[Executive Summary](index=1&type=section&id=Executive%20Summary) PagerDuty achieved GAAP profitability, solid international growth, and increased paid customer additions, appointing a new CRO [Q2 FY26 Performance Overview](index=1&type=section&id=Q2%20FY26%20Performance%20Overview) PagerDuty achieved GAAP profitability with $123 million revenue and $499 million ARR, driven by international growth and customer additions - PagerDuty achieved **GAAP profitability** in Q2 FY26[2](index=2&type=chunk) - Solid growth observed across international markets and **paid customer additions** outpaced last year's full-year performance[2](index=2&type=chunk) - New Chief Revenue Officer appointed to lead global go-to-market strategy and drive revenue growth[1](index=1&type=chunk)[2](index=2&type=chunk) | Metric | Q2 FY26 Performance | | :-------------------------------- | :------------------ | | Revenue | $123 million (+6% YoY) | | Annual Recurring Revenue (ARR) | $499 million (+5% YoY) | | Operating Income (GAAP) | Nearly $4 million | | Operating Income (Non-GAAP) | $31 million | [Second Quarter Fiscal 2026 Financial Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%202026%20Financial%20Highlights) This section details PagerDuty's GAAP and non-GAAP financial performance, including revenue, operating income, and cash flow [GAAP Financial Performance](index=1&type=section&id=GAAP%20Financial%20Performance) PagerDuty reported GAAP revenue of $123.4 million (+6.4% YoY) and achieved a positive operating income of $3.6 million | Metric (GAAP) | Q2 FY26 (3 months) | Q2 FY25 (3 months) | YoY Change | | :--------------------------- | :----------------- | :----------------- | :--------- | | Revenue | $123.4 million | $115.9 million | +6.4% | | Operating Income | $3.6 million | $(16.0) million | N/A | | Operating Margin | 2.9% | (13.8)% | +16.7 pp | | Net Income per Diluted Share | $0.10 | $(0.14) | N/A | [Non-GAAP Financial Performance](index=1&type=section&id=Non-GAAP%20Financial%20Performance) PagerDuty reported non-GAAP operating income of $31.4 million (25.4% margin) and diluted EPS of $0.30 | Metric (Non-GAAP) | Q2 FY26 (3 months) | Q2 FY25 (3 months) | YoY Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Operating Income | $31.4 million | $20.1 million | +56.2% | | Operating Margin | 25.4% | 17.3% | +8.1 pp | | Net Income per Diluted Share | $0.30 | $0.21 | +42.9% | [Cash Flow and Liquidity](index=1&type=section&id=Cash%20Flow%20and%20Liquidity) PagerDuty generated **$34.0 million** in operating cash and **$30.2 million** in free cash flow, maintaining a strong cash position | Metric | Q2 FY26 (3 months) | Q2 FY25 (3 months) | | :---------------------------------------- | :----------------- | :----------------- | | Net cash provided by operating activities | $34.0 million | $35.8 million | | Free cash flow | $30.2 million | $33.3 million | | Cash, cash equivalents, and investments (as of July 31, 2025) | $567.9 million | N/A | [Second Quarter and Recent Highlights](index=2&type=section&id=Second%20Quarter%20and%20Recent%20Highlights) This section covers key business metrics, product innovations, industry recognition, and leadership changes [Key Business Metrics](index=2&type=section&id=Key%20Business%20Metrics) PagerDuty experienced continued growth in its customer base and ARR, despite a slight decrease in net retention rate | Metric | As of July 31, 2025 | As of July 31, 2024 | YoY Change | | :------------------------------ | :------------------ | :------------------ | :--------- | | ARR | $499 million | N/A | +5% | | Customers with ARR over $100k | 868 | 820 | +6% | | Dollar-based net retention rate | 102% | 106% | -4 pp | | Total paid customers | 15,322 | 15,044 | +1.8% | | Total free and paid customers | >33,000 | N/A | +13% | [Product Innovations and Industry Recognition](index=2&type=section&id=Product%20Innovations%20and%20Industry%20Recognition) PagerDuty launched new AI-powered integrations and received multiple industry accolades, reinforcing its AIOps leadership - Released AI-powered, chat-first integration between PagerDuty Advance and Amazon Q Business[8](index=8&type=chunk) - Recognized as a Leader and Outperformer in the 2025 GigaOm Radar for Incident Response Platforms Report for a third consecutive year[8](index=8&type=chunk) - Named a leader in GigaOm Radar for AIOps for the fourth year and awarded as the AIOps Platform of the Year in the 2025 AI Breakthrough Awards[8](index=8&type=chunk) [Leadership and Customer Engagements](index=2&type=section&id=Leadership%20and%20Customer%20Engagements) PagerDuty appointed Todd McNabb as Chief Revenue Officer and reported new customer acquisitions and expansions - Todd McNabb appointed as Chief Revenue Officer, effective September 29, 2025, to lead global go-to-market strategy and drive revenue growth