PagerDuty (PD) 2025 Conference Summary Company Overview - PagerDuty is described as the most resilient, secure, and scalable digital operations platform for large enterprises and innovative technology companies, evolving from a developer-focused on-call automation tool to a comprehensive incident management platform [2][3] Core Industry Insights - The company emphasizes the growing importance of managing AI operations, highlighting its role in helping both native AI companies and large enterprises ensure the quality, reliability, and security of their AI investments [3] - PagerDuty's platform integrates over 700 ecosystem integrations and utilizes a first-class API to automate the identification and resolution of technology issues, which is crucial as businesses increasingly rely on modern technology stacks [2][3] Financial Performance - Revenue grew by 8%, reaching the top of guidance, marking the best quarter in eight quarters for new customer acquisitions [10][11] - Non-GAAP operating margins were reported at 20%, exceeding guidance, with a clear path to GAAP profitability anticipated in the next fiscal year [19][53] - Free cash flow margins were reported at 24% in Q1, indicating healthy cash flow generation [19] Customer Dynamics - The company faced challenges with enterprise retention, experiencing unexpected downgrades that affected dollar-based net retention, attributed to execution issues rather than systemic problems [11][12] - A significant transition in the enterprise sales team is underway, with a focus on hiring reps with enterprise sales experience and relationships in the CIO and CTO community [12][13] - The commercial segment showed elevated churn, particularly among startups that were overvalued and unable to sustain growth, while interest from well-funded generative AI companies is increasing [44][46] Strategic Initiatives - PagerDuty is evolving its pricing model from a seat-based structure to a consumption-based model, aligning pricing with the value delivered to customers [15][16] - The company is focusing on improving customer engagement and understanding the value realization of its products to reduce churn and enhance retention [35][36] - A share repurchase program of $150 million was announced, reflecting a commitment to returning capital to shareholders while pursuing long-term profitable growth [50][51] Market Environment - The macroeconomic environment remains uncertain, impacting customer behavior and negotiations, with expectations of continued volatility due to geopolitical factors and economic conditions [24][25] - Despite external uncertainties, there is a transformative opportunity in technology, particularly with the adoption of AI, which is driving internal efficiency gains for PagerDuty and its customers [31][32] Leadership and Organizational Changes - The search for a new Chief Revenue Officer (CRO) is ongoing, with a focus on finding a candidate with global enterprise sales experience and a competitive mindset [58][59] - The company is undergoing cultural and operational changes to enhance engagement and performance standards across its sales organization [60][61] Conclusion - PagerDuty is positioned to capitalize on the growing demand for automated incident management solutions, particularly in the context of AI operations, while navigating challenges in customer retention and market volatility. The strategic focus on evolving its sales approach, pricing model, and customer engagement is expected to drive future growth and profitability.

I gave a hold rating to PagerDuty (NYSE: PD ) in March as I was concerned about the growth outlook that was weighed down by slowing growth, go-to-market [GTM] issues, and macro headwinds. Although PD's 1Q26 results showed encouraging signs that PD's long-term I'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term gr ...

Group 1 - The fiscal first quarter results from PagerDuty (NYSE: PD) indicate that the company has been underperforming in the market this year [1] - PagerDuty is a digital operations management platform that is making progress in its business operations despite recent disappointments [1] Group 2 - The article emphasizes the importance of conducting due diligence before making any investment decisions related to the companies mentioned [3] - Investors are encouraged to seek advice from financial advisers or brokers prior to making investment choices [3]

Company Overview - PagerDuty, Inc. (NYSE: PD) is an incident-response SaaS company focused on preventing digital system failures, positioning itself in the automation and IT firefighting sector [1] Business Model - The company's platform integrates with cloud services and third-party applications, enhancing its utility in managing IT incidents [1]

