PagerDuty Reports Second Quarter Fiscal 2025 Financial Results
Intellectia.AI Updated: 2024-09-03
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.
