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PagerDuty Shares Jump on Solid First Quarter Results, Positive Outlook

Published 05/30/2024, 04:28 PM
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SAN FRANCISCO - PagerDuty, Inc. (NYSE: NYSE:PD), a global leader in digital operations management, reported a robust first quarter for fiscal 2025, with an 8% year-over-year (YoY) increase in revenue to $111.2 million, surpassing the previous year's figure but slightly missing the analyst consensus of $111.73 million.

The company's adjusted earnings per share (EPS) for the quarter stood at $0.17, exceeding analyst expectations by $0.04.

The company's positive performance and future guidance have resonated well with investors, as reflected by a 3.7% uptick in its stock price. The market's upbeat response aligns with PagerDuty's announcement of solid results and an encouraging outlook for the coming quarters.

PagerDuty's GAAP operating loss was reported at $21.7 million, with a GAAP operating margin of -19.5%. However, the adjusted operating income was a more favorable $15.3 million, with an adjusted operating margin of 13.8%.

The company also announced a significant $100 million share repurchase program, signaling confidence in its financial health and commitment to shareholder value.

Jennifer Tejada, Chairperson and CEO of PagerDuty, highlighted the company's consistent performance, stating, "We continue to scale efficiently, delivering our seventh consecutive quarter of non-GAAP profitability. We are encouraged by the stability and momentum emerging from PagerDuty's enterprise focus and success."

Looking ahead to the second quarter of fiscal 2025, PagerDuty expects total revenue to be between $115.5 million and $117.5 million, representing a 7%-9% YoY growth, with the midpoint of the guidance range slightly below the analyst consensus of $116.2 million.

The projected adjusted EPS is $0.16-$0.17, aligning with the lower end of the consensus estimate of $0.16.

For the full fiscal year 2025, the company anticipates total revenue in the range of $471 million to $477 million, indicating a 9%-11% YoY growth. The midpoint of this guidance is just below the analyst consensus of $475.2 million.

The adjusted EPS forecast is set at $0.66-$0.71, with the midpoint slightly below the consensus of $0.67.

Chief Financial Officer Howard Wilson expressed optimism about the company's trajectory, saying, "This share repurchase program signals our desire to manage share dilution and reflects the confidence of the Board and management team in our strategy."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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