and retention[8](index=8&type=chunk) - New customer lands and expansions include Bupa Limited, ChainLink Labs Inc., The Lego Group, Shopify, and Starhub Ltd[8](index=8&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) This section provides PagerDuty's financial guidance for the upcoming third quarter and the full fiscal year 2026 [Third Quarter Fiscal 2026 Guidance](index=3&type=section&id=Third%20Quarter%20Fiscal%202026%20Guidance) PagerDuty expects Q3 FY26 total revenue between **$124.0 million** and **$126.0 million**, with non-GAAP diluted EPS of **$0.24** to **$0.25** | Metric | Q3 FY26 Guidance | YoY Growth | | :---------------------------------------- | :--------------- | :--------- | | Total revenue | $124.0M - $126.0M | 4% - 6% | | Non-GAAP net income per diluted share | $0.24 - $0.25 | N/A | [Full Fiscal Year 2026 Guidance](index=3&type=section&id=Full%20Fiscal%20Year%202026%20Guidance) PagerDuty updated its FY26 guidance, expecting total revenue between **$493.0 million** and **$497.0 million**, and diluted EPS of **$1.00** to **$1.04** | Metric | FY26 Guidance | Previous Guidance | YoY Growth | | :---------------------------------------- | :------------ | :---------------- | :--------- | | Total revenue | $493.0M - $497.0M | $493.0M - $499.0M | 5% - 6% | | Non-GAAP net income per diluted share | $1.00 - $1.04 | $0.95 - $1.00 | N/A | [About PagerDuty, Inc.](index=4&type=section&id=About%20PagerDuty,%20Inc.) This section provides an overview of PagerDuty as a company and its core AI-powered digital operations management platform [Company Overview](index=4&type=section&id=Company%20Overview) PagerDuty, Inc. is a global leader in digital operations management, offering an AI-powered platform for business resilience - PagerDuty, Inc. (NYSE:PD) is a global leader in digital operations management[16](index=16&type=chunk) - The PagerDuty Operations Cloud is an AI-powered platform that empowers business resilience and drives operational efficiency[16](index=16&type=chunk) - Trusted by nearly half of both the Fortune 500 and the Forbes AI 50, and approximately two-thirds of the Fortune 100[16](index=16&type=chunk) [The PagerDuty Operations Cloud](index=4&type=section&id=The%20PagerDuty%20Operations%20Cloud) The PagerDuty Operations Cloud is an AI-powered platform that automates and orchestrates the entire incident management lifecycle - The PagerDuty Operations Cloud is an AI-powered platform that automates and orchestrates the entire incident management lifecycle[17](index=17&type=chunk) - Empowers teams to identify and diagnose disruptions in real time and mobilize the right teams to quickly streamline workflows[17](index=17&type=chunk) - Essential for delivering flawless, always-on digital experiences that organizations and consumers expect today[17](index=17&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(GAAP)) This section presents PagerDuty's GAAP financial statements, including statements of operations, balance sheets, and cash flows [Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The statements of operations detail PagerDuty's GAAP financial performance, including revenue, gross profit, operating expenses, and net income | Metric | 3 months ended July 31, 2025 | 3 months ended July 31, 2024 | 6 months ended July 31, 2025 | 6 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. common stockholders | $9,777 | $(13,242) | $3,280 | $(37,298) | | Diluted EPS | $0.10 | $(0.14) | $0.03 | $(0.40) | [Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheets provide a snapshot of PagerDuty's financial position, detailing assets, liabilities, and stockholders' equity | Metric | July 31, 2025 | January 31, 2025 | | :--------------------------- | :------------ | :--------------- | | Total assets | $891,531 | $927,266 | | Total liabilities | $693,850 | $779,221 | | Total stockholders' equity | $180,709 | $129,828 | | Cash and cash equivalents | $339,712 | $346,460 | | Investments | $228,142 | $224,366 | [Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The statements of cash flows detail the sources and uses of cash for operating, investing, and financing activities | Metric | 3 months ended July 31, 2025 | 3 months ended July 31, 2024 | 6 months ended July 31, 2025 | 6 months ended July 31, 2024 | | :------------------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $33,974 | $35,769 | $64,644 | $64,416 | | Net cash used in investing activities | $(7,178) | $(3,800) | $(8,860) | $(6,621) | | Net cash used in financing activities | $(59,085) | $(28,944) | $(63,040) | $(35,205) | | Net change in cash, cash equivalents, and restricted cash | $(32,511) | $3,117 | $(7,143) | $22,567 | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines PagerDuty's non-GAAP financial measures and provides reconciliations to their GAAP