Dynatrace Results Presentation Deck slide image

Dynatrace Results Presentation Deck

Appendix - Definitions 1. Annual Recurring Revenue "ARR" is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of Total ARR any revenues derived from month-to-month agreements and/or product usage overage billings. 2. Adjusted ARR is defined as ARR excluding the impact of foreign exchange rate fluctuations that occurred over the trailing twelve- month period. This calculation also excludes the headwind associated with the Dynatrace perpetual license ARR that rolled off in the trailing twelve-month period. 3. Adjusted ARR Growth is defined as year-over-year growth in Adjusted ARR divided by ARR as reported. 4. Subscription Revenue is defined as Software-as-a-service ("SaaS") agreements, Dynatrace® term-based licenses, for which revenue is recognized ratably over the contract term, Dynatrace perpetual licenses, which are recognized ratably over the term of the expected optional maintenance renewals, which is generally three years, and maintenance and support agreements. 5. Unlevered Free Cash Flow is defined as net cash provided by (used in) operating activities and adjusted to exclude cash paid for interest (net of tax), non-recurring restructuring and acquisition related costs, along with costs associated with one-time offerings and filings, less cash used in investing activities for acquisition of property and equipment. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses. 6. Free Cash Flow is defined as net cash provided by (used in) operating activities and adjusted to exclude cash used in investing activities for acquisition of property and equipment and may from time to time be subject to adjustments for non-recurring items. © 2022 Dynatrace, Inc. All Rights Reserved 13
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