company's future performance and the future performance of the markets in which the Company operates are necessarily subject to a high degree of uncertainty and risk. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the Company's market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.

This presentation includes non-GAAP financial measures which have certain limitations and should not be considered in isolation, or as alternatives to or substitutes for, financial measures determined in accordance with generally accepted accounting principles in the United States ("GAAP"). The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. The Company's presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that its future results will be unaffected by these or other unusual or non-recurring items. A reconciliation of these non-GAAP financial measures to

the most directly comparable GAAP financial measures is included in the Appendix to these slides.

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2

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Company ARR1 Growth ($M)

$573

$45

$528

$403

$120

$280

$195 $283

$85

Dynatrace ARR		Classic ARR

Customers1 on Dynatrace Platform		Strong Margins & Cash Flow
2,373

Enterprise Customer Focus

1,364

574

Total Dynatrace Customers

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2.

1.

3.

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"Ultimately, we don't do anything that matters without Dynatrace."

- Chief Architect

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•

•

•

"Our aim is to be like electricity unseen and always on. Automating operational activity is enabling us to reduce manual toil and focus on things that matter."

- Center of Excellence Lead

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Insurance / Financial Services		Retail / Commerce					Technology / Services

Telecommunications / Media		Travel / Transportation		Manufacturing

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+

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Demand Gen | Free Trial | Direct Sales		Capabilities | Modules | Scale		Technology Partners | Go-To-Market Partners

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Total ARR1 ($M)		Quarterly Total ARR ($M)

of total

Q1-19Q2-19Q3-19Q4-19Q1-20Q2-20Q3-20Q4-20Q1-21

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Dynatrace	Initial ARR	Strong Dynatrace	Avg
Platform Customers1	Land2	Net Expansion Rate1	ARR/Customer

TTM Growth (appx)
560 New logos	Up 13% YoY	Last 9 Quarters	Up 11% YoY
320 Conversion & Churn
880 Total

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Annual Total Revenue ($M)

$546

2%

9%

$431

$398 9%

10%

25%

10%

89%

81%

65%

Quarterly Total Revenue ($M)

											$143	$151	$156
											2%	7%
									$129	3%	8%
								$123	7%
									2%
				$115	$116
				3%	8%
		$102				6%	9%
	$98		10%
		10%
				10%
			9%
	11%													Subscription
	10%
	10%
											90%	90%	93%			of total

				88%	90%
		80%	84%
	81%
79%

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Non-GAAP Gross Profit Margin	Continued Investment in Innovation &
	Commercial Expansion

88%88%

85%

81%	83%	84%

15% 15% 14%

27%	26%	36%	33%	31%
25%

12% 11% 11%

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Non-GAAP Operating Income and Unlevered Free Cash Flow (uFCF) 1 ($M)

$250

$200

$185

$150

$150$154

$130

$100

$79

$50

-

$141

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3.3x

3.1x

2.7x

Net Debt1,2

2.1x

1.6x

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Three Months Ended

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FY'19	FY'20	Q1'21 TTM

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