Core Viewpoint - Precision Drilling Corporation has appointed Mr. Carey Ford as the new President and Chief Executive Officer, succeeding Kevin Neveu, who has retired after 18 years in the role [1][6]. Leadership Changes - Mr. Ford has been with Precision since 2011 and served as Chief Financial Officer since 2016, where he has strengthened investor confidence and guided the company's financial strategy [2]. - The Board has also appointed Gene Stahl as Chief Operating Officer, who has over 28 years of experience with the company, and Dustin Honing as Chief Financial Officer, who has nearly 15 years of experience at Precision [4]. Strategic Direction - Mr. Ford expressed enthusiasm for his new role and emphasized the company's commitment to serving customers and operating safely, while also looking forward to guiding Precision into its next growth phase [3]. - The Board expressed full confidence in Mr. Ford's leadership and highlighted the company's focus on advancing its technology-driven strategy and delivering sustainable long-term value for stakeholders [5]. Company Overview - Precision is a leading provider of safe and environmentally responsible services to the energy industry, with a focus on High Performance and High Value services [7]. - The company offers an extensive fleet of Super Series drilling rigs and has developed a digital technology portfolio known as Alpha, which utilizes advanced automation software and analytics [7]. - Precision is headquartered in Calgary, Alberta, Canada, and is publicly traded on the Toronto Stock Exchange and the New York Stock Exchange [8].

Company Overview - Precision Drilling Corporation is a leading provider of safe and environmentally responsible services to the energy industry, offering access to an extensive fleet of Super Series drilling rigs [4] - The company has commercialized an industry-leading digital technology portfolio known as Alpha™, which utilizes advanced automation software and analytics to deliver efficient, predictable, and repeatable results for energy customers [4] - Precision also provides well service rigs, camps, and rental equipment, supported by a comprehensive mix of technical support services and skilled personnel [4] Upcoming Financial Results - Precision intends to release its 2025 third quarter results after the market closes on October 22, 2025 [1] - A conference call is scheduled for October 23, 2025, at 11:00 a.m. MT (1:00 p.m. ET) to discuss the results [1] - Participants can register for the conference call to receive a dial-in number and unique PIN for questions [1][2] Webcast and Replay - The conference call will also be webcast, and a replay will be available on Precision's website for 12 months [2]

Company Overview - Renaissance Investment Management released its Q2 2025 "Small Cap Growth Strategy" investor letter, highlighting the volatility in the stock market during the second quarter due to unexpected tariff announcements, which caused a 7% drop in stock prices from April 2 to April 7 [1] - The Russell 2000 Growth Index rallied in the second quarter, and the strategy outperformed the index, indicating positive economic growth ahead supported by sound corporate earnings and solid economic data [1] PagerDuty, Inc. (NYSE:PD) Performance - PagerDuty, Inc. is a digital operations management platform, with a one-month return of -0.06% and a 52-week loss of 10.33%, closing at $16.32 per share on September 19, 2025, with a market capitalization of $1.522 billion [2] - The company reported revenue of $123 million in the fiscal second quarter of 2026, representing a 6% year-over-year growth [4] Investment Strategy and Changes - Renaissance Investment Management exited its position in PagerDuty, Inc. due to struggles in reaccelerating revenue growth to double-digit levels, ongoing execution challenges, and increased competition from larger players [3] - Despite acknowledging PagerDuty's potential, the company believes that certain AI stocks offer greater upside potential and less downside risk, suggesting a shift in investment focus [4]

Core Insights - PagerDuty Inc. is recognized as a strong tech stock by Cathie Wood, despite Goldman Sachs maintaining a Neutral rating with a $16 price target following the company's Q2 results [1][2] Financial Performance - In Q2, PagerDuty's revenue increased by 6% year-over-year to $123 million, surpassing expectations, with earnings per share at $0.30 compared to the forecast of $0.20 [2] - Annual recurring revenue rose by 5% year-over-year to $499 million, with the number of customers generating over $100,000 in revenue increasing by 6% to 868 [4] Market Position and Strategy - PagerDuty is positioned as a key player in the AI ecosystem, serving as a preferred real-time operations platform for enterprises and AI-native companies [3] - The company anticipates Q3 revenue to be between $124 million and $126 million, indicating a year-over-year growth of 4% to 6% [4] Product Offering - PagerDuty provides a digital operations management platform that assists IT and DevOps teams in real-time incident detection, response, and resolution, integrating with various monitoring tools and utilizing AI for automation [5]

Product & Solution - Pedi offers an enterprise-grade AI-powered incident management solution to help organizations transform critical operations [1] - The AI agent assists teams in understanding incidents through chat platforms like Slack or MS Teams, eliminating the need to navigate dashboards [2] - Langraph structures the AI agent with memory, decision-making, and fallbacks, parsing questions and devising plans to find answers [3] - Langraph provides full control over the agent's behavior, enabling debugging, error handling, and output analysis [4] Benefits & Impact - The AI agent saves engineers hours per week and reduces context switching [6] - Internal use of the AI agent provides learnings and a framework for developing more AI agents for customers [6] - Engineers use it for retrospectives, product managers use it to understand service stability, and executives use it to ask about incident and service health metrics [5] Technology & Architecture - Langraph helps maintain context throughout conversations, facilitating faster insights from incidents [3] - Langraph is flexible, open, well-documented, and integrates with Langchain and other observability tools [7] - Langraph enables the building of reliable and thoughtful AI agents that involve reasoning, data access, or coordination between steps [6][7]

