PagerDuty, Inc.

PagerDuty exceeded analyst expectations regarding revenue and earnings, surpassing the high end of their guidance ranges. Demonstrating a commitment to profitable growth, they reported a robust 15% revenue growth and a non-GAAP operating margin of 14%, showcasing a year-over-year expansion of over 1,000 basis points. The strategic focus on the enterprise segment yielded notable successes. New customer acquisitions and strengthened expansions in enterprise and mid-market sectors outperformed results from the previous fiscal quarters. Despite some sizable renewal issues in Q3, enterprise dollar-based net retention exceeded SMBs by more than 500 basis points, emphasizing resilience and growth in the enterprise segment. PagerDuty’s focus on innovation and generative AI further solidified its position as a leader in incident management solutions. With advancements in AI programs and product enhancements, such as private status pages and ServiceNow CSM case automation, they continued to address evolving customer needs and preferences. The acquisition of Jeli marked a significant step forward, enhancing PagerDuty’s Operations Cloud as a system of action aimed at driving measurable improvements in productivity and resilience. Acknowledging the challenging environment, PagerDuty’s team remains optimistic about the future, citing green shoots of stabilization in the enterprise and mid-market sectors.