A brief update from my last coverage on PagerDuty (NYSE: PD ). I rated a buy rating in July this year, and my key thesis was that PD offers a strong value proposition to businesses, and it should see I'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount to ...

The price trend for PagerDuty (PD) has been bearish lately and the stock has lost 10.7% over the past two weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support. While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analys ...

PagerDuty (PD) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. The power o ...

Two cloud-related stocks are putting pressure on the sector today. Zscaler Inc (NASDAQ:ZS) and PagerDuty Inc (NYSE:PD) are down 16% and 1.5%, respectively, after each company's rather lackluster turn in the earnings confessional. ZS was last seen trading at $161.78, on track for its worst single-session percentage decline since September 2019. Even though the cloud security company reported a top-line beat for the fiscal fourth quarter, its full-year and first-quarter guidance fell short of analyst estimate ...

Michael Vi Investment Thesis IT Operations cloud software company PagerDuty (NYSE:PD) reported its Q2 earnings report for the FY25 fiscal year, which showed some encouraging signs of troubles in its IT Operations software business bottoming. The San Francisco, CA-based cloud software company has endured a difficult transitory period as has the larger cloud software environment as CIOs and CSOs have allocated a higher share of their IT budgets towards GenAI while sidelining software-focused projects in the p ...

Revenue and Customer Metrics - PagerDuty's revenue for the three months ended July 31, 2024, was $115,935 thousand, representing a 7.7% increase from $107,616 thousand in the same period of 2023[142]. - The number of customers as of July 31, 2024, was 15,044, with 820 customers having greater than $100.0 thousand in annual recurring revenue (ARR), compared to 15,146 customers and 773 customers with greater than $100.0 thousand in ARR as of July 31, 2023[135]. - Revenue for the six months ended July 31, 2024, increased by $16.245 million, or 7.7%, to $227.107 million compared to $210.862 million for the same period in 2023[163]. Profitability and Loss - Gross profit for the three months ended July 31, 2024, was $95,855 thousand, resulting in a gross margin of 82.7%, compared to a gross profit of $87,783 thousand and a gross margin of 81.6% in 2023[139]. - The net loss attributable to PagerDuty, Inc. for the three months ended July 31, 2024, was $10,912 thousand, compared to a net loss of $22,053 thousand in the same period of 2023[139]. - Net loss attributable to PagerDuty, Inc. for the six months ended July 31, 2024, was $28.051 million, compared to a net loss of $34.271 million for the same period in 2023[161]. Operating Expenses - Total operating expenses for the three months ended July 31, 2024, were $111,882 thousand, a decrease from $113,956 thousand in the same period of 2023[139]. - Operating expenses for the six months ended July 31, 2024, totaled $225.444 million, an increase of $10.378 million, or 4.8%, compared to $215.066 million for the same period in 2023[161]. - Research and development expenses for the three months ended July 31, 2024, were $35,088 thousand, down from $36,441 thousand in 2023, representing a decrease in percentage of revenue from 33.9% to 30.3%[139]. Research and Development - Research and development expenses for the six months ended July 31, 2024, increased to $72.611 million, representing 32.0% of revenue, compared to $69.949 million, or 33.2% of revenue, for the same period in 2023[161]. - The company expects research and development expenses to generally increase in dollar value as the business grows[147]. Sales and Marketing - Sales and marketing expenses increased to $50,966 thousand for the three months ended July 31, 2024, compared to $49,724 thousand in 2023, representing 44.0% of revenue[139]. - Sales and marketing expenses for the six months ended July 31, 2024, increased to $99.465 million, representing 43.8% of revenue, compared to $93.525 million, or 44.4% of revenue, for the same period in 2023[161]. Interest Income and Expense - Interest income for the three months ended July 31, 2024, was $7,516 thousand, an increase from $5,011 thousand in the same period of 2023[139]. - Interest expense for the three months ended July 31, 2024, increased by $967 thousand, or 69.3%, to $2.363 million compared to $1.396 million for the same period in 2023[153]. - Interest income increased by $5,282,000 or 57.3%, totaling $14,496,000 for the six months ended July 31, 2024, compared to $9,214,000 in the same period of 2023[170]. Cash Flow and Financial Position - The company achieved a net cash provided by operating activities of $64.4 million for the six months ended July 31, 2024, up from $32.9 million in the same period of 2023, representing a 96.5% increase[198]. - Free cash flow for the three months ended July 31, 2024, was $33.3 million, significantly higher than $8.7 million for the same period in 2023, marking an increase of 282.5%[190]. - As of July 31, 2024, PagerDuty had cash and cash equivalents totaling $599.3 million, which is expected to support working capital and capital expenditure requirements for at least the next 12 months[192]. Share Repurchase and Debt - The company repurchased a total of 1,313,248 shares under its 2024 Share Repurchase Program, with $72.0 million remaining available for future repurchases as of July 31, 2024[195]. - Total debt obligations as of July 31, 2024, amounted to $449.3 million, with $57.2 million classified as short-term[196]. Deferred Revenue - Deferred revenue as of July 31, 2024, stood at $217.9 million, with $214.5 million expected to be recognized as revenue in the next 12 months[194].

