Asset Manager Investing in Global Technology Sector

We're an asset manager allocating 100% of our capital into public companies and cryptocurrency assets driving disruptive innovation globally. We serve as a family office of an Asia-based HNW family whose key members have made their fortune in the technology industry and are believers in technology as the key enabler of disruptive innovation. We seek to continue the family's legacy in creating and preserving wealth through technology investing.

Our small investment team is made up of diverse professionals who researches, identifies, and executes relevant opportunities. While we are not accepting outside clients and investors at the moment, we occasionally share some of our internal investment memos, market commentaries, and analysis here.

Wednesday, June 17, 2020

Q2.2020 - Dynatrace: Driving Outperformance Through Bundling Strategy

  • 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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