IT incident response platform PagerDuty (NYSE:PD) reported results in line with analysts' expectations in Q4 FY2024, with revenue up 10.1% year on year to $111.1 million. On the other hand, next quarter's revenue guidance of $111.5 million was less impressive, coming in 1.7% below analysts' estimates. It made a non-GAAP profit of $0.17 per share, improving from its loss of $0.25 per share in the same quarter last year.
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PagerDuty (PD) Q4 FY2024 Highlights:
- Revenue: $111.1 million vs analyst estimates of $110.4 million (small beat)
- EPS (non-GAAP): $0.17 vs analyst estimates of $0.15 (12.6% beat)
- Revenue Guidance for Q1 2025 is $111.5 million at the midpoint, below analyst estimates of $113.4 million
- Management's revenue guidance for the upcoming financial year 2025 is $474 million at the midpoint, missing analyst estimates by 1.4% and implying 10.1% growth (vs 16.4% in FY2024)
- Gross Margin (GAAP): 81.7%, in line with the same quarter last year
- Free Cash Flow of $19.61 million, up 28.8% from the previous quarter
- Customers: 15,039, down from 15,049 in the previous quarter
- Market Capitalization: $2.15 billion
Started by three former Amazon (NASDAQ:AMZN) engineers, PagerDuty (NYSE:PD) is a software-as-a-service platform that helps companies respond to IT incidents fast and make sure that any downtime is minimized.
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Sales GrowthAs you can see below, PagerDuty's revenue growth has been strong over the last three years, growing from $59.28 million in Q4 2021 to $111.1 million this quarter.
This quarter, PagerDuty's quarterly revenue was once again up 10.1% year on year. We can see that PagerDuty's revenue increased by $2.40 million quarter on quarter, which is a solid improvement from the $1.10 million increase in Q3 2024. Shareholders should applaud the acceleration of growth.
Next quarter's guidance suggests that PagerDuty is expecting revenue to grow 8% year on year to $111.5 million, slowing down from the 20.9% year-on-year increase it recorded in the same quarter last year. For the upcoming financial year, management expects revenue to be $474 million at the midpoint, growing 10.1% year on year compared to the 16.2% increase in FY2024.
Customer Growth PagerDuty reported 15,039 customers at the end of the quarter, a decrease of 10 from the previous quarter. That's better customer growth than last quarter and quite a bit above the typical growth we've seen in past quarters, demonstrating that the business has strong sales momentum. We've no doubt shareholders will take this as an indication that PagerDuty's go-to-market strategy is working very well.
Key Takeaways from PagerDuty's Q4 Results We were impressed by PagerDuty's strong growth in customers this quarter. On the other hand, its full-year revenue guidance was below expectations and and suggests a slowdown in demand. Overall, this was a mixed quarter for PagerDuty, with the guidance weighing on shares. The company is down 7.8% on the results and currently trades at $21.15 per share.
