PagerDuty(PD) - 2026 Q3 - Quarterly Results

Revenue and Growth - Third quarter revenue increased 5% year over year to $125 million[1] - Annual Recurring Revenue (ARR) grew 3% year over year to $497 million[1] - Revenue for the three months ended October 31, 2025, was $124.545 million, representing a 4.5% increase from $118.946 million in the same period of 2024[20] - Total paid customers increased to 15,398, up from 15,050 year over year[8] - Customers with ARR over $100 thousand grew 5% to 867 as of October 31, 2025[8] - Remaining performance obligations were $415 million, with an expected revenue recognition of approximately $287 million over the next 12 months[8] - For the fourth quarter of fiscal 2026, total revenue is expected to be between $122 million and $124 million[13] Profitability - Operating income was $8 million, with a non-GAAP operating income of $36 million[1] - Net income per diluted share attributable to common stockholders was $1.69, with a non-GAAP net income per diluted share of $0.33[5] - Net income attributable to PagerDuty, Inc. common stockholders for the three months ended October 31, 2025, was $159.555 million, compared to a net loss of $6.558 million in the same period of 2024[20] - Non-GAAP net income attributable to common stockholders for the three months ended October 31, 2025, was $31.217 million, compared to $23.721 million in the same period of 2024, a growth of 31.5%[49] - Non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders for the three months ended October 31, 2025, was $0.34, compared to $0.26 in the same period of 2024[49] Expenses and Liabilities - Operating expenses for the three months ended October 31, 2025, totaled $98.109 million, a decrease of 10.0% from $108.971 million in the prior year[20] - Research and development expenses for the three months ended October 31, 2025, were $29.418 million, down from $34.267 million in the prior year, a decrease of 14.0%[20] - Total liabilities decreased to $688.446 million as of October 31, 2025, from $779.221 million on January 31, 2025[22] Cash Flow and Assets - Cash and cash equivalents as of October 31, 2025, were $324.260 million, down from $346.460 million at the beginning of the year[22] - Net cash provided by operating activities for the three months ended October 31, 2025, was $24.803 million, compared to $22.073 million in the same period of 2024[24] - Free cash flow for the three months ended October 31, 2025, was $20.929 million, compared to $19.443 million in the same period of 2024, indicating an increase of 7.6%[52] - Free cash flow margin for the three months ended October 31, 2025, was 16.8%, compared to 16.3% in the same period of 2024[52] - Total assets increased to $1.027 billion as of October 31, 2025, compared to $927.266 million on January 31, 2025[22] Margins and Retention - Dollar-based net retention rate was 100% as of October 31, 2025, down from 107% a year earlier[8] - Non-GAAP gross margin for the three months ended October 31, 2025, was 86.7%, up from 86.0% in the same period of 2024[47] - Non-GAAP operating margin for the three months ended October 31, 2025, was 28.5%, up from 21.0% in the same period of 2024[49] - Operating cash flow margin for the three months ended October 31, 2025, was 19.9%, compared to 18.6% in the same period of 2024[52] Future Projections and Tax - Non-GAAP net income per diluted share for the full fiscal year 2026 is projected to be between $1.11 and $1.12[13] - PagerDuty's projected non-GAAP tax rate for fiscal 2026 is 22%, aimed at providing consistency across reporting periods[37] Non-GAAP Measures - PagerDuty emphasizes the importance of reviewing GAAP financial measures alongside non-GAAP measures for a comprehensive understanding of financial performance[44] - Non-GAAP operating income for the three months ended October 31, 2025, was $35.546 million, up from $24.991 million in the same period of 2024, reflecting a growth of 42.3%[49] - Non-GAAP gross profit for the three months ended October 31, 2025, was $107,993,000, compared to $102,339,000 for the same period in 2024, representing a 5.2% increase[47] - Non-GAAP operating expenses for the three months ended October 31, 2025, were $19,348,000 in research and development, down from $22,291,000 in 2024, a decrease of 8.7%[47] - Non-GAAP net income for the nine months ended October 31, 2025, was not explicitly stated but reflects adjustments for various non-operational items[41]