PagerDuty slumps despite fiscal Q1 results, outlook above expectations

PagerDuty said its total number of customers rose by 30% to 16,800, while customers spending over $1 million rose by 55%.
Written by Tiernan Ray, Senior Contributing Writer

DevOps pioneer PagerDuty this afternoon reported fiscal Q1 revenue and profit that topped Wall Street's expectations, and an outlook for the quarter's, and the full year's revenue that was higher as well.

The report sent PagerDuty shares down 7% in late trading

CEO and founder Jennifer Tejada remarked that the company's "business is benefiting from recovery, as both the macro trends and market landscape continue to move in our favor."

Added Tejada,

As communities, industries, and businesses move forward to a post-pandemic world, our platform is essential infrastructure for our customers. Building off a strong close to fiscal 2021, we beat both our top and bottom line guide. Year-over-year revenue growth was 28%, with total dollar based net retention of 121% and enterprise dollar based net retention above 125%. Digital operations are now business operations, while digital acceleration, cloud migration, and DevOps transformation are central business strategies which will drive PagerDuty's success going forward.

Revenue in the three months ended in April rose 28%, year over year, to $63.6 million, yielding a net loss of 8 cents a share, excluding some costs.

Analysts had been modeling $62 million and a 9-cent loss per share.

PagerDuty noted that its customers spending over one million dollars annually on the company's products rose by 55%, year over year. The company's total number of corporations using its product rose by 30% to 16,800 companies.

For the current quarter, the company sees revenue of $64.5 million to $66.5 million, and a net loss in a range of 15 cents to 16 cents per share. That compares to consensus for $63.7 million and a 9-cent loss per share.

For the full year, the company sees revenue in a range of $267 million to $272 million, and a net loss of 36 cents to 42 cents per share. That compares to consensus of $267.7 million and a 39-cent loss per share.

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