PagerDuty, Inc.

PagerDuty performed well in the last quarter despite the relatively uncertain environment and delivered an all-around beat. The company saw a good performance in financial services, tech retail, and other verticals. However, the profitability margin was hit in the quarter. PagerDuty continued to see strength in its enterprise, mid-market, and focused segment. Total paid and free customers on its platform grew, and consumers continued to adopt more products and services and expand users. Strong growth was seen in incident response and automation. Digital acceleration and cloud adoption are areas where the company has many ongoing multiyear initiatives. PagerDuty saw solid adoption of its new products, particularly its AIOps and automation, where customers chose the effectiveness and efficiency of its integrated operations cloud offering. The sales pipeline of the company is good for both new products and incident response. We provide the stock of PagerDuty with a ‘Buy’ rating with a revision in the target price.