PagerDuty Shares Slide 12% After Weak Revenue Outlook

Core Viewpoint - PagerDuty, Inc. reported fourth-quarter results that exceeded analyst expectations, but shares fell over 12% in premarket trading due to lower-than-expected fiscal 2027 revenue guidance [1][2] Financial Performance - The company posted adjusted earnings of $0.29 per share, surpassing the consensus estimate of $0.24 [1] - Revenue increased by 2.7% year over year to $124.8 million, exceeding the analyst forecast of $123.15 million [1] Future Guidance - For fiscal 2027, PagerDuty projected revenue between $488.5 million and $496.5 million, with a midpoint of $492.5 million, which is below the consensus estimate of $506.9 million [2] - The first quarter of fiscal 2027 is forecasted to generate revenue between $118.0 million and $120.0 million, with a midpoint of $119.0 million, also falling short of analyst expectations [2] Earnings Outlook - The company guided adjusted earnings per share of $0.23 to $0.25 for the first quarter and $1.23 to $1.28 for the full fiscal year, compared to the consensus estimate of $1.19 [3] - Adjusted operating income for the quarter was reported at $29.8 million, resulting in an operating margin of 23.9% [3] Recurring Revenue Metrics - Annual recurring revenue increased by 1% year over year to $498.7 million [3] - The dollar-based net retention rate declined to 98% from 106% a year earlier [3]