PagerDuty(PD) - 2026 Q1 - Quarterly Report

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$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$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$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$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$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$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]