PagerDuty, Inc. has recently released its 10-K report, detailing its financial performance and operations for the year ended January 31, 2024. The company, headquartered in San Francisco, California, operates a digital operations management platform that collects data and digital signals from various software-enabled systems and devices. PagerDuty leverages machine learning to correlate, process, and predict opportunities and issues, offering services such as incident management, AIOps, process automation, and customer service operations to industries including software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services.
In the 10-K report, PagerDuty highlighted its financial performance, reporting a total of over 15,000 paying customers globally as of January 31, 2024. Notably, 804 customers contributed annual recurring revenue (ARR) in excess of $100,000, and 58 customers contributed ARR in excess of $1,000,000. The company's 10 largest customers represented approximately 9% of its revenue for the fiscal year ended January 31, 2024, and no single customer represented more than 10% of its revenue during the same period.
PagerDuty's business model focuses on attracting new customers and expanding within its existing customer base. It reported a dollar-based net retention rate of 107% for the fiscal year ended January 31, 2024, indicating its ability to retain and expand the ARR from existing customers. The company's efficient operating model led to a gross margin of over 81% for the same fiscal year, providing flexibility for further investments in its platform and go-to-market function while maintaining strong operating leverage on its path to profitability.
The 10-K report also emphasized PagerDuty's continued investment in growth, including expanding its sales team to target mid-market and enterprise customers, as well as making focused investments in marketing to drive brand awareness and enhance the effectiveness of its customer acquisition model. The company's key business metrics, including the number of customers and dollar-based net retention rate, were also outlined in the report to evaluate its business performance and make strategic decisions.
If you want to know more, read the company's complete 10-K report here.
