Financial Data and Key Metrics Changes - PagerDuty reported revenue of $125 million for Q3, representing a 5% year-over-year increase [3][20] - Non-GAAP operating margin was 29%, exceeding guidance and expanding 750 basis points year-over-year [3][22] - GAAP net income for Q3 was $160 million, including a one-time tax benefit of $154 million [20] - Annual recurring revenue (ARR) reached $497 million, reflecting a 3% year-over-year growth [3][20] - Gross margin was 87%, above the target range of 84%-86% [21][22] Business Line Data and Key Metrics Changes - New and expansion bookings were consistent with the first half of the year, but impacted by customers rightsizing seat licenses [3][5] - Customer retention efforts have stabilized, but seat license compression remains a significant challenge in large enterprises [5][6] - The number of customers spending over $100,000 annually increased by 5% year-over-year to 867 [21][12] - Total paid customers grew to 15,398, a 2% year-over-year increase [21] Market Data and Key Metrics Changes - International revenue increased by 7% year-over-year, contributing 29% of total revenue [20] - The company added 284 net new customers year-to-date, nearly four times the total in FY 2025 [10][11] - Total paid and free customers on the platform grew to over 34,000, an increase of approximately 13% compared to Q3 of last year [21] Company Strategy and Development Direction - The company is focused on three objectives: expanding operating and free cash flow margins, extending product advantage in AI operations, and scaling go-to-market transformation [3][4] - PagerDuty aims to transition from a single-year seat-based license model to a multi-year platform usage model [10] - The company is investing in operational efficiency and product innovation to maintain leadership in digital and AI operations [4][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in customer retention due to budget caution and organizational changes [30][34] - The company is confident in long-term growth prospects, citing strong demand for its platform and improvements in customer usage metrics [34][56] - Management expects continued pressure on dollar-based net retention but is implementing changes to improve customer engagement and retention [24][45] Other Important Information - Howard Wilson, CFO, announced plans to retire in the next financial year after nine years with the company [16][17] - The company repurchased 2.4 million shares under its $200 million repurchase plan, with $162 million remaining available [22] Q&A Session Summary Question: Trends in dollar-based net retention and customer spending - Management noted that while logo retention improved, larger downgrades were tied to significant reorganizations, making it difficult to anticipate changes [32][33] Question: Sales maturity indicators and productivity - Management emphasized the importance of customer feedback and engagement, focusing on proactive support and understanding customer needs [37][39] Question: Opportunities to offer usage-based pricing to existing accounts - Management confirmed that longer-term agreements allow for proactive engagement with customers regarding new pricing and services [42][43] Question: Guidance assumptions regarding dollar-based churn - Management indicated that guidance reflects current visibility around renewals, expecting some seat-based pressure to continue [45] Question: Impact of reorganizations on customer spending - Management acknowledged that while some customers are downsizing, they are also seeking to improve operational resilience, leading to potential growth opportunities [65][66] Question: Momentum with new logo acquisitions - Management reported good new logo acquisition across all segments, with promising growth in both digital-first and go-to-market environments [96][97]

