Dynatrace, Inc.DT

Natural and catastrophic events · Climate change and environmental impact

Climate change risks, regulatory compliance, and evolving stakeholder expectations may have a long-term negative impact on our business. The long-term effects of climate change on the global economy and the technology industry in particular are unclear... there are inherent climate-related risks such as natural disasters, infrastructure disruptions, and geopolitical instability.

Economic and market conditions · Consumer spending and confidence

Economic uncertainty or instability in the U.S. or abroad could lead to a slowdown or recession, or the perception that such conditions may occur, and could result in reduced spending on technology. During periods of economic or political uncertainty, our current and prospective customers may reduce or defer operating or IT expenditures.

Market position and competition · Competitive pressure and market share loss

The markets in which we compete are highly competitive, fragmented, evolving, complex, and defined by rapidly changing technology (including, without limitation, new and evolving uses of AI) and customer needs, and we expect competition to continue to increase in the future. Competition could result in increased pricing pressure, reduced profit margins, increased sales and marketing expenses and our failure to increase, or loss of, market share.

Market position and competition · Disruptive competitors and new market entrants

We may also face competition from companies entering our market, which has a relatively low barrier to entry in some segments, including large technology companies that could expand their platforms or acquire one of our competitors. For example, Cisco acquired Splunk in 2024 and Palo Alto Networks acquired Chronosphere in 2026.

Market position and competition · Pricing pressure and margin compression

If the prices we charge for our solutions and services are unacceptable to our customers, our operating results will be harmed... we may experience pricing pressure and be unable to renew our agreements with existing customers or attract new customers at prices that are consistent with our current pricing model.

Innovation and product development · Product development and randd investment risks

If we fail to innovate and do not continue to develop and effectively market solutions that anticipate and respond to the needs of our customers, our business, operating results, and financial condition may suffer... we must continue to dedicate significant resources to our research and development efforts, including significant resources to developing new solutions and solution enhancements before knowing whether the market will accept them.

Customer and revenue · Customer concentration and key customer dependence

To continue to grow our business, we need to attract new customers and increase deployment, usage, and consumption of our solutions by existing customers... our ability to increase sales to existing customers depends on several factors, including their experience with implementing and using our platform.

Customer and revenue · Customer retention and subscription renewal

Our customers have no obligation to renew their agreements, and our customers may decide not to renew these agreements with a similar contract period, or at the same prices and terms. Although our customer retention rate has historically been strong, some of our customers have elected not to renew their agreements with us.

Customer and revenue · Changing customer preferences and behavior

Overall demand and market adoption of the solutions that we offer may not grow as we expect, which may harm our business and prospects... It is difficult to predict customer demand, adoption, churn, and renewal rates for our new and existing solutions.

Strategic execution · Merger acquisition and divestiture risks

We may acquire other businesses, products, or technologies in the future which could require significant management attention, disrupt our business or result in operating difficulties, dilute stockholder value, and adversely affect our results of operations... In the last two years, we acquired Metis, DevCycle, and Bindplane.

Digital transformation and innovation · Artificial intelligence and automation

We have incorporated AI into our platform and AI is changing the competitive dynamics of our industry. Our competitors or other third parties may incorporate AI into their products more quickly or more successfully than us, may invest more in AI development than us, or have access to more advanced AI models or autonomous agents with greater capabilities or broader functionality.

Cybersecurity and data protection · Data breaches and cyber attacks

Security breaches, computer malware, computer hacking attacks, and other security incidents or compromises could harm our business, reputation, brand, and operating results. We have in the past been, and may in the future be, the target and victim of cybersecurity attacks, including social engineering (such as email phishing) and other types of attacks.

Cybersecurity and data protection · Third party data security and vendors

We rely on third-party vendors for both our customer facing AI capabilities and AI-enabled internal tools. These vendors may not meet existing or rapidly evolving regulatory or industry standards and best practices, including with respect to privacy and data security.

Cybersecurity and data protection · Insider threats and access controls

A majority of our employees have the ability to work either partially or fully remote and we also engage service providers who work remotely. Certain security systems in homes or other remote workplaces may be less secure than those used in our offices, which may subject us to increased security risks.

Technology infrastructure · Technology systems and infrastructure failure

Interruptions or disruptions with the delivery of our SaaS solutions, or third-party cloud-based systems that we depend on in our operations, may adversely affect our business, operating results, and financial condition... We have experienced, and may in the future experience, service disruptions, outages, and other performance problems.

Technology infrastructure · Cloud services and data center operations

We currently host our Dynatrace solutions on cloud infrastructure hyperscaler providers, such as AWS, Azure and GCP. Our Dynatrace solutions reside on hardware operated by these providers... any incident affecting a hyperscaler's infrastructure that may be caused by fire, flood, severe storm, earthquake, or other natural disasters could negatively affect our platform.

Technology infrastructure · Disaster recovery and business continuity

Although we have disaster recovery plans, including the use of multiple hyperscaler locations, any incident affecting a hyperscaler's infrastructure... could negatively affect our platform and our ability to deliver our solutions to our customers.

Human capital and workforce · Talent acquisition and retention

We rely on highly skilled personnel and if we are unable to attract, retain, or motivate substantial numbers of qualified personnel or expand and train our personnel, we may not be able to grow effectively... Competition in our industry is intense, and often can lead to increased compensation and other personnel costs.

Human capital and workforce · Key personnel dependence and succession

Our ability to succeed depends in significant part on the experience and expertise of our senior management team. From time to time, there may be changes in our senior management team resulting from the hiring or departure of executives... The loss of a member of senior management team could disrupt our operations and negatively impact employee morale and our culture.

Human capital and workforce · Skills shortage and training requirements

Competition for employees with experience in our industry and with AI and machine learning can be intense, particularly in Europe, where our research and development operations are concentrated and where other technology companies compete for management and engineering talent.