equivalents [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) This section defines PagerDuty's non-GAAP financial measures and explains the rationale for excluding certain GAAP expenses - Non-GAAP financial measures are presented to provide consistency and comparability with past financial performance and assist in comparisons with other companies[26](index=26&type=chunk) - Key exclusions from non-GAAP measures include stock-based compensation, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, amortization of debt issuance costs, restructuring costs, shareholder matters, adjustment attributable to redeemable non-controlling interest, and income tax effects[28](index=28&type=chunk)[30](index=30&type=chunk)[36](index=36&type=chunk) - Free cash flow is defined as net cash provided by operating activities, less cash used for purchases of property and equipment and capitalization of internal-use software costs[42](index=42&type=chunk) [Reconciliation of Gross Profit and Operating Expenses](index=11&type=section&id=Reconciliation%20of%20Gross%20Profit%20and%20Operating%20Expenses) This section reconciles GAAP gross profit and operating expenses to their non-GAAP counterparts for specified periods | Metric | 3 months ended July 31, 2025 | 3 months ended July 31, 2024 | | :--------------------------- | :--------------------------- | :--------------------------- | | GAAP Gross profit | $104,410 | $95,855 | | Non-GAAP Gross profit | $106,254 | $99,668 | | GAAP Research and development | $30,897 | $35,088 | | Non-GAAP Research and development | $21,119 | $22,755 | | GAAP Sales and marketing | $44,456 | $50,966 | | Non-GAAP Sales and marketing | $38,396 | $42,082 | | GAAP General and administrative | $25,491 | $25,828 | | Non-GAAP General and administrative | $15,332 | $14,720 | [Reconciliation of Operating Income and Net Income](index=13&type=section&id=Reconciliation%20of%20Operating%20Income%20and%20Net%20Income) This section reconciles GAAP operating income and net income to their non-GAAP equivalents, detailing the impact of adjustments | Metric | 3 months ended July 31, 2025 | 3 months ended July 31, 2024 | | :------------------------------------------------------- | :--------------------------- | :--------------------------- | | GAAP Income (loss) from operations | $3,566 | $(16,027) | | Non-GAAP Operating income | $31,407 | $20,111 | | GAAP Net income (loss) attributable to PagerDuty, Inc. common stockholders | $9,777 | $(13,242) | | Non-GAAP Net income attributable to PagerDuty, Inc. common stockholders | $28,276 | $20,331 | | GAAP Diluted EPS | $0.10 | $(0.14) | | Non-GAAP Diluted EPS | $0.30 | $0.21 | [Reconciliation of Free Cash Flow](index=16&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) This section reconciles net cash from operating activities to free cash flow, detailing deductions for capital expenditures | Metric | 3 months ended July 31, 2025 | 3 months ended July 31, 2024 | | :---------------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $33,974 | $35,769 | | Purchases of property and equipment | $(874) | $(637) | | Capitalization of software costs | $(2,893) | $(1,849) | | Free cash flow | $30,207 | $33,283 | [Additional Information](index=3&type=section&id=Additional%20Information) This section includes important disclaimers regarding forward-looking statements and details for accessing supplemental information [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section provides a standard disclaimer regarding forward-looking statements, outlining associated risks and uncertainties - Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond the company's control[14](index=14&type=chunk) - Factors that could cause actual results to differ materially include the ability to achieve and maintain future profitability, sustain and manage growth, attract and retain customers, compete effectively, adapt to technology, and the impact of global economic conditions[14](index=14&type=chunk) - The company undertakes no intention or obligation to update or revise any forward-looking statements[15](index=15&type=chunk) [Conference Call and Supplemental Information](index=3&type=section&id=Conference%20Call%20and%20Supplemental%20Information) PagerDuty provided details for its Q2 FY26 conference call and webcast, and information on accessing supplemental financial data - PagerDuty hosted a conference call and live webcast for analysts and investors on September 3, 2025, at 2:00 p.m. Pacific Time[11](index=11&type=chunk) - Supplemental financial and other information can be accessed through PagerDuty's investor relations website at investor.pagerduty.com[12](index=12&type=chunk) - PagerDuty uses its investor relations website as the means of complying with its disclosure obligations under Regulation FD[12](index=12&type=chunk)