Financial Data and Key Metrics Changes - PagerDuty reported Q3 revenue of $125 million, a 5% year-over-year increase [3][19] - Non-GAAP operating margin reached 29%, expanding 750 basis points from the previous year [3] - GAAP net income for Q3 was $160 million, including a one-time tax benefit of $154 million [19] - Annual recurring revenue (ARR) grew 3% year-over-year to $497 million [3][19] - Gross margin was 87%, exceeding the target range of 84%-86% [20][21] - Cash from operations was $25 million, representing 20% of revenue [21] Business Line Data and Key Metrics Changes - New and expansion bookings were consistent with the first half of the year, but impacted by customers rightsizing seat licenses [3][5] - Customer retention and growth remain a top priority, with efforts to increase average transaction size through new usage-based products [5][6] - The number of customers spending over $100,000 annually increased by 5% year-over-year to 867 [20] Market Data and Key Metrics Changes - International revenue increased by 7% year-over-year, contributing 29% of total revenue [19] - Total paid customers grew to 15,398, a 2% year-over-year increase [20] - Paid and free customers on the platform grew to over 34,000, an increase of approximately 13% compared to the previous year [20] Company Strategy and Development Direction - The company is focused on three objectives: expanding operating and free cash flow margins, extending product advantage in AI operations, and scaling go-to-market transformation [3][4] - PagerDuty aims to transition from a single-year seat-based license model to a multi-year platform usage model [11] - The company is investing in operational efficiency and product innovation to maintain leadership in digital and AI operations [4][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges with seat license compression due to budget caution among large enterprises [5][20] - There is confidence in long-term growth despite current pressures, with a focus on proactive customer engagement and flexible pricing [29][40] - The company expects to be GAAP profitable for the full fiscal year [19][24] Other Important Information - Howard Wilson, CFO, announced plans to retire in the next financial year after nine years with the company [17][18] - The company has made significant investments in AI and operational resilience, positioning itself as a leader in the market [10][14] Q&A Session Summary Question: Trends in dollar-based net retention (DBNR) and gross churn - Management noted that while DBNR was 100%, it was negatively impacted by lower gross retention and expects pressure to continue in Q4 [20][28] Question: Evaluation of current customer spending and organizational changes - Management indicated that improvements in logo retention were observed, but larger downgrades were tied to significant reorganizations [28][30] Question: Proactive measures for customer renewals - The company is taking a multi-quarter view on renewal planning and offering flexible pricing to mitigate risks [29][39] Question: Impact of AI on customer investments and headcount - Management observed a focus on improving operating margins and reducing costs, with automation becoming more integrated into the platform [44] Question: Guidance for Q4 and renewal expectations - The guidance for Q4 reflects visibility around renewals, with expectations for stabilization in customer downgrades [48][49] Question: Performance of the agentic suite and competitive differentiation - Positive responses to the agentic suite were noted, with expectations for increased usage and adoption as customers engage with the new offerings [52][55]

Investor Presentation Q3 FY 2026 Period ended October 31, 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 ca ...

Core Insights - PagerDuty, Inc. will report its financial results for the third quarter of fiscal year 2026 on November 25, 2025, after market close [1] - The company is a leader in digital operations management, providing an AI-powered platform that enhances business resilience and operational efficiency [2][3] Financial Reporting - The financial results will be released after market close on November 25, 2025, for the quarter ending October 31, 2025 [1] - A live Zoom video call for analysts and investors will take place at 2:00 p.m. Pacific Time on the same day [1] Company Overview - PagerDuty is recognized for its Operations Cloud, which automates the incident management lifecycle, enabling real-time issue detection and resolution [3] - The platform is essential for delivering uninterrupted digital experiences, trusted by nearly half of the Fortune 500 and two-thirds of the Fortune 100 [2] Recent Developments - The company has appointed Callum Eade as Vice President of Asia Pacific Sales to drive growth in that region [5] - PagerDuty launched the industry's first end-to-end AI agent suite, which has reportedly reduced incident response times by up to 50% [6] - A recent survey indicated that 81% of executives trust AI agents to act on behalf of their companies during crises, highlighting the increasing reliance on AI in business operations [7]

Core Insights - PagerDuty, Inc. has appointed Callum Eade as vice president of Asia Pacific Sales to drive growth in the region [1] - The company aims to deliver its Operations Cloud and modern incident management solutions to address digital operations challenges faced by customers in Asia-Pacific [1] Company Developments - The appointment of Callum Eade is seen as a strategic move to enhance PagerDuty's presence and operational capabilities in the Asia-Pacific market [1] - The focus will be on leveraging PagerDuty's technology to solve significant challenges in digital operations for regional customers [1]

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 ...

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]