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PagerDuty Inc Reports Financial Results for Third Quarter Fiscal 2025

authorIntellectia.AI

2024-11-272mins

PagerDuty, Inc. Reports Financial Results for Third Quarter Fiscal 2025

PagerDuty, Inc. (NYSE:PD), a leader in digital operations management, announced its financial results for the third quarter of fiscal 2025, which ended on October 31, 2024.

Key Financial Metrics

Metric Current Quarter Year-over-Year Change Consensus Estimate
Revenue $118.9 million +9.4% $116.39 million
Earnings Per Share (EPS) -$0.07 (GAAP) N/A $0.17
Non-GAAP EPS $0.25 N/A N/A
ARR $483 million +10% N/A

PagerDuty's financial performance has shown solid growth with a year-over-year revenue increase of 9.4% surpassing the consensus estimate. The annual recurring revenue (ARR) showed a robust increase of 10% year-over-year, suggesting stability in recurring customer engagement.

Financial Interpretation

  • Revenue Growth : Solid growth above estimated projections, indicating strong market demand and execution.
  • Profitability : The non-GAAP EPS of $0.25 signifies successful cost management despite a GAAP loss, indicating operational efficiency improvements.
  • ARR Growth : The 10% increase in ARR highlights resilience and growth within its subscription model.

Key Developments and Operational Highlights

  • Significant increase in customers with annual recurring revenue over $100,000, which grew by 6%.
  • Dollar-based net retention rate was 107%, reflecting strong customer retention but a slight decrease from 110% a year earlier.
  • Free and paid customers exceeded 30,000, marking 11% year-over-year growth.
  • Notable “lands and expands” with major corporations including NVIDIA and Cloudflare.
  • Recognition as a Leader in GigaOm Radar for AIOps and Fortune's Best Workplaces.
  • Introduction of AI-powered innovations and participation in significant industry events and studies.

Comments from Officers

Chairperson and CEO, Jennifer Tejada, commented, “PagerDuty delivered a solid quarter with results well above third-quarter guidance. Our focus on stability and improvement across all business segments positions PagerDuty on a strong upward trajectory.”

Forward Guidance

PagerDuty anticipates: - Fourth quarter fiscal 2025 revenue between $118.5 million and $120.5 million, reflecting 7% to 8% growth year-over-year. - Non-GAAP EPS between $0.15 and $0.16, with approximately 93 million diluted shares.

Stock Market Reaction

Following the earnings release, PagerDuty's stock price experienced a positive change of approximately 1.45%.

PagerDuty continues to showcase strong operational execution and sustained revenue growth, enhanced by strategic investments in AI innovations, positioning the company favorably for the upcoming fiscal quarters.

For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.

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