PagerDuty Reports Second Quarter Fiscal 2025 Financial Results

authorIntellectia.AI Updated: 2024-09-03
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Illustration by Intellectia.AI

PagerDuty Reports Second Quarter Fiscal 2025 Financial Results

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

Key Financial Metrics

Financial Metric Q2 FY2025 Q2 FY2024 YoY Change Consensus Estimates Beat/Miss
Total Revenue $115.9 million $107.5 million +7.7% $116.48 million Miss (-0.5%)
EPS (GAAP) -$0.14 -$0.11 N/A $0.17 Miss
EPS (Non-GAAP) $0.21 $0.22 -4.5% N/A N/A
Non-GAAP Operating Income $20.1 million $18.6 million +8.1% N/A N/A

PagerDuty reported an 8% year-over-year increase in revenue to $115.9 million. However, this fell slightly short of consensus estimates of $116.48 million. The non-GAAP earnings per share (EPS) of $0.21 eclipsed the GAAP net loss per share of -$0.14, indicating substantial non-GAAP profitability.

Segment Revenue Performance

Segment Metric Q2 FY2025 Q2 FY2024 YoY Change Previous Guidance Beat/Miss
Ending Annual Recurring Revenue (ARR) ($K) $474,000 $431,000 +10% Not Provided N/A
ARR Customers >$100K 820 773 +6% Not Provided N/A
Dollar-Based Net Retention Rate 106% 114% -8% Not Provided N/A

Key segments showed varied growth; the Ending ARR grew by 10% to $474 million, and customers contributing more than $100K in ARR rose by 6% to 820 from 773 in the previous year. Notably, the dollar-based net retention rate decreased to 106% from 114%.

Operational Highlights - Customers with annual recurring revenue over $500 thousand grew over 20%. - Integration with Snowflake Trail to improve observability workflows. - Expanded generative AI solutions with PagerDuty Advance. - Recognized in nine Gartner Hype Cycle Reports and Forrester's Infrastructure Automation Platforms Landscape report.

Executive Commentary Jennifer Tejada, Chairperson and CEO, highlighted the company's robust performance: "PagerDuty delivered a solid second quarter with revenue growth within our guidance range, a non-GAAP operating margin four points above the range, and our eighth consecutive quarter of non-GAAP profitability. We remain confident in ARR growth acceleration as global outages reinforce that incident management has become a CEO priority."

Dividends or Share Repurchase Program No information was provided on any announced dividends or share repurchase program.

Forward Guidance - Q3 FY2025: - Total revenue is expected to be between $115.5 million and $117.5 million, representing 6%-8% year-over-year growth. - Non-GAAP net income per diluted share of $0.16 - $0.17.

  • Full Year FY2025:
  • Total revenue guidance was revised to $463.0 million - $467.0 million from the previous range of $471.0 million - $477.0 million.
  • Non-GAAP net income per diluted share guidance was updated slightly upward to $0.67 - $0.72 from $0.66 - $0.71.

Stock Price Movement Following the earnings release, PagerDuty's stock price fell by 22.7%.

In summary, while PagerDuty posted strong revenue growth and maintained its streak of non-GAAP profitability, the shortfall against consensus estimates and revised revenue guidance led to a significant decline in its stock price.

For more detailed financial data and other information, please visit PagerDuty's investor relations website.