PagerDuty Reports 7.7% Revenue Increase

By Tamara Parker • Wednesday, September 04 15:24 • Permanent Link

PagerDuty, Inc. has recently released its 10-Q report, providing an in-depth look into its financial condition and results of operations. The company operates a digital operations management platform that collects data and digital signals from various software-enabled systems and devices, leveraging machine learning to correlate, process, and predict opportunities and issues. PagerDuty's platform includes incident management, AIOps, process automation, and customer service operations, serving a wide range of industries including software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services. The company was founded in 2009 and is headquartered in San Francisco, California.

In the 10-Q report, PagerDuty discussed its financial performance for the three months ended July 31, 2024, compared to the same period in 2023. The company reported revenue of $115,935, a 7.7% increase from the previous year. The cost of revenue increased by 1.2%, reaching $20,080, resulting in a gross margin of 82.7%, up from 81.6% in the same period in 2023. Operating expenses totaled $111,882, a decrease of 1.8% from the previous year, with research and development expenses decreasing by 3.7%.

PagerDuty also highlighted key business metrics, including the number of customers and dollar-based net retention rate. As of July 31, 2024, the company had 15,044 customers, with 820 customers having greater than $100.0 thousand in annual recurring revenue (ARR). The dollar-based net retention rate for all customers was 106% for the last 12 months ended July 31, 2024, compared to 114% for the same period in 2023.

The company's revenue primarily comes from cloud-hosted subscription fees and term-license software subscription fees. PagerDuty's revenue growth was attributed to an increase in the number of users and upsell of additional products and services to existing customers. The 10-Q report also detailed the breakdown of revenue, cost of revenue, and operating expenses, providing a comprehensive overview of PagerDuty's financial performance for the period.

Following these announcements, the company's shares moved -1.3%, and are now trading at a price of $18.04. For more information, read the company's full 10-Q submission here.

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