Dynatrace (DT), a multi-cloud software intelligence platform, will soon change how it calculates Annual Recurring Revenue (ARR), a company preferred key metric. In its latest quarterly filing, Dynatrace inserted one new sentence revealing what it will exclude from the calculation and when:

“Beginning in fiscal 2023, this calculation excludes the headwind associated with the Dynatrace perpetual license ARR given diminishing impact of perpetual license ARR.”

The change will also inflate another company preferred key metric, Net Expansion Rate.