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This statistic highlights Dynatrace’s Number of Customers from Q1 2019 onwards, split across license, service and subscription segments.
The following table shows Dynatrace’s Revenue by Segment:
|Revenue by Segment||Q2 2021||Q1 2022||Q2 2022||Contribution in Q2 2022|
(All figures are in millions, except percentages)
Dynatrace generates the highest revenue from subscription services. This revenue consists of:
The SaaS subscription fees and term licenses are typically invoiced annually in advance. The subscription revenue is recognized at a rate over the term of the applicable agreement, provided that all other revenue recognition criteria have been satisfied. Over time, Dynatrace expects that subscription revenue will increase as a percentage of total revenue.
The subscription revenue increased by $54.9 million, or 34.8%, on a YoY basis. Even on a QoQ basis, there was a growth of 8.2%. This was primarily due to the growing adoption of the Dynatrace® platform by new customers along with their existing customers who expanded their use. As to 93% of total revenue in the last year, this segment contributed 94% of total revenue in Q2 2022. There has been a linear growth in the revenue generated during the last 3 years.
The revenue that is generated from helping customers deploy the software in highly complex operational environments and train their personnel consists of service revenue.
This revenue increased by 31.3% on a YoY basis, as compared to 4.4% on a QoQ basis. The revenues associated with professional services are recognized, as the services are delivered. This segment has seen stable growth in the past 3 years, with the absolute return being 49%.
The revenues that are recognized from sales of perpetual and term-based licenses of Classic products constitute License revenues. These are sold only to existing customers.
This segment of revenue has witnessed a decline during the past 3 years. This was primarily due to the decline of sales of Classic products, as the existing customers converted to the Dynatrace® platform. These Classic products are no longer being sold to new customers. As we can see from the graph, the total revenue generated from this segment has been declining in the past 3 years, with the revenue in the most recent quarter being nil.
About the company
Dynatrace, Inc. is a global technology company, that provides a software intelligence platform, purpose-built for dynamic multi-cloud environments. This will help organizations embrace the cloud to affect their digital transformation, with this all-in-one intelligence platform, designed, addresses the growing complexity faced by technology and digital business teams. With automation and intelligence at its core, this platform delivers precise performance and security of applications to its customers.
The underlying infrastructure, and the experience of all users, enable teams to innovate faster, simplify and secure cloud complexity, and collaborate more efficiently. The platform is designed such that, it allows the customers to modernize and automate IT operations, develop and release high-quality software faster. As a result, the products offered by Dynatrace are trusted by approximately 3,000 customers in over 90 countries. These customers are involved in diverse industries such as banking, insurance, retail, manufacturing, travel, and software.
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