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 ...

Financial Data and Key Metrics Changes - PagerDuty achieved a 9% year-over-year growth in revenue, reaching $121 million in Q4 [26] - Annual recurring revenue (ARR) grew by 9% year-over-year, totaling $494 million [27] - Non-GAAP operating margin expanded by nearly 500 basis points to 18% [4] - Free cash flow margin increased from 15% to 23% [4] - Gross margin for Q4 was 86%, at the high end of the target range [29] Business Line Data and Key Metrics Changes - ARR from customers spending over $100,000 grew 12% year-over-year, now representing 71% of total ARR [6][27] - Multi-product customers now drive 65% of total ARR, up from 62% the previous year [5] - Contribution from incident management was 70% of total ARR, down from 73% in FY '24 [28] Market Data and Key Metrics Changes - International revenue increased by 10% annually, contributing 28% of total revenue [26] - The total addressable market is estimated at $50 billion as organizations modernize their digital operations [7] Company Strategy and Development Direction - The company is focused on optimizing field organization efficiency and executing an enterprise sales transformation [6] - New platform monetization strategies are being implemented, including AI capabilities and frictionless packaging [6] - The company aims to build momentum in the Commercial segment through targeted digital acquisition and retention programs [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term moderation in growth due to a transition to an enterprise-focused sales model and macroeconomic volatility [7][8] - There is confidence in the ability to build momentum into the second half of the fiscal year, supported by strategic wins and customer relationships [5][8] - The company is committed to operational discipline and has taken a pragmatic approach to its full-year outlook [11] Other Important Information - A new $150 million share repurchase program was announced, signaling confidence in the company's FY '26 plan [26] - The leadership team has been strengthened with new appointments to drive AI and automation initiatives [21][22] Q&A Session Summary Question: Update on market conditions and business impact - Management noted that it is too early to determine the impact of the current tariff environment on customer spending, emphasizing a focus on platforms with high ROI and efficiency [36][37] Question: Sales leaders' ramping productivity and hiring needs - New sales leaders are ramping faster than previous cohorts, and the company is focused on increasing effectiveness and productivity in sales [39][40] Question: Competitive landscape and opportunities - Despite increasing competition, the company has improved retention levels and believes it has a differentiated platform for large enterprises [43][44] Question: Guidance and assumptions for future growth - The guidance reflects an expectation of accelerating growth in the second half of the year, supported by improved pipeline management and a focus on enterprise customers [46][47] Question: Evolution of product offerings and customer agreements - The shift towards multiyear agreements has been intentional, aligning with customer needs for certainty and long-term relationships [56][57][60]

Financial Data and Key Metrics Changes - PagerDuty achieved a 9% year-over-year growth in revenue, reaching $121 million in Q4 [4][26] - Annual recurring revenue (ARR) grew by 9% year-over-year, totaling $494 million [5][27] - Non-GAAP operating margin expanded by nearly 500 basis points to 18% [4] - Free cash flow margin increased from 15% to 23% [4] - Gross margin for Q4 was 86%, at the high end of the target range [29] Business Line Data and Key Metrics Changes - ARR from customers spending over $100,000 grew 12% year-over-year, now representing 71% of total ARR [6][27] - Multi-product customers now drive 65% of total ARR, up from 62% last year [5][28] - Contribution from incident management was 70% of total ARR, down from 73% in FY '24 [28] Market Data and Key Metrics Changes - International revenue increased by 10% annually, contributing 28% of total revenue [26] - The total addressable market is estimated at $50 billion as organizations modernize their digital operations [7] Company Strategy and Development Direction - The company is focused on optimizing field organization efficiency and executing an enterprise sales transformation [6][10] - New platform monetization strategies are being implemented, including AI capabilities and frictionless packaging [6][11] - The company aims to build momentum in the Commercial segment through targeted digital acquisition and retention programs [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term moderation in growth due to a transition to an enterprise-focused sales model and macroeconomic volatility [7][8] - There is confidence in the ability to build momentum into the second half of the fiscal year, supported by strategic wins and customer engagement [8][23] - The company is committed to operational discipline and has taken a pragmatic approach to its full-year outlook [11][33] Other Important Information - A new $150 million share repurchase program was announced, signaling confidence in the company's financial health [26] - The leadership team has been strengthened with new appointments to drive AI and automation initiatives [21][22] Q&A Session Summary Question: Update on market conditions and business impact - Management noted that it's too early to determine the impact of the current tariff environment on customer spending, emphasizing a focus on platforms with high ROI and efficiency [36][37] Question: Sales leaders' ramping productivity and hiring needs - Management indicated that new sales leaders are ramping faster than previous cohorts, and there is a focus on increasing effectiveness and productivity [39][40] Question: Competitive landscape and opportunities - Management highlighted that despite increasing competition, retention levels have improved, and the company has a differentiated platform for large enterprises [43][44] Question: Guidance and assumptions for future growth - Management expects accelerating growth in the second half of the year, supported by improved sales capacity and strong performance from larger customers [46][47] Question: Evolution of product offerings and customer engagement - Management confirmed that AIOps and automation are leading growth outside of incident management, with a focus on long-term relationships and multiyear agreements [52][56]