PagerDuty, Inc. (NYSE:PD) Q4 2023 Earnings Conference Call March 15, 2023 5:00 PM ET Company Participants Tony Righetti - Vice President of Investor Relations Jennifer Tejada - Chairman and Chief Executive Officer Howard Wilson - Chief Financial Officer Conference Call Participants Sanjit Singh - Morgan Stanley Matthew Hedberg - RBC Capital Markets Joel Fishbein - Truist Securities, Inc. Chad Bennett - Craig-Hallum Capital Group LLC Matthew Stotler - William Blair & Company LLC Kingsley Crane - Canaccord Ge ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38856 PAGERDUTY, INC. (Exact name of registrant as specified in its char ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38856 (Exact name of registrant as specified in its charter) __________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-K _________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the annual period ended January 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38856 PAGERDUTY, INC. (Exact name of registrant as specified in its charter ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38856 PAGERDUTY, INC. (Exact name of registrant as specified in its c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38856 PAGERDUTY, INC. (Exact name of registrant as specified in its char ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38856 PAGERDUTY, INC. (Exact name of registrant as specified in its cha ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-K _________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the annual period ended January 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38856 PAGERDUTY, INC. (Exact name of registrant as specified in its charter ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2020 WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) or (Exact name of registrant as specified in its charter) _________________________ (State or other jurisdiction of incorporation or organization) Delaware 27-2793871 (I.R.S. Employer Identification Number) 600 Townsend St., ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents PagerDuty's unaudited condensed consolidated financial statements for the quarterly period ended July 31, 2020 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$719.2 million** from **$435.4 million** as of July 31, 2020, driven by convertible notes and rising liabilities Condensed Consolidated Balance Sheets (in thousands) | | As of July 31, 2020 | As of January 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $661,275 | $404,991 | | **Total assets** | $719,187 | $435,398 | | **Total current liabilities** | $129,771 | $115,032 | | **Convertible senior notes, net** | $210,976 | $— | | **Total liabilities** | $377,316 | $127,460 | | **Total stockholders' equity** | $341,871 | $307,938 | | **Total liabilities and stockholders' equity** | $719,187 | $435,398 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenue grew **25.6%** for the quarter ended July 31, 2020, resulting in a net loss of **$14.7 million** Statements of Operations Highlights (in thousands) | | Three Months Ended July 31, 2020 | Three Months Ended July 31, 2019 | Six Months Ended July 31, 2020 | Six Months Ended July 31, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $50,714 | $40,361 | $100,500 | $77,675 | | **Gross Profit** | $44,077 | $34,255 | $86,900 | $66,083 | | **Loss from Operations** | $(13,449) | $(14,381) | $(26,049) | $(27,110) | | **Net Loss** | $(14,688) | $(12,570) | $(26,147) | $(24,634) | | **Net Loss per Share** | $(0.19) | $(0.17) | $(0.33) | $(0.45) | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%20Equity) Stockholders' equity increased to **$341.9 million** for the six months ended July 31, 2020, driven by convertible notes and stock compensation - Key drivers for the change in stockholders' equity during the six months ended July 31, 2020 include the issuance of convertible senior notes, stock-based compensation, purchase of capped calls, and the period's net loss[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow improved to **$1.9 million** provided, with **$251.2 million** provided by financing activities from convertible notes Cash Flow Summary (in thousands) | | Six Months Ended July 31, 2020 | Six Months Ended July 31, 2019 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $1,862 | $(5,407) | | **Net cash used in investing activities** | $(475) | $(36,715) | | **Net cash provided by financing activities** | $251,227 | $218,168 | | **Net increase in cash, cash equivalents, and restricted cash** | $252,614 | $176,046 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, **$287.5 million** convertible notes, new lease accounting, and geographic revenue breakdown - In June 2020, the Company issued **$287.5 million** in 1.25% Convertible Senior Notes due 2025, with net proceeds of **$278.2 million** after discounts and costs[35](index=35&type=chunk)[82](index=82&type=chunk) - The company adopted the new lease accounting standard (Topic 842) on February 1, 2020, resulting in the recognition of a **$29.1 million** operating right-of-use asset and a **$35.9 million** operating lease liability[46](index=46&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) Revenue by Geography (in thousands) | | Six Months Ended July 31, 2020 | Six Months Ended July 31, 2019 | | :--- | :--- | :--- | | **United States** | $77,269 | $61,060 | | **International** | $23,231 | $16,615 | | **Total** | $100,500 | $77,675 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance for the three and six months ended July 31, 2020, covering key metrics, COVID-19 impact, and trends [COVID-19 Update](index=30&type=section&id=COVID-19%20Update) Increased churn and declining users due to COVID-19 led to operational changes like remote work and virtual events - The company has seen an increase in churn and a decline in the number of users, believed to be associated with the impact of COVID-19, and anticipates potential declines in customer demand and spending[131](index=131&type=chunk) - In March 2020, all offices