Financial Performance - PagerDuty reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and up from $0.17 per share a year ago, representing an earnings surprise of 26.32% [1] - The company posted revenues of $119.81 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.73% and increasing from $111.17 million year-over-year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $124.07 million, and for the current fiscal year, it is $0.93 on revenues of $502.73 million [7] - The estimate revisions trend for PagerDuty is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Software industry, to which PagerDuty belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $120 million, representing an 8% year-over-year growth, at the top of the guidance range [4][20] - Non-GAAP operating margin reached 20%, exceeding the target by 500 basis points [4] - Annual recurring revenue (ARR) increased to $496 million, reflecting a 7% growth year-over-year [5][20] - Dollar-based net retention was 104%, negatively impacted by higher customer downgrades in the enterprise segment [20] - Gross margin for Q1 was 86%, at the high end of the target range of 84% to 86% [22] - Cash from operations was $31 million, or 26% of revenue, with free cash flow at $29 million, or 24% of revenue [22] Business Line Data and Key Metrics Changes - Significant improvement in net new paid customers, with a total of 15,247 paid customers, adding 127 net new customers, the strongest quarterly acquisition in eight quarters [21] - The commercial segment saw enhancements through a new digital acquisition strategy, leading to improved customer acquisition [5][21] - The enterprise segment is transitioning to a more strategic relationship model, focusing on deeper customer engagement and AI integration [6][8] Market Data and Key Metrics Changes - International revenue increased by 11% year-over-year, contributing 28% of total revenue [20] - The company is actively pursuing FedRAMP moderate authorization to expand its public sector presence, already serving over 700 entities [10] Company Strategy and Development Direction - The company is focused on three key priorities: demonstrating product-market fit for AI offerings, enhancing enterprise engagement to drive retention and expansion, and leveraging automation and AI within operations [17] - A strategic partnership with AWS was strengthened, expanding integration capabilities [9] - The company is evolving its pricing strategy to reduce friction and increase flexibility for customers [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged execution challenges in the enterprise segment but expressed confidence in the transformation efforts and the potential for stronger execution in the second half of the year [38][40] - The macro environment remains uncertain, impacting customer decision-making, but the company is committed to helping customers realize value and efficiencies [62] - The company expects dollar-based net retention to remain between 103% and 105% throughout fiscal 2026 [20] Other Important Information - The company achieved a 90% reduction in scope one and two carbon emissions against the FY23 baseline [16] - A new Chief Customer Officer has been appointed to enhance post-sale engagement and retention strategies [8][63] Q&A Session Summary Question: What is the impact of enterprise pressure on the business? - Management indicated that execution challenges were primarily responsible for the pressure, with a focus on improving customer engagement and sales execution [36][38] Question: How does the full-year guidance reflect the current environment? - The guidance was described as prudent, taking into account organizational transitions and execution challenges faced in Q1 [41][42] Question: What adoption trends are seen in new modules like PagerDuty Advanced? - Early adoption of generative AI solutions is promising, with customers eager to experiment and integrate these offerings into their operations [46][50] Question: Can you elaborate on the enterprise churn and downgrades? - Elevated churn was noted in the SMB segment, while downgrades in the enterprise segment were attributed to mergers and macroeconomic caution [60][62] Question: What are the expectations for net retention rate moving forward? - The company expects net retention to be in the range of 103% to 105%, with opportunities for expansion among existing customers [66][68] Question: How do billings trends reflect underlying business strength? - Trailing twelve-month billings align closely with ARR, providing a clearer picture of business health compared to quarterly fluctuations [71] Question: What is the visibility from large customers regarding multiproduct deals? - Demand for multiproduct platforms remains strong, with a focus on executing transformative deals to capture this demand [107][108]

Investor Presentation Q1 2026 Period ended April 30, 2025 Safe Harbor This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation, are forward-looking statements, including but not limited to: statements regarding the future financial and operational performance and outlook, and strategies, objectives, opportunity, expectations and market positioning of PagerDuty, Inc. ("PagerDuty" or the "Company"). In some cases, you can ide ...

Revenue Growth - First quarter revenue increased 8% year over year to $120 million[1] - Annual Recurring Revenue (ARR) grew 7% year over year to $496 million[1] - For the second quarter of fiscal 2026, PagerDuty expects total revenue of $122.5 million to $124.5 million, representing a growth rate of 6% to 7% year over year[13] - Revenue for the same period was $119,805 thousand, compared to $111,172 thousand in 2024, reflecting a growth of 7.3%[46] Customer Metrics - Customers with ARR over $100 thousand grew 5% to 848 as of April 30, 2025[8] - Dollar-based net retention rate was 104% as of April 30, 2025, compared to 106% a year earlier[8] - Total paid customers increased to 15,247 as of April 30, 2025, up from 15,120 a year earlier[8] Financial Performance - Non-GAAP operating income was $24 million, with a non-GAAP operating margin of 20.3%[5] - Non-GAAP operating income increased to $24,359 thousand in 2025 from $15,329 thousand in 2024, marking a significant rise of 59.5%[48] - Non-GAAP operating margin improved to 20.3% in 2025, up from 13.8% in 2024[48] - Non-GAAP net income attributable to common stockholders was $22,679 thousand in 2025, compared to $16,005 thousand in 2024, representing an increase of 41.6%[48] - The company reported a non-GAAP net income per share, basic, of $0.25 in 2025, up from $0.17 in 2024[48] Cash Flow and Assets - Net cash provided by operating activities was $30,670 thousand for the three months ended April 30, 2025, compared to $28,647 thousand for the same period in 2024, indicating a year-over-year increase of 7.07%[24] - Free cash flow for the period was positive, indicating the company's ability to generate cash in excess of capital investments, enhancing liquidity[42] - Free cash flow for the three months ended April 30, 2025, was $28,986 thousand, compared to $27,098 thousand in 2024, indicating a growth of 7.0%[50] - Total current assets increased to $713,291 thousand as of April 30, 2025, compared to $711,720 thousand on January 31, 2025, reflecting a growth of 0.22%[22] Liabilities and Equity - Total liabilities decreased to $763,806 thousand as of April 30, 2025, down from $779,221 thousand on January 31, 2025, representing a reduction of 1.84%[22] - The company reported a total stockholders' equity of $145,657 thousand as of April 30, 2025, up from $129,828 thousand on January 31, 2025, marking an increase of 12.19%[22] Deferred Revenue and Performance Obligations - Remaining performance obligations were $430 million, with approximately $302 million expected to be recognized as revenue over the next 12 months[8] - The company’s deferred revenue, current, was $237,076 thousand as of April 30, 2025, down from $243,269 thousand on January 31, 2025, a decrease of 2.54%[22] Stock-Based Compensation and Expenses - Stock-based compensation for the three months ended April 30, 2025, was $25,753 thousand, compared to $32,940 thousand in the same period of 2024, reflecting a decrease of 21.66%[24] - The company’s non-GAAP research and development expenses decreased to $22,303 thousand in 2025 from $25,637 thousand in 2024, a reduction of 13.5%[46] Compliance and Authorization - PagerDuty achieved FedRAMP Low Authorization, indicating compliance with federal security requirements[8]

