Bridging FY27 ARR

研报英文原文证据摘录

Bridging FY27 ARR

Momentum via Growth Drivers: We believe that DT can sustain core business momentum primarily due

to three key drivers: consumption, logs, and new logo land size. First, we think sustained consumption

growth north of 20%, combined with the maturation of DPS cohorts and an increasing number of

customers approaching renewal, should support improving conversion into ARR growth over time, even

if near-term visibility remains limited. While DT reiterated that ARR and consumption converge over

time and pointed to early signs of improvement within DPS cohorts, we await more demonstrated

evidence that the first cohort coming up for renewal meaningfully demonstrates ARR and consumption

convergence. Second, logs continue to be a key growth driver, with DT having already surpassed the ~

$100 million consumption milestone and sustaining ~100% growth at present. DT highlighted that logs

should continue to grow at a similar rate into FY27, and given the higher dollar base, we think logs

should represent a more meaningful contributor to NN ARR and help support the FY27 bridge. Third, we

think new logo dollar contribution remains strong, supported by larger land sizes, with 4Q averaging over

~$200K, and an increasing mix of $1M+ deals, which we believe reflects improving pipeline quality and

supports long-term expansion opportunities. However, as DT continues to focus on larger, more complex

enterprise deployments and acknowledges that new logo count has not shown similar improvement,

we think this strategy could introduce greater variability in near-term deal timing. Net, we think these

factors support underlying longer-term momentum in DT’s core business.

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