PagerDuty, Inc. has recently released its 10-Q report, providing a detailed insight into its financial and operational performance. The company operates a digital operations management platform that collects data and digital signals from various software-enabled systems and devices. Utilizing machine learning, it correlates, processes, and predicts incidents and opportunities. PagerDuty serves industries such as software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services.
In the 10-Q report, PagerDuty highlighted its key business metrics, including an Annual Recurring Revenue (ARR) of $497.1 million as of October 31, 2025, compared to $483.0 million in 2024. The number of customers also increased to 15,398 in 2025 from 15,050 in 2024, with 867 customers having greater than $100.0 thousand in ARR in 2025, up from 825 in 2024. The dollar-based net retention rate was 100% for the last 12 months ended October 31, 2025, compared to 107% in 2024.
In terms of financial performance, PagerDuty reported a revenue of $124.5 million for the three months ended October 31, 2025, representing a 4.7% increase from the same period in 2024. The company's gross margin also improved to 85.3% in 2025 from 83.0% in 2024, mainly due to decreased amortization of acquired intangible assets and personnel costs.
Moreover, operating expenses decreased by 10.0% to $98.1 million in 2025 from $108.9 million in 2024. Specifically, research and development expenses decreased by 14.2%, sales and marketing expenses decreased by 10.0%, and general and administrative expenses decreased by 4.2%. These reductions were primarily driven by lower stock-based compensation expenses and outside services spend for the customer service team.
As a result of these announcements, the company's shares have moved -23.09% on the market, and are now trading at a price of $11.6749. For the full picture, make sure to review PagerDuty's 10-Q report.
