Financial Performance - PagerDuty reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and up from $0.17 per share a year ago, representing an earnings surprise of 26.32% [1] - The company posted revenues of $119.81 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.73% and increasing from $111.17 million year-over-year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $124.07 million, and for the current fiscal year, it is $0.93 on revenues of $502.73 million [7] - The estimate revisions trend for PagerDuty is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Software industry, to which PagerDuty belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $120 million, representing an 8% year-over-year growth, at the top of the guidance range [4][20] - Non-GAAP operating margin reached 20%, exceeding the target by 500 basis points [4] - Annual recurring revenue (ARR) increased to $496 million, reflecting a 7% growth year-over-year [5][20] - Dollar-based net retention was 104%, negatively impacted by higher customer downgrades in the enterprise segment [20] - Gross margin for Q1 was 86%, at the high end of the target range of 84% to 86% [22] - Cash from operations was $31 million, or 26% of revenue, with free cash flow at $29 million, or 24% of revenue [22] Business Line Data and Key Metrics Changes - Significant improvement in net new paid customers, with a total of 15,247 paid customers, adding 127 net new customers, the strongest quarterly acquisition in eight quarters [21] - The commercial segment saw enhancements through a new digital acquisition strategy, leading to improved customer acquisition [5][21] - The enterprise segment is transitioning to a more strategic relationship model, focusing on deeper customer engagement and AI integration [6][8] Market Data and Key Metrics Changes - International revenue increased by 11% year-over-year, contributing 28% of total revenue [20] - The company is actively pursuing FedRAMP moderate authorization to expand its public sector presence, already serving over 700 entities [10] Company Strategy and Development Direction - The company is focused on three key priorities: demonstrating product-market fit for AI offerings, enhancing enterprise engagement to drive retention and expansion, and leveraging automation and AI within operations [17] - A strategic partnership with AWS was strengthened, expanding integration capabilities [9] - The company is evolving its pricing strategy to reduce friction and increase flexibility for customers [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged execution challenges in the enterprise segment but expressed confidence in the transformation efforts and the potential for stronger execution in the second half of the year [38][40] - The macro environment remains uncertain, impacting customer decision-making, but the company is committed to helping customers realize value and efficiencies [62] - The company expects dollar-based net retention to remain between 103% and 105% throughout fiscal 2026 [20] Other Important Information - The company achieved a 90% reduction in scope one and two carbon emissions against the FY23 baseline [16] - A new Chief Customer Officer has been appointed to enhance post-sale engagement and retention strategies [8][63] Q&A Session Summary Question: What is the impact of enterprise pressure on the business? - Management indicated that execution challenges were primarily responsible for the pressure, with a focus on improving customer engagement and sales execution [36][38] Question: How does the full-year guidance reflect the current environment? - The guidance was described as prudent, taking into account organizational transitions and execution challenges faced in Q1 [41][42] Question: What adoption trends are seen in new modules like PagerDuty Advanced? - Early adoption of generative AI solutions is promising, with customers eager to experiment and integrate these offerings into their operations [46][50] Question: Can you elaborate on the enterprise churn and downgrades? - Elevated churn was noted in the SMB segment, while downgrades in the enterprise segment were attributed to mergers and macroeconomic caution [60][62] Question: What are the expectations for net retention rate moving forward? - The company expects net retention to be in the range of 103% to 105%, with opportunities for expansion among existing customers [66][68] Question: How do billings trends reflect underlying business strength? - Trailing twelve-month billings align closely with ARR, providing a clearer picture of business health compared to quarterly fluctuations [71] Question: What is the visibility from large customers regarding multiproduct deals? - Demand for multiproduct platforms remains strong, with a focus on executing transformative deals to capture this demand [107][108]