Core Viewpoint - Precision Drilling Corporation reported stronger than anticipated financial and operational results for the second quarter of 2025, driven by excellent free cash flow, new contracts, and strong demand for its Super Series rig fleet [2][5][21]. Financial Highlights - Revenue for Q2 2025 was $407 million, a decrease of 5.3% from $429 million in Q2 2024, primarily due to lower U.S. and international activity [6][14]. - Adjusted EBITDA was $108 million, down 6.1% from $115 million in the same quarter last year, with a consistent EBITDA margin of 27% [6][21]. - Net earnings attributable to shareholders were $16 million or $1.21 per share, compared to $21 million or $1.44 per share in Q2 2024, marking the 12th consecutive quarter of positive earnings [5][21]. - Cash provided by operations was $147 million, allowing the company to repay $74 million of debt and repurchase $14 million of common shares [7][21]. Operational Highlights - The average number of active drilling rigs in Canada was 50, slightly up from 49 in Q2 2024, while U.S. active rigs averaged 33, down from 36 [8][16]. - Canadian revenue per utilization day increased to $37,725 from $36,075 year-over-year, driven by customer-funded rig upgrades [6][21]. - U.S. revenue per utilization day decreased to $31,113 from $33,227, reflecting lower industry activity [6][21]. - International operations generated $36 million in revenue with seven active rigs, down from eight in Q2 2024 [10][21]. Strategic Initiatives - The company revised its 2025 capital budget to $240 million from $200 million to support upgrades of 22 Super Series rigs, responding to increased customer demand [12][26]. - Precision aims to maximize free cash flow through disciplined capital deployment and enhance shareholder returns via debt reduction and share repurchases [22][26]. - The company is positioned to further adjust capital spending based on evolving customer demand, with a focus on technological advancements in its rig fleet [12][22]. Market Outlook - In Canada, increased takeaway capacity from the Trans Mountain pipeline expansion is expected to support heavy oil activity, while LNG Canada’s first shipment is anticipated to drive demand for Super Triple rigs [27][30]. - In the U.S., natural gas drilling is expected to increase as customers become more optimistic about LNG off-take and AI demand, with a focus on natural gas basins like Haynesville and Marcellus [28][30]. - Internationally, the company maintains a steady level of activity with five rigs in Kuwait and two in Saudi Arabia, under long-term contracts extending into 2027 and 2028 [10][29].

Company Overview - PagerDuty (PD) shares increased by 6.9% to $15.72 in the last trading session, with a higher-than-average trading volume, contrasting with a 1.3% loss over the past four weeks [1] - The company is experiencing strong demand for its AI-enhanced incident management, AIOps, and automation solutions, particularly in managing AI infrastructure and operations [1] Earnings Expectations - PagerDuty is expected to report quarterly earnings of $0.22 per share, reflecting a year-over-year increase of 4.8%, with revenues projected at $123.59 million, up 6.6% from the previous year [2] - However, the consensus EPS estimate for the quarter has been revised down by 33.3% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [3] Industry Context - PagerDuty is part of the Zacks Internet - Software industry, where another company, Phunware (PHUN), saw its shares decrease by 1.2% to $3.21, despite a 6.9% return over the past month [3] - Phunware's consensus EPS estimate remains unchanged at -$0.15, representing a year-over-year change of 53.1%, and it currently holds a Zacks Rank of 3 (Hold) [4]

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 second quarter results after the market closes on Tuesday, July 29, 2025 [1] - A conference call is scheduled for 11:00 a.m. MT (1:00 p.m. ET) on Wednesday, July 30, 2025, to discuss the results [1] - Participants can register for the conference call to receive a dial-in number and unique PIN for questions [1] Webcast and Replay - The conference call will also be webcast, and a replay will be available on Precision's website for 12 months [2]