Core Insights - PagerDuty reported mixed second-quarter results, with adjusted earnings of 30 cents per share, surpassing market estimates of 21 cents, while sales of $123.411 million fell short of expectations of $123.639 million [1] - The company provided third-quarter guidance for adjusted EPS between 24 cents and 25 cents, with expected sales ranging from $124 million to $126 million [1] Group 1 - PagerDuty achieved GAAP profitability in Q2 and experienced solid growth in international markets, along with customer additions exceeding last year's total [2] - The company is positioned as a key player in the emerging AI ecosystem, serving as a preferred real-time operations platform for enterprises and AI-native companies [2] - Following the earnings announcement, PagerDuty shares increased by 5.5%, reaching a trading price of $16.44 [2] Group 2 - Analysts adjusted their price targets for PagerDuty post-earnings, with Canaccord Genuity lowering its target from $21 to $19 while maintaining a Buy rating [8] - RBC Capital maintained an Outperform rating but reduced its price target from $20 to $18 [8] - Baird maintained a Neutral rating and cut its price target from $18 to $16 [8]

Core Viewpoint - PagerDuty reported quarterly earnings of $0.3 per share, exceeding the Zacks Consensus Estimate of $0.2 per share, and showing an increase from $0.21 per share a year ago, representing an earnings surprise of +50.00% [1][2] Financial Performance - The company posted revenues of $123.41 million for the quarter ended July 2025, slightly missing the Zacks Consensus Estimate by 0.15%, but up from $115.93 million year-over-year [2] - Over the last four quarters, PagerDuty has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - PagerDuty shares have declined approximately 11.7% since the beginning of the year, contrasting with the S&P 500's gain of 9.1% [3] - The current Zacks Rank for PagerDuty is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $125.7 million, and for the current fiscal year, it is $0.97 on revenues of $496.92 million [7] - The trend of earnings estimate revisions for PagerDuty was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Internet - Software industry, to which PagerDuty belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents PagerDuty's unaudited condensed consolidated financial statements for the period ended July 31, 2025, covering balance sheets, operations, comprehensive loss, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets (unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) Condensed Consolidated Balance Sheets (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :----------------------------------- | :------------ | :--------------- | | **Assets** | | | | Total current assets | $671,748 | $711,720 | | Total assets | $891,531 | $927,266 | | **Liabilities & Equity** | | | | Total current liabilities | $281,141 | $369,158 | | Total liabilities | $693,850 | $779,221 | | Total stockholders' equity | $180,709 | $129,828 | - Total assets decreased from **$927.3 million** as of January 31, 2025, to **$891.5 million** as of July 31, 2025[15](index=15&type=chunk) - Total liabilities decreased from **$779.2 million** to **$693.9 million**, primarily due to the repayment of current convertible senior notes[15](index=15&type=chunk) - Total stockholders' equity increased from **$129.8 million** to **$180.7 million**[15](index=15&type=chunk) [Condensed Consolidated Statements of Operations (unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(unaudited)) Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $123,411 | $115,935 | $243,216 | $227,107 | | Gross profit | $104,410 | $95,855 | $205,031 | $187,684 | | Income (loss) from operations | $3,566 | $(16,027) | $(6,761) | $(37,760) | | Net income (loss) attributable to PagerDuty, Inc. | $9,575 | $(10,912) | $2,413 | $(28,051) | | Basic EPS | $0.11 | $(0.14) | $0.04 | $(0.40) | | Diluted EPS | $0.10 | $(0.14) | $0.03 | $(0.40) | - Revenue increased by **6.4%** for the three months ended July 31, 2025, and by **7.1%** for the six months ended July 31, 2025, compared to the prior year periods[17](index=17&type=chunk) - The company reported net income attributable to PagerDuty, Inc. of **$9.575 million** for the three months ended July 31, 2025, a significant improvement from a net loss of **$10.912 million** in the prior year period[17](index=17&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss (unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss%20(unaudited)) Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $9,414 | $(11,184) | $2,035 | $(28,529) | | Total comprehensive income (loss) | $9,083 | $(10,679) | $1,847 | $(28,526) | | Comprehensive income (loss) attributable to PagerDuty, Inc. | $9,244 | $(10,407) | $2,225 | $(28,048) | - Total comprehensive income attributable to PagerDuty, Inc. improved significantly to **$9.244 million** for the three months ended July 31, 2025, from a loss of **$10.407 million** in the same period last year[19](index=19&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(unaudited)) Condensed Consolidated Statements of Stockholders' Equity (in thousands, except share data) | Metric | Balance as of January 31, 2025 | Balance as of July 31, 2025 | | :----------------------------------- | :--------------------------- | :-------------------------- | | Total Stockholders' Equity | $129,828 | $180,709 | | Additional Paid-in Capital | $725,483 | $774,139 | | Accumulated Deficit | $(595,170) | $(592,757) | | Shares Outstanding | 91,082,604 | 93,238,538 | - Stockholders' equity increased by **$50.881 million** from January 31, 2025, to July 31, 2025, primarily driven by net income and stock-based compensation[22](index=22&type=chunk) - Additional paid-in capital increased by **$48.656 million**, reflecting stock option exercises, ESPP issuances, and stock-based compensation[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows (unaudited)](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $64,644 | $64,416 | | Net cash used in investing activities | $(8,860) | $(6,621) | | Net cash used in financing activities | $(63,040) | $(35,205) | | Net change in cash, cash equivalents, and restricted cash | $(7,143) | $22,567 | | Cash, cash equivalents, and restricted cash at end of period | $341,185 | $389,234 | - Net cash provided by operating activities remained stable at **$64.644 million** for the six months ended July 31, 2025, compared to **$64.416 million** in the prior year[27](index=27&type=chunk) - Net cash used in financing activities significantly increased to **$63.040 million**, primarily due to the repayment of **$57.5 million** in 2025 Convertible Senior Notes[27](index=27&type=chunk)[71](index=71&type=chunk) [Notes to Condensed Consolidated Financial Statements (unaudited)](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) [Note 1. Description of Business and Basis of Presentation](index=14&type=section&id=Note%201.%20Description%20of%20Business%20and%20Basis%20of%20Presentation) - PagerDuty, Inc. provides a digital operations management platform that leverages machine learning for incident response, event management, and automation[32](index=32&type=chunk) - The financial statements are prepared in accordance with U.S. GAAP and SEC interim reporting rules, and should be read with the Annual Report on Form 10-K for the year ended January 31, 2025[33](index=33&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=15&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) - The Company manages its operations as one operating segment, with the CEO as the chief operating decision maker[40](index=40&type=chunk) - No single customer accounted for **10%** or more of total accounts receivable or revenue for the periods presented[39](index=39&type=chunk) - Restricted cash, primarily collateral for office facility leases, was **$1.5 million** as of July 31, 2025, and **$1.9 million** as of January 31, 2025[43](index=43&type=chunk) [Note 3. Redeemable Non-Controlling Interest](index=16&type=section&id=Note%203.%20Redeemable%20Non-Controlling%20Interest) - PagerDuty established a joint venture, PagerDuty K.K., in May 2022, holding a **51%** controlling interest[47](index=47&type=chunk) Redeemable Non-Controlling Interest Activity (in thousands) | Metric | Three months ended July 31, 2025 | Six months ended July 31, 2025 | | :------------------------------------------ | :------------------------------- | :----------------------------- | | Balance at beginning of period | $17,335 | $18,217 | | Net loss attributable to redeemable non-controlling interest | $(161) | $(378) | | Adjustments to redeemable non-controlling interest | $(202) | $(867) | | Balance at end of period | $16,972 | $16,972 | [Note 4. Cash, Cash Equivalents, and Investments](index=17&type=section&id=Note%204.%20Cash,%20Cash%20Equivalents,%20and%20Investments) Cash, Cash Equivalents, and Investments (in thousands) | Category | July 31, 2025 | January 31, 2025 | | :----------------------------- | :------------ | :--------------- | | Cash and cash equivalents | $339,712 | $346,460 | | Available-for-sale investments | $228,142 | $224,366 | | Total | $567,854 | $570,826 | - Total cash, cash equivalents, and investments decreased slightly from **$570.8 million** to **$567.9 million**[50](index=50&type=chunk) - As of July 31, 2025, **95 securities** were in an unrealized loss position with an aggregate fair value of **$166.8 million**, none continuously for more than **12 months**[52](index=52&type=chunk) [Note 5. Fair Value Measurements](index=18&type=section&id=Note%205.%20Fair%20Value%20Measurements) Fair Value Measurements (in thousands) as of July 31, 2025 | Category | Level 1 | Level 2 | Level 3 | Total | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | | Money market funds | $290,107 | $— | $— | $290,107 | | U.S. Treasury securities | $— | $58,919 | $— | $58,919 | | Commercial paper | $— | $6,011 | $— | $6,011 | | Corporate debt securities | $— | $132,511 | $— | $132,511 | | U.S. Government agency securities | $— | $30,701 | $— | $30,701 | | Total | $290,107 | $228,142 | $— | $518,249 | - The estimated fair value of the 2028 Convertible Senior Notes was approximately **$386.9 million** as of July 31, 2025, classified as Level 2[60](index=60&type=chunk) [Note 6. Property and Equipment, Net](index=20&type=section&id=Note%206.%20Property%20and%20Equipment,%20Net) Property and Equipment, Net (in thousands) | Category | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :------------ | :--------------- | | Gross property and equipment | $54,473 | $47,010 | | Accumulated depreciation and amortization | $(29,262) | $(25,675) | | Property and equipment, net | $25,211 | $21,335 | - Net property and equipment increased by **$3.876 million** from January 31, 2025, to July 31, 2025[61](index=61&type=chunk) - Depreciation and amortization expense was **$1.8 million** for the three months ended July 31, 2025, and **$3.9 million** for the six months ended July 31, 2025[62](index=62&type=chunk) [Note 7. Deferred Contract Costs](index=20&type=section&id=Note%207.%20Deferred%20Contract%20Costs) - Deferred contract costs, primarily sales commissions, were **$44.1 million** as of July 31, 2025, down from **$45.1 million** as of January 31, 2025[63](index=63&type=chunk) - Amortization expense for deferred contract costs was **$5.7 million** for the three months ended July 31, 2025, and **$11.2 million** for the six months ended July 31, 2025[63](index=63&type=chunk) [Note 8. Leases](index=20&type=section&id=Note%208.