were temporarily closed, and employees transitioned to remote work; the company also converted its global customer conference, Summit, to a virtual event[133](index=133&type=chunk)[135](index=135&type=chunk) [Key Business Metrics](index=32&type=section&id=Key%20Business%20Metrics) Customers grew to **13,346** as of July 31, 2020, but dollar-based net retention rate decreased to **116%** due to COVID-19 Customer Count | | As of July 31, 2020 | As of July 31, 2019 | | :--- | :--- | :--- | | **Customers** | 13,346 | 12,045 | | **Customers > $100k in ARR** | 369 | 274 | Dollar-based Net Retention Rate | | Last 12 Months Ended July 31, 2020 | Last 12 Months Ended July 31, 2019 | | :--- | :--- | :--- | | **Dollar-based net retention rate** | 116% | 132% | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Revenue grew **26%** for the quarter and **29%** for the six-month period, with improved gross margin and reduced operating expenses as a percentage of revenue Revenue Growth | Period | 2020 Revenue | 2019 Revenue | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Three Months** | $50,714 | $40,361 | $10,353 | 26% | | **Six Months** | $100,500 | $77,675 | $22,825 | 29% | - Gross margin for the three months ended July 31, 2020 improved to **87%** from **85%** in the prior year, attributed to efficiency from the company's cloud-native infrastructure[160](index=160&type=chunk) - Operating expenses as a percentage of revenue decreased from **121%** to **113%** for the three-month period and from **120%** to **112%** for the six-month period year-over-year, primarily due to revenue growing faster than expenses[158](index=158&type=chunk) [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP operating loss was **$3.5 million** (a **-7%** margin) with positive free cash flow of **$1.4 million** for Q2 FY2021 Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss (in thousands) | | Three Months Ended July 31, 2020 | Three Months Ended July 31, 2019 | | :--- | :--- | :--- | | **Loss from operations (GAAP)** | $(13,449) | $(14,381) | | Add: Stock-based compensation | 9,968 | 7,233 | | **Non-GAAP operating loss** | $(3,481) | $(7,148) | | **Non-GAAP operating margin** | (7)% | (18)% | Free Cash Flow (in thousands) | | Three Months Ended July 31, 2020 | Three Months Ended July 31, 2019 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $2,047 | $2,159 | | Less: Purchases of property and equipment | (579) | (829) | | Less: Capitalization of internal-use software costs | (111) | — | | **Free cash flow** | $1,357 | $1,330 | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity totaled **$601.6 million** as of July 31, 2020, bolstered by **$287.5 million** convertible notes, sufficient for the next 12 months - Principal sources of liquidity as of July 31, 2020, were cash, cash equivalents, and investments totaling **$601.6 million**[185](index=185&type=chunk) - In June 2020, the company issued **$287.5 million** in convertible notes, resulting in net proceeds of **$242.5 million** after deducting discounts, issuance costs, and the purchase of capped calls[184](index=184&type=chunk) - A substantial source of cash is from deferred revenue, which stood at **$101.2 million** as of July 31, 2020[187](index=187&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risk, except for interest rate risk from the **$287.5 million** convertible senior notes - The primary new market risk is interest rate risk related to the **$287.5 million** in convertible senior notes issued in June 2020; the fair market value of these fixed-rate notes will generally decrease as interest rates rise and increase as they fall[206](index=206&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of July 31, 2020, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of July 31, 2020, the company's disclosure controls and procedures were effective at a reasonable assurance level[208](index=208&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[210](index=210&type=chunk) Part II - OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material pending legal proceedings - PagerDuty is not a party to any material pending legal proceedings[212](index=212&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors, except for new risks related to the **$287.5 million** convertible notes and potential dilution [Risks Related to our Outstanding Convertible Notes](index=46&type=section&id=Risks%20Related%20to%20our%20Outstanding%20Convertible%20Notes) Risks of **$287.5 million** convertible notes include insufficient cash flow, repurchase obligations, potential stock dilution, and counterparty risk - The company may not have sufficient cash flow to make scheduled payments on its debt, including the **$287.5 million** in convertible notes, or to repurchase the notes if required[215](index=215&type=chunk) - Conversion of the notes into common stock could dilute the ownership interests of existing stockholders[219](index=219&type=chunk) - The company is subject to counterparty risk with the financial institutions involved in the capped call transactions, which are intended to reduce dilution from the notes[224](index=224&type=chunk) - Accounting for the convertible notes (under ASC 470-20) requires separating the debt and equity components, resulting in non-cash interest expense that will reduce reported net income or increase net loss[225](index=225&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Securities%20and%20Use%20of%20Proceeds) There have been no material changes in the planned use of proceeds from the company's IPO - There have been no material changes in the planned use of proceeds from the company's IPO[232](index=232&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) Provides an index of exhibits filed with the Quarterly Report on Form 10-Q, including convertible notes indenture and CEO/CFO certifications - The Exhibit Index lists documents filed with the report, including the Indenture for the 1.25% Convertible Senior Notes due 2025 and CEO/CFO certifications[237](index=237&type=chunk)