PagerDuty (PD) 2025 Conference Summary Company Overview - PagerDuty is described as the most resilient, secure, and scalable digital operations platform for large enterprises and innovative technology companies, evolving from a developer-focused on-call automation tool to a comprehensive incident management platform [2][3] Core Industry Insights - The company emphasizes the growing importance of managing AI operations, highlighting its role in helping both native AI companies and large enterprises ensure the quality, reliability, and security of their AI investments [3] - PagerDuty's platform integrates over 700 ecosystem integrations and utilizes a first-class API to automate the identification and resolution of technology issues, which is crucial as businesses increasingly rely on modern technology stacks [2][3] Financial Performance - Revenue grew by 8%, reaching the top of guidance, marking the best quarter in eight quarters for new customer acquisitions [10][11] - Non-GAAP operating margins were reported at 20%, exceeding guidance, with a clear path to GAAP profitability anticipated in the next fiscal year [19][53] - Free cash flow margins were reported at 24% in Q1, indicating healthy cash flow generation [19] Customer Dynamics - The company faced challenges with enterprise retention, experiencing unexpected downgrades that affected dollar-based net retention, attributed to execution issues rather than systemic problems [11][12] - A significant transition in the enterprise sales team is underway, with a focus on hiring reps with enterprise sales experience and relationships in the CIO and CTO community [12][13] - The commercial segment showed elevated churn, particularly among startups that were overvalued and unable to sustain growth, while interest from well-funded generative AI companies is increasing [44][46] Strategic Initiatives - PagerDuty is evolving its pricing model from a seat-based structure to a consumption-based model, aligning pricing with the value delivered to customers [15][16] - The company is focusing on improving customer engagement and understanding the value realization of its products to reduce churn and enhance retention [35][36] - A share repurchase program of $150 million was announced, reflecting a commitment to returning capital to shareholders while pursuing long-term profitable growth [50][51] Market Environment - The macroeconomic environment remains uncertain, impacting customer behavior and negotiations, with expectations of continued volatility due to geopolitical factors and economic conditions [24][25] - Despite external uncertainties, there is a transformative opportunity in technology, particularly with the adoption of AI, which is driving internal efficiency gains for PagerDuty and its customers [31][32] Leadership and Organizational Changes - The search for a new Chief Revenue Officer (CRO) is ongoing, with a focus on finding a candidate with global enterprise sales experience and a competitive mindset [58][59] - The company is undergoing cultural and operational changes to enhance engagement and performance standards across its sales organization [60][61] Conclusion - PagerDuty is positioned to capitalize on the growing demand for automated incident management solutions, particularly in the context of AI operations, while navigating challenges in customer retention and market volatility. The strategic focus on evolving its sales approach, pricing model, and customer engagement is expected to drive future growth and profitability.

I gave a hold rating to PagerDuty (NYSE: PD ) in March as I was concerned about the growth outlook that was weighed down by slowing growth, go-to-market [GTM] issues, and macro headwinds. Although PD's 1Q26 results showed encouraging signs that PD's long-term 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 gr ...

Group 1 - The fiscal first quarter results from PagerDuty (NYSE: PD) indicate that the company has been underperforming in the market this year [1] - PagerDuty is a digital operations management platform that is making progress in its business operations despite recent disappointments [1] Group 2 - The article emphasizes the importance of conducting due diligence before making any investment decisions related to the companies mentioned [3] - Investors are encouraged to seek advice from financial advisers or brokers prior to making investment choices [3]

Core Insights - PagerDuty reported revenue of $119.81 million for the quarter ended April 2025, reflecting a year-over-year increase of 7.8% [1] - The earnings per share (EPS) for the quarter was $0.24, up from $0.17 in the same quarter last year, indicating a strong performance [1] - The reported revenue exceeded the Zacks Consensus Estimate of $118.94 million by 0.73%, while the EPS surpassed the consensus estimate of $0.19 by 26.32% [1] Financial Performance Metrics - Total billings for the quarter were $113.77 million, which fell short of the estimated $117.72 million by analysts [4] - The number of customers reached 15,247, exceeding the two-analyst average estimate of 15,088 [4] - The dollar-based net retention rate was reported at 104%, slightly below the two-analyst average estimate of 105.3% [4] Stock Performance - Over the past month, shares of PagerDuty have returned +3.5%, compared to a +6.4% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance against the broader market in the near term [3]