%20Leases) Lease Information (in thousands) | Category | July 31, 2025 | January 31, 2025 | | :------------------------ | :------------ | :--------------- | | Lease right-of-use assets | $8,266 | $6,806 | | Lease liabilities, current | $3,646 | $3,307 | | Lease liabilities, non-current | $10,186 | $9,637 | - As of July 31, 2025, the weighted average remaining lease term was **3.7 years**, and the weighted average discount rate was **5.6%**[69](index=69&type=chunk) - Operating lease expense for the six months ended July 31, 2025, was **$1.4 million**, down from **$1.7 million** in the prior year[70](index=70&type=chunk) [Note 9. Debt and Financing Arrangements](index=21&type=section&id=Note%209.%20Debt%20and%20Financing%20Arrangements) - The Company repaid **$57.5 million** of its 2025 Convertible Senior Notes in cash during the three months ended July 31, 2025[71](index=71&type=chunk) Net Carrying Amount of Convertible Notes (in thousands) | Note Type | July 31, 2025 | January 31, 2025 | | :---------- | :------------ | :--------------- | | 2025 Notes | $— | $57,426 | | 2028 Notes | $394,541 | $393,282 | | Total | $394,541 | $450,708 | - Interest expense related to the Notes was **$2.286 million** for the three months ended July 31, 2025, and **$4.650 million** for the six months ended July 31, 2025[75](index=75&type=chunk) - The 2025 Capped Calls expired in connection with the repayment of the 2025 Notes, while the 2028 Capped Calls remain outstanding[77](index=77&type=chunk)[78](index=78&type=chunk) [Note 10. Commitments and Contingencies](index=23&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) - The Company is not currently a party to any material legal proceedings and has not incurred significant liabilities related to service-level agreements[79](index=79&type=chunk)[80](index=80&type=chunk) [Note 11. Deferred Revenue and Performance Obligations](index=23&type=section&id=Note%2011.%20Deferred%20Revenue%20and%20Performance%20Obligations) Deferred Revenue (in thousands) | Metric | Three months ended July 31, 2025 | Six months ended July 31, 2025 | | :-------------------------- | :------------------------------- | :----------------------------- | | Deferred revenue, beginning of period | $239,712 | $245,752 | | Billings | $113,613 | $227,378 | | Revenue recognized | $(123,411) | $(243,216) | | Deferred revenue, end of period | $229,914 | $229,914 | - As of July 31, 2025, total transaction price allocated to remaining non-cancelable performance obligations was approximately **$425 million**[85](index=85&type=chunk) - The Company expects to recognize approximately **$295 million (69%)** of remaining performance obligations over the next **12 months**[85](index=85&type=chunk) [Note 12. Common Stock and Stockholders' Equity](index=24&type=section&id=Note%2012.%20Common%20Stock%20and%20Stockholders'%20Equity) - The Board authorized a new **$150.0 million** share repurchase program in March 2025, with no shares repurchased as of July 31, 2025[87](index=87&type=chunk) - As of July 31, 2025, **$161.2 million** of unrecognized stock-based compensation expense related to unvested RSUs is expected to be recognized over a weighted average period of **2.2 years**[93](index=93&type=chunk) Total Stock-Based Compensation Expense (in thousands) | Period | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total stock-based compensation expense | $25,960 | $32,366 | $51,713 | $65,306 | [Note 13. Net Income (Loss) per Share](index=26&type=section&id=Note%2013.%20Net%20Income%20(Loss)%20per%20Share) Net Income (Loss) per Share Attributable to PagerDuty, Inc. Common Stockholders | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to PagerDuty, Inc. common stockholders | $9,777 | $(13,242) | $3,280 | $(37,298) | | Basic EPS | $0.11 | $(0.14) | $0.04 | $(0.40) | | Diluted EPS | $0.10 | $(0.14) | $0.03 | $(0.40) | - Diluted EPS improved to **$0.10** for the three months ended July 31, 2025, from a loss of **$0.14** in the prior year period[104](index=104&type=chunk) [Note 14. Income Taxes](index=27&type=section&id=Note%2014.%20Income%20Taxes) - The Company recorded an income tax benefit of **$1.9 million** for the three months ended July 31, 2025, compared to a provision of **$0.4 million** in the prior year[108](index=108&type=chunk) - The U.S. enacted tax reform legislation (OBBBA) on July 4, 2025, effective fiscal 2026, which management does not expect to have a material impact[109](index=109&type=chunk) - The Company maintains a valuation allowance for its net U.S. deferred tax assets but believes there is a reasonable possibility that it may no longer be needed within the next **12 months**[110](index=110&type=chunk) [Note 15. Geographic Information](index=28&type=section&id=Note%2015.%20Geographic%20Information) Revenue by Geographic Area (in thousands) | Region | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $88,081 | $84,315 | $174,112 | $165,107 | | International | $35,330 | $31,620 | $69,104 | $62,000 | | Total | $123,411 | $115,935 | $243,216 | $227,107 | - International revenue grew by **11.7%** for the three months ended July 31, 2025, and by **11.5%** for the six months ended July 31, 2025[111](index=111&type=chunk) - As of July 31, 2025, **72%** of long-lived assets were in the United States, **15%** in Canada, and **11%** in Portugal[112](index=112&type=chunk) [Note 16. Subsequent Events](index=29&type=section&id=Note%2016.