PagerDuty (PD) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 31.25%. A quarter ago, it was expected that this software developer would post earnings of $0.13 per share when it actually produced earnings of $0.17, delivering a surprise of 30.77%. Over the last four quarters, the comp ...

Financial Performance - Second quarter revenue increased 8% year over year to $116 million, with a non-GAAP operating income of $20 million and a non-GAAP operating margin of 17.3%[1] - Ending annual recurring revenue (ARR) grew 10% year over year to $474 million, with customers generating over $100 thousand in ARR increasing by 6% to 820[3] - Revenue for Q2 2024 reached $115.935 million, a 7.3% increase from $107.616 million in Q2 2023[11] - For Q3 fiscal 2025, total revenue is expected to be between $115.5 million and $117.5 million, representing a growth rate of 6% to 8% year over year[4] - For the full fiscal year 2025, total revenue is projected to be between $463.0 million and $467.0 million, reflecting a growth rate of 7% to 8% year over year[4] - Revenue for the three months ended July 31, 2024, was $115,935,000, representing a 7.3% increase from $107,616,000 for the same period in 2023[28] Customer Metrics - The dollar-based net retention rate was 106% as of July 31, 2024, down from 114% a year ago[3] - Total paid customers were 15,044, a slight decrease from 15,146 a year ago, while free and paid customers totaled over 29,000, representing approximately 12% growth year over year[3] Profitability and Income - Non-GAAP net income per diluted share for the full fiscal year 2025 is expected to be between $0.67 and $0.72, an increase from previous guidance[4] - Net loss attributable to PagerDuty, Inc. common stockholders for Q2 2024 was $13.242 million, a decrease from $23.782 million in Q2 2023, representing a 44% improvement[11] - PagerDuty reported a net loss of $11,184,000 for the three months ended July 31, 2024, compared to a net loss of $22,622,000 for the same period in 2023, representing a 50.7% improvement[13] - Non-GAAP net income attributable to common stockholders for the three months ended July 31, 2024, was $20,331,000, compared to $18,228,000 for the same period in 2023[28] Cash Flow and Assets - The company generated $35,769,000 in net cash provided by operating activities for the three months ended July 31, 2024, significantly up from $10,750,000 in the same period last year[13] - Cash and cash equivalents increased to $385.673 million from $363.011 million as of January 31, 2024, indicating a positive cash flow trend[12] - Cash, cash equivalents, and restricted cash at the end of the period totaled $389,234,000, up from $302,139,000 at the end of the same period last year, reflecting a 28.8% increase[13] - Free cash flow for the three months ended July 31, 2024, was $33,283,000, up from $8,738,000 in the same period of 2023, indicating a strong increase in cash generation[30] Expenses - Research and development expenses for Q2 2024 were $35.088 million, a slight decrease from $36.441 million in Q2 2023[11] - Sales and marketing expenses increased to $50.966 million in Q2 2024 from $49.724 million in Q2 2023, reflecting ongoing investment in growth[11] - Stock-based compensation expenses amounted to $32,366,000 for the three months ended July 31, 2024, compared to $35,537,000 for the same period in 2023, indicating a decrease of 6.1%[13] Balance Sheet - Total current assets as of July 31, 2024, were $700.476 million, slightly down from $703.198 million as of January 31, 2024[12] - Total liabilities decreased to $735.260 million from $746.413 million, showing a reduction in overall debt[12] - Total stockholders' equity decreased to $164.684 million from $171.600 million, primarily due to accumulated deficit adjustments[12] Strategic Initiatives - Expanded generative AI solutions with PagerDuty Advance to enhance operational resilience and mitigate risks of outages[3] - Engaged with hundreds of customers during PagerDuty on Tour in major cities to promote the PagerDuty Operations Cloud[3] - The company plans to continue investing in strategic initiatives to enhance its balance sheet and support future growth[25] Non-GAAP Measures - The company reported a non-GAAP net income attributable to common stockholders, which excludes stock-based compensation and other adjustments, to provide a clearer view of operational performance[24] - The company emphasizes the importance of non-GAAP financial measures for investors to assess operational performance and comparability with past results[15] - The company emphasizes the importance of reviewing GAAP financial measures alongside non-GAAP measures for a comprehensive evaluation of its business performance[26]

We Are While US markets have rallied to new high after new high in recent years, obviously not every stock has participated. One name that's significantly underperformed is digital operations management company PagerDuty (NYSE:PD). Shares have lost more than 42% over the past five years, and even more from their 2021 peak, as revenue growth rates have dropped and revenue estimates have come down meaningfully. In a little more than a week, the company will report quarterly results, with a bit of pressure on ...

One thing you can say about Cathie Wood is that she's persistent. The aggressive growth investor who's also the co-founder, CEO, and ace stock picker at Ark Invest enjoys swinging the fences. She's also not afraid to go for the safe single, binge-buying some of her favorite holdings over and over again. She publishes Ark Invest's transactions at the end of every market day. Something out of the ordinary happened on Friday night, as she announced her purchases from earlier in the day. PagerDuty (PD 0.75%) wa ...