Financial Data and Key Metrics Changes - PagerDuty reported Q1 revenue of $120 million, reflecting an 8% year-over-year growth, at the top of the guidance range [3][20] - Non-GAAP operating margin reached 20%, exceeding the target by 500 basis points [3] - Annual recurring revenue (ARR) increased to $496 million, with a 7% year-over-year growth [4][20] - Dollar-based net retention was 104%, negatively impacted by higher customer downgrades in the enterprise segment [4][20] - Gross margin for Q1 was 86%, at the high end of the target range [22] Business Line Data and Key Metrics Changes - Significant improvement in net new paid customers, with a total of 15,247 paid customers, adding 127 net new customers, the strongest quarterly acquisition in eight quarters [21] - The company is transitioning to a more strategic approach in enterprise relationships, focusing on comprehensive customer engagement and AI integration [5][6] Market Data and Key Metrics Changes - International revenue increased by 11% year-over-year, contributing 28% of total revenue [20] - The company is actively pursuing FedRAMP moderate authorization to expand its public sector presence, already serving over 700 entities [9] Company Strategy and Development Direction - The company is focused on three key priorities: demonstrating product-market fit for AI offerings, enhancing enterprise engagement to drive retention and expansion, and leveraging automation and AI within operations [17] - PagerDuty is evolving its pricing strategy to reduce friction and increase flexibility for customers [10] - The company is committed to improving sales and marketing execution to enhance overall top-line results [4][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in execution and customer engagement due to organizational transitions but expressed confidence in the path to GAAP profitability [19][18] - The company expects dollar-based net retention to remain between 103% and 105% throughout fiscal 2026 [20] - Management highlighted the importance of proactive customer engagement to mitigate churn and drive expansion [64] Other Important Information - The company achieved a 90% reduction in scope one and scope two carbon emissions against the FY23 baseline [16] - A new chief customer officer has been appointed to enhance post-sale enterprise engagement [6] Q&A Session Summary Question: Concerns about enterprise pressure and market hesitancy - Management indicated that execution issues were the primary concern, not market hesitancy, and noted improvements in new logo growth [34][36] Question: Guidance for revenue growth and precautions taken - Management described the guidance as prudent, reflecting organizational transitions and execution challenges in Q1 [42][44] Question: Adoption trends for new modules - Early adoption of generative AI solutions is promising, with strong customer interest and feedback [48][50] Question: Insights on enterprise churn - Elevated churn was noted in SMB, while enterprise faced downgrades due to mergers and macroeconomic caution [61][62] Question: Expectations for net retention rate - Management expects net retention to be in the range of 103% to 105%, with opportunities for expansion among existing customers [66] Question: Billings performance and indicators of business strength - Trailing twelve-month billings align closely with ARR, providing a clearer picture of business strength [71] Question: Visibility from large customers and multiproduct deals - Demand for multiproduct platforms remains strong, with confidence in executing transformative deals [103]

Investor Presentation Q1 2026 Period ended April 30, 2025 Safe Harbor This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation, are forward-looking statements, including but not limited to: statements regarding the future financial and operational performance and outlook, and strategies, objectives, opportunity, expectations and market positioning of PagerDuty, Inc. ("PagerDuty" or the "Company"). In some cases, you can ide ...

Revenue Growth - First quarter revenue increased 8% year over year to $120 million[1] - Annual Recurring Revenue (ARR) grew 7% year over year to $496 million[1] - For the second quarter of fiscal 2026, PagerDuty expects total revenue of $122.5 million to $124.5 million, representing a growth rate of 6% to 7% year over year[13] - Revenue for the same period was $119,805 thousand, compared to $111,172 thousand in 2024, reflecting a growth of 7.3%[46] Customer Metrics - Customers with ARR over $100 thousand grew 5% to 848 as of April 30, 2025[8] - Dollar-based net retention rate was 104% as of April 30, 2025, compared to 106% a year earlier[8] - Total paid customers increased to 15,247 as of April 30, 2025, up from 15,120 a year earlier[8] Financial Performance - Non-GAAP operating income was $24 million, with a non-GAAP operating margin of 20.3%[5] - Non-GAAP operating income increased to $24,359 thousand in 2025 from $15,329 thousand in 2024, marking a significant rise of 59.5%[48] - Non-GAAP operating margin improved to 20.3% in 2025, up from 13.8% in 2024[48] - Non-GAAP net income attributable to common stockholders was $22,679 thousand in 2025, compared to $16,005 thousand in 2024, representing an increase of 41.6%[48] - The company reported a non-GAAP net income per share, basic, of $0.25 in 2025, up from $0.17 in 2024[48] Cash Flow and Assets - Net cash provided by operating activities was $30,670 thousand for the three months ended April 30, 2025, compared to $28,647 thousand for the same period in 2024, indicating a year-over-year increase of 7.07%[24] - Free cash flow for the period was positive, indicating the company's ability to generate cash in excess of capital investments, enhancing liquidity[42] - Free cash flow for the three months ended April 30, 2025, was $28,986 thousand, compared to $27,098 thousand in 2024, indicating a growth of 7.0%[50] - Total current assets increased to $713,291 thousand as of April 30, 2025, compared to $711,720 thousand on January 31, 2025, reflecting a growth of 0.22%[22] Liabilities and Equity - Total liabilities decreased to $763,806 thousand as of April 30, 2025, down from $779,221 thousand on January 31, 2025, representing a reduction of 1.84%[22] - The company reported a total stockholders' equity of $145,657 thousand as of April 30, 2025, up from $129,828 thousand on January 31, 2025, marking an increase of 12.19%[22] Deferred Revenue and Performance Obligations - Remaining performance obligations were $430 million, with approximately $302 million expected to be recognized as revenue over the next 12 months[8] - The company’s deferred revenue, current, was $237,076 thousand as of April 30, 2025, down from $243,269 thousand on January 31, 2025, a decrease of 2.54%[22] Stock-Based Compensation and Expenses - Stock-based compensation for the three months ended April 30, 2025, was $25,753 thousand, compared to $32,940 thousand in the same period of 2024, reflecting a decrease of 21.66%[24] - The company’s non-GAAP research and development expenses decreased to $22,303 thousand in 2025 from $25,637 thousand in 2024, a reduction of 13.5%[46] Compliance and Authorization - PagerDuty achieved FedRAMP Low Authorization, indicating compliance with federal security requirements[8]