%20Subsequent%20Events) - In August 2025, the Board of Directors authorized an additional **$50.0 million** for the 2025 Share Repurchase Program, increasing the total to **$200.0 million**[114](index=114&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses PagerDuty's financial condition and operational results, covering business model, key metrics, financial performance for Q2 and H1 2025 vs 2024, non-GAAP measures, and liquidity [Overview and Business Model](index=30&type=section&id=Overview%20and%20Business%20Model) - PagerDuty is a global leader in digital operations management, offering the PagerDuty Operations Cloud which combines AIOps, automation, customer service operations, and incident management with a generative AI assistant[117](index=117&type=chunk) - The platform collects data from over **700 direct integrations**, leveraging AI and machine learning to predict and resolve incidents[119](index=119&type=chunk)[120](index=120&type=chunk) - Revenue is primarily generated from cloud-hosted software subscription fees, with a 'land-and-expand' business model focused on enterprise customers[121](index=121&type=chunk)[122](index=122&type=chunk) [Macroeconomic Environment](index=31&type=section&id=Macroeconomic%20Environment) - The company's business and financial performance are subject to global macroeconomic conditions, including inflation, interest rates, and economic uncertainty[123](index=123&type=chunk) [Key Business Metrics](index=31&type=section&id=Key%20Business%20Metrics) Key Business Metrics | Metric | As of July 31, 2025 | As of July 31, 2024 | | :----------------------------------- | :------------------ | :------------------ | | Annual Recurring Revenue (ARR) | $498.9 million | $474.0 million | | Number of Customers | 15,322 | 15,044 | | Customers with >$100.0k ARR | 868 | 820 | | Dollar-based Net Retention Rate (LTM) | 102 % | 106 % | - ARR increased by **5.25%** year-over-year to **$498.9 million** as of July 31, 2025[128](index=128&type=chunk) - The number of customers with greater than **$100.0 thousand** in ARR increased by **5.85%** to **868**[129](index=129&type=chunk) - Dollar-based net retention rate decreased to **102%** for the last **12 months** ended July 31, 2025, from **106%** in the prior year[131](index=131&type=chunk) [Results of Operations (Three months ended July 31, 2025 compared to three months ended July 31, 2024)](index=33&type=section&id=Results%20of%20Operations) Key Financial Highlights (Three months ended July 31, in thousands, except percentages) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :------- | :------- | :--------- | :--------- | | Revenue | $123,411 | $115,935 | $7,476 | 6.4 % | | Gross profit | $104,410 | $95,855 | $8,555 | 8.9 % | | Income (loss) from operations | $3,566 | $(16,027) | $19,593 | 122.2 % | | Net income (loss) | $9,414 | $(11,184) | $20,598 | 184.2 % | - Revenue growth was primarily driven by existing customers, increasing users, and upsell of additional products[136](index=136&type=chunk) - Gross margin improved to **84.6%** in Q2 2025 from **82.7%** in Q2 2024, due to decreased amortization of acquired intangible assets and lower outside services spend[139](index=139&type=chunk) - Total operating expenses decreased by **9.9%** to **$100.844 million**, primarily due to lower personnel costs and stock-based compensation in R&D and S&M[141](index=141&type=chunk)[142](index=142&type=chunk)[144](index=144&type=chunk) [Revenue](index=34&type=section&id=Revenue) - Revenue increased by **$7.476 million**, or **6.4%**, to **$123.411 million** for the three months ended July 31, 2025, compared to **$115.935 million** for the three months ended July 31, 2024[136](index=136&type=chunk) [Cost of Revenue and Gross Margin](index=34&type=section&id=Cost%20of%20Revenue%20and%20Gross%20Margin) - Cost of revenue decreased by **$1.079 million**, or **5.4%**, to **$19.001 million** for the three months ended July 31, 2025[139](index=139&type=chunk) - Gross margin increased to **84.6%** for the three months ended July 31, 2025, from **82.7%** in the prior year[139](index=139&type=chunk) [Operating Expenses](index=35&type=section&id=Operating%20Expenses) Operating Expenses (Three months ended July 31, in thousands) | Expense Category | 2025 | 2024 | Change ($) | Change (%) | | :------------------------ | :------- | :------- | :--------- | :--------- | | Research and development | $30,897 | $35,088 | $(4,191) | (11.9)% | | Sales and marketing | $44,456 | $50,966 | $(6,510) | (12.8)% | | General and administrative | $25,491 | $25,828 | $(337) | (1.3)% | | Total operating expenses | $100,844 | $111,882 | $(11,038) | (9.9)% | - Research and development expenses decreased by **$4.1 million** due to lower personnel costs and stock-based compensation[142](index=142&type=chunk) - Sales and marketing expenses decreased by **$6.5 million**, driven by reduced personnel costs, outside services, and training/travel[144](index=144&type=chunk) [Non-Operating Expenses](index=36&type=section&id=Non-Operating%20Expenses) Non-Operating Income (Expenses) (Three months ended July 31, in thousands) | Category | 2025 | 2024 | Change ($) | Change (%) | | :------------------------------------ | :------- | :------- | :--------- | :--------- | | Interest income | $6,149 | $7,516 | $(1,367) | (18.2)% | | Interest expense | $(2,286) | $(2,363) | $77 | (3.3)% | | Other income, net | $120 | $117 | $3 | 2.6 % | | (Benefit from) provision for income taxes | $(1,865) | $427 | $(2,292) | (536.8)% | - Interest income decreased by **18.2%** due to lower interest-earning cash balances[148](index=148&type=chunk) - The company recorded an income tax benefit of **$1.865 million**, a significant change from a provision of **$0.427 million** in the prior year[153](index=153&type=chunk) [Results of Operations (Six months ended July 31, 2025 compared to six months ended July 31, 2024)](index=37&type=section&id=Results%20of%20Operations%20(Six%20months%20ended%20July%2031,%202025%20compared%20to%20six%20months%20ended%20July%2031,%202024)) Key Financial Highlights (Six months ended July 31, in thousands, except percentages) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :------- | :------- | :--------- | :--------- | | Revenue | $243,216 | $227,107 | $16,109 | 7.1 % | | Gross profit | $205,031 | $187,684 | $17,347 | 9.2 % | | Loss from operations | $(6,761) | $(37,760) | $30,999 | 82.1 % | | Net income (loss) | $2,035 | $(28,529) | $30,564 | 107.1 % | - Revenue increased by **7.1%** to **$243.216 million** for the six months ended July 31, 2025[156](index=156&type=chunk) - Operating loss significantly narrowed by **82.1%** to **$(6.761) million**, reflecting improved operational efficiency[155](index=155&type=chunk) - Net income for the six months ended July 31, 2025, was **$2.035 million**, a substantial improvement from a net loss of **$28.529 million** in the prior year[155](index=155&type=chunk) [Revenue](index=37&type=section&id=Revenue_SixMonths) - Revenue increased by **$16.109 million**, or **7.1%**, to **$243.216 million** for the six months ended July 31, 2025, compared to **$227.107 million** for the six months ended July 31, 2024[156](index=156&type=chunk) [Cost of Revenue and Gross Margin](index=39&type=section&id=Cost%20of%20Revenue%20and%20Gross%20Margin_SixMonths) - Cost of revenue decreased by **$1.238 million**, or **3.1%**, to **$38.185 million** for the six months ended July 31, 2025[160](index=160&type=chunk) - Gross margin increased to **84.3%** for the six months ended July 31, 2025, from **82.6%** in the prior year[160](index=160&type=chunk) [Operating Expenses](index=39&type=section&id=Operating%20Expenses_SixMonths) Operating Expenses (Six months ended July 31, in thousands) | Expense Category | 2025 | 2024 | Change ($) | Change (%) | | :------------------------ | :------- | :------- | :--------- | :--------- | | Research and development | $64,945 | $72,611 | $(7,666) | (10.6)% | | Sales and marketing | $94,501 | $99,465 | $(4,964) | (5.0)% | | General and administrative | $52,346 | $53,368 | $(1,022) | (1.9)% | | Total operating expenses | $211,792 | $225,444 | $(13,652) | (6.1)% | - Research and development expenses decreased by **$7.1 million** due to lower personnel costs and stock-based compensation[161](index=161&type=chunk) - Sales and marketing expenses decreased by **$4.964 million**, primarily from reduced outside services and personnel costs[162](index=162&type=chunk) [Non-Operating Expenses](index=40&type=section&id=Non-Operating%20Expenses_SixMonths) Non-Operating Income (Expenses) (Six months ended July 31, in thousands) | Category | 2025 | 2024 | Change ($) | Change (%) | | :------------------------------------ | :------- | :------- | :--------- | :--------- | | Interest income | $12,160 | $14,496 | $(2,336) | (16.1)% | | Interest expense | $(4,650) | $(4,511) | $(139) | 3.1 % | | Other income (expense), net | $234 | $(134) | $368 | (274.6)% | | (Benefit from) provision for income taxes | $(1,052) | $620 | $(1,672) | (269.7)% | - Interest income decreased by **16.1%** due to lower interest-earning cash balances[164](index=164&type=chunk) - The company reported an income tax benefit of **$1.052 million**, a significant improvement from a provision of **$0.620 million** in the prior year[166](index=166&type=chunk) [Non-GAAP Financial Measures](index=40&type=section&id=Non-GAAP%20Financial%20Measures) - PagerDuty uses non-GAAP financial measures (excluding stock-based compensation, employer taxes, amortization of acquired intangibles, acquisition-related expenses, debt issuance costs, restructuring costs, shareholder matters, and non-controlling interest adjustments) to evaluate operating performance and for internal planning[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) [Non-GAAP gross profit and non-GAAP gross margin](index=41&type=section&id=Non-GAAP%20gross%20profit%20and%20non-GAAP%20gross%20margin) Non-GAAP Gross Profit and Margin (in thousands) | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Non-GAAP gross profit | $106,254 | $99,668 | $209,283 | $195,704 | | Non-GAAP gross margin | 86.1 % | 86.0 % | 86.0 % | 86.2 % | - Non-GAAP gross margin remained stable at approximately **86%** for both the three and six months ended July 31, 2025 and 2024[178](index=178&type=chunk) [Non-GAAP operating income and non-GAAP operating margin](index=42&type=section&id=Non-GAAP%20operating%20income%20and%20non-GAAP%20operating%20margin) Non-GAAP Operating Income and Margin (in thousands) | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Non-GAAP operating income | $31,407 | $20,111 | $55,766 | $35,440 | | Non-GAAP operating margin | 25.4 % | 17.3 % | 22.9 % | 15.6 % | - Non-GAAP operating margin significantly improved to **25.4%** for the three months ended July 31, 2025, from **17.3%** in the prior year[180](index=180&type=chunk) [Non-GAAP net income attributable to PagerDuty, Inc. common stockholders](index=43&type=section&id=Non-GAAP%20net%20income%20attributable%20to%20PagerDuty,%20Inc.%20common%20stockholders) Non-GAAP Net Income Attributable to PagerDuty, Inc. Common Stockholders (in thousands) | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Non-GAAP net income attributable to PagerDuty, Inc. common stockholders | $28,276 | $20,331 | $50,955 | $36,336 | - Non-GAAP net income increased by **39.1%** to **$28.276 million** for the three months ended July 31, 2025[182](index=182&type=chunk) [Free cash flow](index=43&type=section&id=Free%20cash%20flow) Free Cash Flow (in thousands) | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $33,974 | $35,769 | $64,644 | $64,416 | | Free cash flow | $30,207 | $33,283 | $59,193 | $60,381 | - Free cash flow for the six months ended July 31, 2025, was **$59.193 million**, a slight decrease from **$60.381 million** in the prior year[184](index=184&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) - As of July 31, 2025, principal sources of liquidity were cash, cash equivalents, and investments totaling **$567.9 million**[185](index=185&type=chunk) - The company believes existing liquidity and operating cash flows will be sufficient for working capital and capital expenditures for at least the next **12 months**[185](index=185&type=chunk) - Deferred revenue was **$229.9 million** as of July 