Asset Manager Investing in Global Technology Sector

We're an asset management firm allocating our capital into asset classes benefiting from technological innovation and applications globally. We serve as a family office of a tech professional who has spent over a decade as an entrepreneur, operator, and venture investor across Asia and the US.

Our small team is made up of diverse investment professionals who research, identify, and execute relevant opportunities. We occasionally share some of our investment memos, insights, 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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