PagerDuty, Inc. has recently released its 10-Q report, offering a detailed insight into the company's financial performance and operations. PagerDuty, Inc. operates a digital operations management platform that collects data and digital signals from various software-enabled systems and devices. The platform utilizes machine learning to correlate, process, and predict opportunities and incidents, serving industries such as software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services. The company generates revenue primarily from cloud-hosted software subscription fees and term-license software subscription fees. It follows a land-and-expand business model and focuses on serving enterprise customers. The company's fiscal quarters end on April 30, July 31, October 31, and January 31.
In the 10-Q report, PagerDuty, Inc. provided an overview of its business model, emphasizing its role as a global leader in digital operations management. The company's operations cloud combines artificial intelligence operations, automation, customer service operations, and incident management with a generative AI assistant. PagerDuty, Inc. has expanded its capabilities from a single product focused on on-call management for developers to a multi-product platform that reaches executive stakeholder roles across an organization. The company has over 700 direct integrations to enable customers to gather and correlate digital signals from virtually any software-enabled system or device.
PagerDuty, Inc. also highlighted key business metrics, including Annual Recurring Revenue (ARR), the number of customers, and the dollar-based net retention rate. As of April 30, 2025, the company reported ARR of $496.0 million, an increase from $463.4 million in 2024. The number of customers using the platform stood at 15,247, with 848 customers having greater than $100.0 thousand in ARR. The dollar-based net retention rate was reported at 104% for the last 12 months ended April 30, 2025, reflecting the company's ability to retain and expand the ARR from its existing paid customers.
In terms of financial performance, PagerDuty, Inc. reported revenue of $119.8 million for the three months ended April 30, 2025, representing a 7.8% increase from the same period in 2024. The company's gross margin stood at 84.0%, reflecting a decrease in cost of revenue primarily due to various factors, including a decrease in amortization of acquired intangible assets and outside services spend for the customer service team.
The company's operating expenses for the same period totaled $110.9 million, with research and development expenses decreasing by 9.3%, sales and marketing expenses increasing by 3.2%, and general and administrative expenses decreasing by 2.5%. The report also detailed the company's net loss, provision for income taxes, and net loss attributable to PagerDuty, Inc.
As a result of these announcements, the company's shares have moved -11.43% on the market, and are now trading at a price of $14.26. If you want to know more, read the company's complete 10-Q report here.