31, 2025, with **$227.0 million** expected to be recognized as current revenue[187](index=187&type=chunk) - The 2025 Convertible Notes (**$57.5 million** principal) were repaid in cash during the three months ended July 31, 2025[186](index=186&type=chunk) - In August 2025, the Board authorized an additional **$50.0 million** for the 2025 Share Repurchase Program, increasing the total to **$200.0 million**[190](index=190&type=chunk) [Sources and Uses of Liquidity](index=44&type=section&id=Sources%20and%20Uses%20of%20Liquidity) - As of July 31, 2025, the Company's liquidity sources included **$567.9 million** in cash, cash equivalents, and investments[185](index=185&type=chunk) [Debt and Financing Arrangements](index=44&type=section&id=Debt%20and%20Financing%20Arrangements_Liquidity) - The **$57.5 million** principal of the 2025 Notes was repaid in cash at maturity during the three months ended July 31, 2025[186](index=186&type=chunk) [Deferred Revenue](index=44&type=section&id=Deferred%20Revenue_Liquidity) - Deferred revenue totaled **$229.9 million** as of July 31, 2025, with **$227.0 million** classified as current liability[187](index=187&type=chunk) [Share Repurchase Programs](index=45&type=section&id=Share%20Repurchase%20Programs_Liquidity) - The 2025 Share Repurchase Program was increased to **$200.0 million** in August 2025, with no shares repurchased as of July 31, 2025[189](index=189&type=chunk)[190](index=190&type=chunk) [Future Contractual Obligations](index=45&type=section&id=Future%20Contractual%20Obligations) - Total debt obligations are **$394.5 million** (long-term), and operating lease obligations include **$3.6 million** current and **$10.2 million** long-term[192](index=192&type=chunk) [Effect of Exchange Rates](index=45&type=section&id=Effect%20of%20Exchange%20Rates) - Foreign exchange rates had a positive effect of **$0.1 million** on cash in the six months ended July 31, 2025, compared to a negative effect of **$23.0 thousand** in the prior year[193](index=193&type=chunk) [Cash Flow Information](index=45&type=section&id=Cash%20Flow%20Information) Cash Flow Summary (Six months ended July 31, in thousands) | Category | 2025 | 2024 | Change ($) | | :---------------------------------------------------------- | :------- | :------- | :--------- | | Net cash provided by operating activities | $64,644 | $64,416 | $228 | | Net cash used in investing activities | $(8,860) | $(6,621) | $(2,239) | | Net cash used in financing activities | $(63,040) | $(35,205) | $(27,835) | | Net change in cash, cash equivalents, and restricted cash | $(7,143) | $22,567 | $(29,710) | - Net cash used in financing activities increased significantly due to the repayment of the 2025 Convertible Notes[197](index=197&type=chunk) [Off-Balance Sheet Arrangements](index=46&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company had **$1.4 million** of irrevocable standby letters of credit outstanding as of July 31, 2025, fully collateralized by restricted cash[199](index=199&type=chunk) [Critical Accounting Estimates](index=46&type=section&id=Critical%20Accounting%20Estimates) - There have been no material changes to critical accounting policies and estimates since the Annual Report on Form 10-K for the year ended January 31, 2025[200](index=200&type=chunk) [Recent Accounting Pronouncements](index=46&type=section&id=Recent%20Accounting%20Pronouncements) - The Company is evaluating the impact of new FASB ASUs on income tax disclosures (ASU 2023-09), income statement expense disaggregation (ASU 2024-03), and induced conversion of convertible debt (ASU 2024-04)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[201](index=201&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there have been no material changes in the company's market risk since its last Annual Report on Form 10-K - No material changes in market risk have occurred since the Annual Report on Form 10-K for the year ended January 31, 2025[202](index=202&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, with CEO and CFO, concluded disclosure controls and procedures were effective as of July 31, 2025, with no material changes to internal controls over financial reporting - Disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of July 31, 2025[204](index=204&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended July 31, 2025[206](index=206&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=46&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The CEO and CFO concluded that disclosure controls and procedures were effective as of July 31, 2025[204](index=204&type=chunk) [Limitations on the Effectiveness of Controls](index=47&type=section&id=Limitations%20on%20the%20Ef%20ectiveness%20of%20Controls) - The effectiveness of any internal control system is subject to inherent limitations, providing reasonable, not absolute, assurance[205](index=205&type=chunk) [Changes in Internal Controls Over Financial Reporting](index=47&type=section&id=Changes%20in%20Internal%20Controls%20Over%20Financial%20Reporting) - No material changes to internal control over financial reporting were identified during the quarter ended July 31, 2025[206](index=206&type=chunk) [PART II - OTHER INFORMATION](index=48&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material pending legal proceedings - The Company is not a party to any material pending legal proceedings[208](index=208&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) This section reiterates that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes from the risk factors described in the Annual Report on Form 10-K for the year ended January 31, 2025, or the Quarterly Report on Form 10-Q for the quarter ended April 30, 2025[210](index=210&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company reported no unregistered sales of equity securities or use of proceeds. No shares were repurchased under the 2025 Share Repurchase Program during the three months ended July 31, 2025 - No unregistered sales of equity securities or use of proceeds were reported[211](index=211&type=chunk)[212](index=212&type=chunk) - No shares were repurchased under the 2025 Share Repurchase Program during the three months ended July 31, 2025[213](index=213&type=chunk) [Item 3. Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities were reported[214](index=214&type=chunk) [Item 4. Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable[215](index=215&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) This section notes the termination of a Rule 10b5-1 trading plan by a former Senior Vice President - Shelley Webb, former SVP, Chief Legal and People Officer, terminated a Rule 10b5-1 trading plan on May 14, 2025[216](index=216&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of this report, including certifications, XBRL documents, and other corporate governance documents - Exhibits include certifications of the CEO and CFO (31.1, 31.2, 32.1) and XBRL taxonomy documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[218](index=218&type=chunk) [SIGNATURES](index=51&type=section&id=SIGNATURES) The report is duly signed on behalf of PagerDuty, Inc. by its Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer - The report was signed by Jennifer G. Tejada (CEO), Owen Howard Wilson (CFO), and Paul Underwood (Chief Accounting Officer) on September 3, 2025[222](index=222&type=chunk)

Financial Data and Key Metrics Changes - PagerDuty reported revenue of $123 million, representing a 6% year-over-year growth [3][20] - Achieved GAAP profitability for the first time in company history, with a non-GAAP operating margin of 25%, exceeding guidance and showing an 800 basis point year-over-year expansion [3][20] - Annual recurring revenue (ARR) increased to $499 million, reflecting a 5% year-over-year growth [4][20] - Gross margin for Q2 was 86%, at the high end of the target range of 84% to 86% [22] - Cash from operations was $34 million, or 28% of revenue, with free cash flow at $30 million, or 24% of revenue [22] Business Line Data and Key Metrics Changes - New and expansion bookings increased by over 15% sequentially [4] - High-value customer base (spending over $100,000) grew to 868 customers, an increase of 20 customers sequentially and 48 year-over-year [5] - Dollar-based net retention (DBNR) was 102%, down from 104% in Q1, impacted by elevated churn and downgrades [20] Market Data and Key Metrics Changes - International revenue increased by 12% year-over-year, contributing 29% of total revenue [20] - Total paid customers grew to 15,322, adding 75 net new customers in Q2 [21] - Free and paid companies on the platform exceeded 33,000, marking a 13% increase compared to Q2 of the previous year [21] Company Strategy and Development Direction - The company is focusing on a strategic shift towards usage-based pricing models to better align revenue with customer value realization [5][35] - Continued investment in product innovation, including the launch of four new AI agents, which will be released with usage-based pricing models [9][10] - The appointment of a new Chief Revenue Officer aims to accelerate enterprise transformation and improve sales performance [17][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of new and expansion revenue, with strong performance in international markets [34] - The transition to usage-based pricing is expected to enhance customer retention and align monetization with customer value [35][62] - Management anticipates significant incremental ARR growth in the second half of the fiscal year, supported by a maturing enterprise sales motion [20][25] Other Important Information - The company retired $58 million of convertible debt issued in June 2020, enhancing its financial position [23] - PagerDuty was recognized as the AIOps platform of the year in the 2025 AI Breakthrough Awards [16] - The Board expanded the share repurchase program to $200 million, providing flexibility for opportunistic share buybacks [23] Q&A Session Summary Question: What is the outlook for profitability and growth in the IT operations category? - Management noted that new and expansion revenue is showing recovery, with a 15% sequential increase and strong new customer additions [34] Question: What are the priorities for the new Chief Revenue Officer in the upcoming months? - The focus will be on accelerating enterprise transformation, improving sales consistency, and enhancing customer retention [37] Question: How does the company view the quality of its ARR? - The company has shifted towards large, long-term, profitable customers, with over 75% of ARR coming from enterprise companies [47] Question: What is the expected impact of the transition to usage-based pricing? - Management indicated that customers are open to the transition, and early feedback has been positive, with 60% of new products already utilizing this model [58] Question: How is the company addressing the challenges of seat optimization and downgrades? - Management is focused on improving account management and customer success to mitigate downgrades while also seeing growth in platform usage [62]

Financial Performance - Q2 FY26 revenue reached $123 million[10], representing a 6% year-over-year growth[59] - The company's ARR is $499 million[10] - Non-GAAP operating margin was 25%[10] - Free cash flow margin was 24%[10] - Dollar-based net retention (DBNR) was 102%[10] Customer Base - PagerDuty has a total of 15,322 paid customers[10] - The company has 868 customers with ARR greater than $100K[10] Product and Market - PagerDuty operates in a $50 billion market opportunity[47] - The company estimates it has approximately 1% penetration worldwide within its target markets[48] - Incident downtime costs approximately $4,537 per minute, equating to $794,000 per incident[48] Operational Efficiency - A Forrester study indicates a 249% return on investment (ROI) over three years with PagerDuty Operations Cloud[50]