Dynatrace, Inc.

“Dynatrace is a high-quality #2 in enterprise observability with genuine switching costs, 98% gross retention, and a clean $1B net cash balance sheet, but NRR compression from 120% to 111%, structural deceleration as the legacy migration tailwind fades, mediocre management capital allocation confirmed by Starboard's activist entry, and true owner FCF of only ~$150-180M after $350M annual SBC make the business expensive at 60-70x true owner FCF — a TRACK at current prices with a more compelling entry around $30-33.”