PagerDuty $PD Stock Up 11% In After-hours Trading On Q3 Financials

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PD stock rose 11% in after-hours trading on December 7, 2021, after the company released impressive Q3 financials.

PagerDuty Announces Third Quarter Fiscal 2022 Financial Results

Third quarter revenue increased 33% year-over-year to $72 million

Third quarter GAAP operating loss of $24.8 million, non-GAAP operating loss of $5.0 million

SAN FRANCISCO–(BUSINESS WIRE)– PagerDuty, Inc. (NYSE:PD), a leader in digital operations management, today announced financial results for the third quarter of fiscal 2022, ended October 31, 2021.

PagerDuty reported Q3 EPS of (7c) versus the consensus estimate of (9c). The company reported Q3 revenue of $71.8M versus the consensus estimate of $70.04M.

“Q3 was an outstanding quarter for PagerDuty as we delivered record revenue of $72 million and grew 33% year over year. Our product innovation continues to accelerate across use cases and departments as we empower enterprises to mature their digital operations and deliver superior customer experiences,” said Jennifer Tejada, Chairperson and CEO at PagerDuty. “PagerDuty’s platform converges Incident Response, AIOps, Automation and now Customer Service Operations to deliver rapid ROI and customer trust, building on a strong foundation of digital infrastructure to become the Operations Cloud for the modern enterprise.”

Third Quarter Fiscal 2022 Financial Highlights

  • Revenue was $71.8 million, an increase of 33.5% year over year.
  • GAAP operating loss was $24.8 million; GAAP operating margin of negative 34.6%.
  • Non-GAAP operating loss was $5.0 million; non-GAAP operating margin of negative 7.0%.
  • GAAP net loss per share was $0.31; non-GAAP net loss per share was $0.07.
  • Operating cash flow was $2.7 million, with free cash flow of $1.8 million.
  • Cash, cash equivalents and current investments were $545.3 million as of October 31, 2021.
  • The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between historical GAAP and non-GAAP information.

Third Quarter and Recent Highlights

  • Total paid customers of 14,486 as of October 31, 2021, compared to 13,725 in the year ago period.
  • Customers with annual recurring revenue (“ARR”) over $100,000 was 543 as of October 31, 2021, compared to 401 in the year ago period.
  • Land and Expand: PagerDuty’s go to market engine continues to bring in new customers and expand with current customers including Albertsons, Cox Automotive, Cuscal (the largest independent provider of payments solutions for the Australian financial services sector), Guidewire, Hopin, Lululemon Athletica, Saviynt, Shopify, and Truist Financial.
  • Dollar-based net retention rate of 124% as of October 31, 2021, compared to 119% in the year ago period.
  • International revenue of 24% of revenue as of October 31, 2021, consistent with the year ago period.
  • Announced a series of fall product releases to enhance the PagerDuty Operations Cloud.
  • Announced an update to PagerDuty for Salesforce Service Cloud.
  • Announced new integrations to Datadog: Status Dashboard by Pager Duty and Incidents by PagerDuty.
  • Announced plans to establish a cross-functional hub of innovation and development in Lisbon, Portugal.
  • Featured case studies: Guidewire and SPS Commerce.

Financial Outlook

For the fourth quarter of fiscal 2022, PagerDuty currently expects:

Total revenue of $75.5 million – $76.5 million, representing a growth rate of 27% – 29% year over year
Non-GAAP net loss per share of $0.06 – $0.05 assuming approximately 86 million shares
For the full fiscal year 2022, PagerDuty currently expects:

Total revenue of $278.5 million – $279.5 million, representing a growth rate of 30% – 31% year over year
Non-GAAP net loss per share of $0.34 – $0.33 assuming approximately 84 million shares
These statements are forward-looking and actual results may differ materially. Please refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

PagerDuty has not reconciled its expectations as to non-GAAP net loss per share to GAAP net loss per share because certain items are out of its control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP net loss per share is not available without unreasonable effort.

PagerDuty price target lowered to $48 from $59 at RBC Capital

On December 6, 2021, RBC Capital analyst Matthew Hedberg lowered the firm’s price target on PD stock to $48 from $59 but keeps an Outperform rating on the shares ahead of its results. The company should post “slight upside” to Q3 estimates amid continued momentum following a strong Q2 and its FY22 guidance should move higher given the potential for above 30% revenue growth exiting the year in a normalizing environment, the analyst tells investors in a research note. Hedberg adds however that his reduced price target on PagerDuty reflects multiple contraction among its peers.

Bullish Option Flow Detected In PD Stock

Make sure to review this lesson on option flow so that you understand the image above.

VIDEO PagerDuty CEO Jennifer Tejada on 33% revenue growth

On September 3, 2021, Jennifer Tejada, CEO of PagerDuty, joins “TechCheck” to discuss the company’s earnings and strong growth.

PagerDuty CEO Jennifer Tejada on 33% revenue growth

PD Stock Technical Analysis

Both the long and short-term trends are negative. It is better to avoid buying stocks with negative trends. Volume is considerably higher in the last couple of days. There is a support zone ranging from 30.97 to 30.97. This zone is formed by a combination of multiple trend lines in multiple time frames. There is a resistance zone ranging from 40.12 to 41.12. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. The technical rating of PD is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when PD stock is a good entry.

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