Core Points - Precision Drilling Corporation is holding its 2025 Annual and Special Meeting of Shareholders on May 15, 2025, at 10:00 a.m. MST in a virtual-only format, allowing equal participation for all shareholders regardless of location [1] - Shareholders can access the meeting online, listen, ask questions, and vote in real time if connected to the internet, with advance proxy voting available as in previous years [2][3] - Additional information regarding participation and voting instructions is available in Precision's Management Information Circular and Virtual AGM User Guide on their website [3] Company Overview - Precision Drilling is a leading provider of safe and environmentally responsible services to the energy industry, offering access to a fleet of Super Series drilling rigs and a digital technology portfolio known as Alpha [4] - The company emphasizes its commitment to reducing environmental impact through its EverGreen suite of environmental solutions and provides well service rigs, camps, and rental equipment supported by skilled personnel [4] - Precision is headquartered in Calgary, Alberta, Canada, and is listed on the Toronto Stock Exchange under the symbol "PD" and on the New York Stock Exchange under "PDS" [5]

Group 1 - Precision Drilling Corporation has filed its Management Information Circular in connection with the 2025 Annual and Special Meeting of Shareholders [1] - The Annual Meeting is scheduled for May 15, 2025, at 10:00 a.m. (Mountain Time) and will be held in a virtual-only format [2] - Registered Shareholders must hold their common shares as of March 28, 2025, to participate in the Annual Meeting [3] Group 2 - Precision 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 [4] - Precision's services are enhanced by the EverGreen™ suite of environmental solutions, aimed at reducing the environmental impact of operations [4] Group 3 - Precision is headquartered in Calgary, Alberta, Canada, and is listed on the Toronto Stock Exchange under the symbol "PD" and on the New York Stock Exchange under the symbol "PDS" [5]

Core Insights - PagerDuty (PD) shares have recently declined by 6.2% over the past week, but a hammer chart pattern suggests potential support and a possible trend reversal [1][2] - Wall Street analysts are increasingly optimistic about PD's future earnings, which supports the likelihood of a trend reversal [2][6] Technical Analysis - The hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick, suggesting that the stock may have found support during a downtrend [3][4] - This pattern signals that bears may have lost control, and the emergence of buying interest could lead to a price reversal [4] Earnings Estimates - There has been a notable upward trend in earnings estimate revisions for PD, with a 66.9% increase in the consensus EPS estimate for the current year over the last 30 days, indicating analysts expect better earnings than previously predicted [6][7] - A positive trend in earnings estimate revisions is typically associated with price appreciation in the near term [6] Zacks Rank - PD currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [8] - The Zacks Rank serves as a timing indicator, suggesting that PD's prospects are beginning to improve, further supporting the potential for a trend reversal [8]

PagerDuty (PD) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this software developer, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revis ...

Core Viewpoint - The article expresses a positive outlook on PagerDuty (NYSE: PD) due to its strategic shift towards targeting enterprise customers and the anticipated increase in demand resulting from the Federal Reserve's rate cuts [1]. Company Focus - PagerDuty is shifting its focus to enterprise customers, which is expected to enhance its market position and growth potential [1]. Investment Strategy - The investment approach highlighted in the article combines value investing principles with a focus on long-term growth, emphasizing the importance of acquiring quality companies at a discount to their intrinsic value [1].