PagerDuty FY Conference Summary Company Overview - **Company**: PagerDuty (NYSE: PD) - **Industry**: Digital Operations Management - **Focus**: AI-enabled enterprise solutions for managing digital operations and infrastructure [1][2] Core Points and Arguments - **Digital Operations Management**: PagerDuty helps companies manage complex digital infrastructures to ensure optimal customer experiences [2][3] - **Incident Management**: The company emphasizes the importance of rapid response to incidents and proactive issue management [3][4] - **Product Offerings**: PagerDuty's platform includes incident management, automation, AI Ops, and customer service operations, with a focus on integrating AI and automation [6][9] - **Operations Cloud**: The platform is built on four pillars: incident management, AI Ops, automation, and customer service operations, allowing for a comprehensive management of operations [6][10] - **Integration Capabilities**: PagerDuty integrates with over 700 different systems, including monitoring, observability, security, and communication tools [5][12] Financial Performance - **Q3 Results**: Revenue was $125 million, representing a 5% year-over-year growth, with a non-GAAP operating margin of 29% [18] - **Long-term Financial Goals**: Targeting gross margins of 84%-86% and aiming for GAAP profitability in the upcoming year [19][58] Market Opportunity - **Total Addressable Market**: There are 87 million potential users for PagerDuty, with over 1 million currently using the platform [13] - **Cost of Incidents**: Customer-facing incidents can cost companies up to $800,000 per minute, highlighting the value of PagerDuty's services in protecting revenue and reputation [14] Customer Engagement and Adoption - **Customer Base**: Over 34,000 companies use PagerDuty, including more than half of the Fortune 500 [16][21] - **Flex Pricing Model**: Introduced to provide customers with access to the full Operations Cloud, enhancing product discovery and flexibility [41][42] Product Innovation - **AI Agents**: Recent offerings include generative AI agents that assist in incident management and operational tasks, with positive initial feedback from customers [25][27] - **Adoption Curve**: The adoption of AI agents has been gradual, with a focus on building trust and transparency with customers [31][32] Strategic Outlook - **M&A Considerations**: PagerDuty is open to acquisitions that enhance its product offerings and expand its technology footprint [60] - **Balancing Growth and Profitability**: The company aims to drive top-line growth while maintaining a focus on profitability and operational efficiency [58] Additional Insights - **Customer-Centric Approach**: The company emphasizes collaboration with customers to ensure the reliability and effectiveness of its AI solutions [31] - **Continuous Improvement**: PagerDuty is committed to ongoing innovation, having delivered over 150 new capabilities in the past year [21]

Financial Performance - PagerDuty's Q3 FY26 ARR reached $497 million[10] - The company's revenue for Q3 FY26 was $125 million, representing a 5% year-over-year growth[10, 60] - PagerDuty achieved a Non-GAAP Operating Margin of 29% in Q3 FY26[10, 60] - Free Cash Flow Margin for Q3 FY26 stood at 17%[10] Customer Metrics - PagerDuty has a total of 15,398 paid customers[10, 60] - The number of customers with ARR greater than $100K is 867[10] - Dollar-Based Net Retention (DBNR) was 100%[10, 61] Product and Market - PagerDuty estimates a $50 billion market opportunity[50] - The company highlights that 88% of executives expect a major IT incident within the next year[19] - Forrester's Total Economic Impact study indicates a 249% ROI over three years for PagerDuty's Operations Cloud[53, 56]

Financial Performance - Q2 FY26 revenue reached $123 million[10], representing a 6% year-over-year growth[59] - The company's ARR is $499 million[10] - Non-GAAP operating margin was 25%[10] - Free cash flow margin was 24%[10] - Dollar-based net retention (DBNR) was 102%[10] Customer Base - PagerDuty has a total of 15,322 paid customers[10] - The company has 868 customers with ARR greater than $100K[10] Product and Market - PagerDuty operates in a $50 billion market opportunity[47] - The company estimates it has approximately 1% penetration worldwide within its target markets[48] - Incident downtime costs approximately $4,537 per minute, equating to $794,000 per incident[48] Operational Efficiency - A Forrester study indicates a 249% return on investment (ROI) over three years with PagerDuty Operations Cloud[50]

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 ...