PagerDuty(US:PD)2024-09-03 23:07Revenue and Customer Metrics - PagerDuty's revenue for the three months ended July 31, 2024, was $115,935 thousand, representing a 7.7% increase from $107,616 thousand in the same period of 2023[142]. - The number of customers as of July 31, 2024, was 15,044, with 820 customers having greater than $100.0 thousand in annual recurring revenue (ARR), compared to 15,146 customers and 773 customers with greater than $100.0 thousand in ARR as of July 31, 2023[135]. - Revenue for the six months ended July 31, 2024, increased by $16.245 million, or 7.7%, to $227.107 million compared to $210.862 million for the same period in 2023[163]. Profitability and Loss - Gross profit for the three months ended July 31, 2024, was $95,855 thousand, resulting in a gross margin of 82.7%, compared to a gross profit of $87,783 thousand and a gross margin of 81.6% in 2023[139]. - The net loss attributable to PagerDuty, Inc. for the three months ended July 31, 2024, was $10,912 thousand, compared to a net loss of $22,053 thousand in the same period of 2023[139]. - Net loss attributable to PagerDuty, Inc. for the six months ended July 31, 2024, was $28.051 million, compared to a net loss of $34.271 million for the same period in 2023[161]. Operating Expenses - Total operating expenses for the three months ended July 31, 2024, were $111,882 thousand, a decrease from $113,956 thousand in the same period of 2023[139]. - Operating expenses for the six months ended July 31, 2024, totaled $225.444 million, an increase of $10.378 million, or 4.8%, compared to $215.066 million for the same period in 2023[161]. - Research and development expenses for the three months ended July 31, 2024, were $35,088 thousand, down from $36,441 thousand in 2023, representing a decrease in percentage of revenue from 33.9% to 30.3%[139]. Research and Development - Research and development expenses for the six months ended July 31, 2024, increased to $72.611 million, representing 32.0% of revenue, compared to $69.949 million, or 33.2% of revenue, for the same period in 2023[161]. - The company expects research and development expenses to generally increase in dollar value as the business grows[147]. Sales and Marketing - Sales and marketing expenses increased to $50,966 thousand for the three months ended July 31, 2024, compared to $49,724 thousand in 2023, representing 44.0% of revenue[139]. - Sales and marketing expenses for the six months ended July 31, 2024, increased to $99.465 million, representing 43.8% of revenue, compared to $93.525 million, or 44.4% of revenue, for the same period in 2023[161]. Interest Income and Expense - Interest income for the three months ended July 31, 2024, was $7,516 thousand, an increase from $5,011 thousand in the same period of 2023[139]. - Interest expense for the three months ended July 31, 2024, increased by $967 thousand, or 69.3%, to $2.363 million compared to $1.396 million for the same period in 2023[153]. - Interest income increased by $5,282,000 or 57.3%, totaling $14,496,000 for the six months ended July 31, 2024, compared to $9,214,000 in the same period of 2023[170]. Cash Flow and Financial Position - The company achieved a net cash provided by operating activities of $64.4 million for the six months ended July 31, 2024, up from $32.9 million in the same period of 2023, representing a 96.5% increase[198]. - Free cash flow for the three months ended July 31, 2024, was $33.3 million, significantly higher than $8.7 million for the same period in 2023, marking an increase of 282.5%[190]. - As of July 31, 2024, PagerDuty had cash and cash equivalents totaling $599.3 million, which is expected to support working capital and capital expenditure requirements for at least the next 12 months[192]. Share Repurchase and Debt - The company repurchased a total of 1,313,248 shares under its 2024 Share Repurchase Program, with $72.0 million remaining available for future repurchases as of July 31, 2024[195]. - Total debt obligations as of July 31, 2024, amounted to $449.3 million, with $57.2 million classified as short-term[196]. Deferred Revenue - Deferred revenue as of July 31, 2024, stood at $217.9 million, with $214.5 million expected to be recognized as revenue in the next 12 months[194].