Core Viewpoint - Five9 has experienced a significant decline in share price, losing 36.1% over the past six months, underperforming both the broader technology sector and its peers [1][2] Financial Performance - For Q2 2025, Five9 expects total revenues between $274.5 million and $275.5 million, with a consensus estimate of $275.07 million, indicating a year-over-year growth of 9.11% [8] - Non-GAAP earnings for Q2 2025 are projected to be between 64 and 66 cents per share, with a consensus of 65 cents, reflecting a 25% increase from the previous year [8] - For the full year 2025, Five9 anticipates revenues of $1.140 billion to $1.144 billion, with a consensus estimate of $1.14 billion, implying a year-over-year rise of 9.57% [9] - Non-GAAP earnings for 2025 are expected to be between $2.74 and $2.78 per share, with a consensus of $2.76, indicating an 11.74% year-over-year increase [9] - Five9 has consistently beaten earnings estimates in the past four quarters, with an average earnings surprise of 19.26% [9] Business Strategy and Growth Drivers - Five9's decline in share price is attributed to prolonged enterprise sales cycles and macroeconomic uncertainty affecting customer spending [2] - Despite these challenges, Five9's first-quarter results indicate resilience, driven by growing demand for its AI-powered solutions, particularly the Genius AI suite [3] - The company is focusing on recurring subscription revenues, ongoing platform innovation, and strategic partnerships to capture future enterprise demand [3][10] - Recent product launches, such as Five9 Fusion for Salesforce, enhance agent productivity and customer engagement through seamless integration [5][6] - Strategic partnerships with Salesforce and Microsoft are pivotal in advancing Five9's mission to deliver an AI-powered agent experience [6][7] Market Position and Outlook - Five9's strong AI-driven subscription revenues and expanding ecosystem through key partnerships highlight its growth momentum [10] - The company's guidance reflects management's confidence in its implementation and long-term value creation [10] - Five9 currently holds a Zacks Rank 2 (Buy), suggesting that investors should consider accumulating the stock [11]

Core Viewpoint - Snowflake reported strong financial results for the first quarter of fiscal 2026, with non-GAAP earnings and revenues exceeding expectations, indicating robust growth and customer retention despite a slight decline in net revenue retention rate [1][3][4]. Financial Performance - Non-GAAP earnings were 24 cents per share, beating the Zacks Consensus Estimate by 9.09%, compared to 14 cents per share in the same quarter last year [1]. - Revenues reached $1.04 billion, surpassing the consensus mark by 3.74% and showing a year-over-year increase of 25.7% [1]. - Product revenues accounted for 95.7% of total revenues, amounting to $996.8 million, which is a 26.2% increase year over year [3]. - Professional Services and other revenues contributed 4.3% to total revenues, totaling $45.3 million, up 15.7% year over year [3]. Customer Metrics - The number of customers grew by 18.8% year over year, reaching 11,578 [4]. - There are 606 customers with trailing 12-month product revenues exceeding $1 million, reflecting a 27% increase year over year [4]. - Snowflake added 451 net new customers in the reported quarter, representing a 19% increase year over year [4]. - The net revenue retention rate for existing customers was 124%, down from 126% in the previous quarter [3]. Operating Details - Non-GAAP gross margin contracted by 90 basis points year over year to 72.4% [6]. - Operating income was $91.7 million, compared to $36.2 million in the year-ago quarter [7]. - Total operating expenses as a percentage of revenues decreased to 63.4% from 69.1% reported in the previous year [7]. Balance Sheet & Cash Flow - As of April 30, 2025, Snowflake had cash, cash equivalents, and short-term investments of $3.91 billion, down from $4.63 billion as of January 31, 2025 [9]. - Remaining performance obligations were $6.7 billion, up 34% year over year, with nearly 50% expected to be recognized as revenue over the next 12 months [9]. - Adjusted free cash flow was $2.06 billion in the reported quarter, down from $4.23 billion in the previous quarter [9]. Guidance - For the second quarter of fiscal 2026, Snowflake expects product revenues in the range of $1.03-$1.04 billion, indicating year-over-year growth of 25% [10]. - The operating margin is projected to be 8% for the fiscal second quarter [10].