PagerDuty stock is down about 2.5% year to date and off about 30% from its February peak.
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PagerDuty posted better-than-expected results for its fiscal first quarter, but the stock was losing ground in late trading Thursday.
The provider of digital operations management software posted revenue for the quarter ended April 30 of $63.6 million, up 28% from a year ago and ahead of both the company’s guidance range of $61 million to $63 million and the Street consensus forecast at $62 million. PagerDuty (ticker: PD) had a non-GAAP loss in the quarter of 8 cents a share, slightly better than the guidance range of a loss of 9 cents to 10 cents a share and the Street forecast for a loss of 9 cents. Under generally accepted accounting principles, or GAAP, the company lost $22.6 million, or 27 cents a share.
“PagerDuty’s business is benefiting from recovery, as both the macro trends and market landscape continue to move in our favor,” PagerDuty CEO Jennifer Tejada said. As communities, industries, and businesses move forward to a post-pandemic world, our platform is essential infrastructure for our customers.”
For the fiscal second quarter, the company projects revenue of between $64.5 million and $66.5 million, ahead of the previous Street forecast at $63.8 million. The company projects a non-GAAP loss of 15 cents to 16 cents a share, wider than the Street consensus loss forecast of 9 cents a share.
In an interview with Barron’s, Tejada noted that the wider loss for the quarter reflects the shift of the company’s annual users event to late June from September— as well as higher marketing costs for the coming launch of a television brand advertising campaign. The company’s PagerDuty Summit will be June 22-25, including a financial analysts meeting on June 24.
Tejada noted that the company had a strong beat-and-raise quarter, with particularly strong growth in larger customers—new customers in the quarter included DoorDash and Netflix, among others. She noted that the company now serves more than 60% of the Fortune 100 and over 40% of the Fortune 500, adding to both totals in the quarter.
For the January 2022 fiscal year, the company now sees revenue ranging from $267 million to $272 million, with a non-GAAP loss of between 36 cents and 42 cents a share. Previous guidance called for revenue of between $264 million and $270 million, with a loss of between 36 cents and 43 cents a share.
PagerDuty shares have fallen in recent months as investors have steered away from fast-growth cloud-based software providers. At the close of Thursday’s regular session, the stock was down about 2.5% year to date and off about 30% from its February peak. In late trading, PagerDuty was off another 3.1% to $30.30.
Write to Eric J. Savitz at [email protected]