Financial Performance - Annual Recurring Revenue (ARR) increased to $496.0 million as of April 30, 2025, up from $463.4 million in 2024, representing a growth of 7.8%[119] - Revenue for the three months ended April 30, 2025, was $119.8 million, an increase of $8.6 million or 7.8% from $111.2 million in the same period of 2024[126] - Gross profit for the same period was $100.6 million, resulting in a gross margin of 84.0%, up from 82.6% in 2024[123] - Non-GAAP gross profit increased from $96.036 million in 2024 to $103.029 million in 2025, with a non-GAAP gross margin of 86.0%[155] - Non-GAAP operating income increased from $15.329 million in 2024 to $24.359 million in 2025, resulting in a non-GAAP operating margin of 20.3%[157] - Non-GAAP net income attributable to PagerDuty, Inc. common stockholders for the three months ended April 30, 2025, was $22,679,000, compared to $16,005,000 for the same period in 2024, representing a 41.5% increase[159] Customer Metrics - The total number of customers reached 15,247 as of April 30, 2025, compared to 15,120 in 2024, with customers generating over $100,000 in ARR increasing to 848 from 811[120] - The dollar-based net retention rate was 104% for the last 12 months ended April 30, 2025, down from 106% in 2024, indicating a slight decline in customer retention[122] Operating Expenses - Operating expenses totaled $110.9 million for the three months ended April 30, 2025, down from $113.6 million in 2024, with a notable decrease in research and development expenses[123] - Research and development expenses decreased by $3.475 million, or 9.3%, from $37.523 million in 2024 to $34.048 million in 2025[131] - Sales and marketing expenses increased by $1.546 million, or 3.2%, from $48.499 million in 2024 to $50.045 million in 2025[134] - General and administrative expenses decreased by $0.685 million, or 2.5%, from $27.540 million in 2024 to $26.855 million in 2025[135] - Total operating expenses decreased by $2.614 million, or 2.3%, from $113.562 million in 2024 to $110.948 million in 2025[130] Cash Flow and Liquidity - Free cash flow for the three months ended April 30, 2025, was $28,986,000, up from $27,098,000 in 2024, reflecting a 7.0% increase[161] - As of April 30, 2025, the company had cash and cash equivalents totaling $597.1 million, which is expected to support working capital and capital expenditure requirements for at least the next 12 months[162] - Net cash provided by operating activities increased by $2,023,000, from $28,647,000 in 2024 to $30,670,000 in 2025, driven by a 7.8% increase in revenue[168] - Net cash used in investing activities decreased by $1,139,000, from $2,821,000 in 2024 to $1,682,000 in 2025[168] Debt and Share Repurchase - The company’s total debt obligations as of April 30, 2025, amounted to $451.4 million, with $57.5 million classified as short-term[167] - The company announced a share repurchase program in March 2025, authorizing up to $150.0 million for repurchases, with no shares repurchased as of April 30, 2025[165] - The company repurchased 5,223,071 shares under the 2024 Share Repurchase Program at an average price of $19.15, totaling $100.0 million[166] Other Financial Metrics - The net loss attributable to PagerDuty, Inc. was $7.2 million for the three months ended April 30, 2025, compared to a net loss of $17.1 million in the same period of 2024[123] - Cost of revenue decreased to $19.2 million in 2025 from $19.3 million in 2024, contributing to improved gross margin[129] - Interest income decreased by $0.969 million, or 13.9%, from $6.980 million in 2024 to $6.011 million in 2025[137] - Interest expense increased by $0.216 million, or 10.1%, from $2.148 million in 2024 to $2.364 million in 2025[139] - The provision for income taxes increased by $0.620 million, or 321.2%, from $0.193 million in 2024 to $0.813 million in 2025[137] - The company expects research and development expenses to generally increase in dollar value as the business grows[130] Operational Capabilities - The company continues to focus on expanding its enterprise customer base, which constitutes the majority of its revenue[112] - PagerDuty's platform integrates with over 700 systems, enhancing its operational capabilities and customer service offerings[111] - Foreign exchange positively impacted cash by $335,000 in the three months ended April 30, 2025, compared to a negative impact of $115,000 in the same period in 2024[174]

Company Overview - PagerDuty, Inc. (NYSE: PD) is an incident-response SaaS company focused on preventing digital system failures, positioning itself in the automation and IT firefighting sector [1] Business Model - The company's platform integrates with cloud services and third-party applications, enhancing its utility in managing IT incidents [1]