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PagerDuty (PD) Expands Portfolio With the Jeli Acquisition

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PagerDuty (PD - Free Report) has successfully completed the acquisition of Jeli. The latter’s Jeli.io platform allows users to respond to, manage and analyze incidents to build more resilient infrastructure and teams.

The acquisition will add an enterprise-grade, all-in-one incident management solution within the PagerDuty Operations Cloud. This integration aims to enhance enterprise resilience, minimize the impact of operational failures, and reduce the reliance on costly point solutions.

The PagerDuty Operations Cloud seamlessly combines Incident Management, AIOps, Automation and Customer Service Operations in a flexible and user-friendly platform. Catering to the needs of IT, DevOps, security, and business teams engaged in mission-critical and time-sensitive operations, this unified solution is designed to streamline workflows and improve overall efficiency.

The incorporation of Jeli's user experience into PagerDuty ensures effective collaboration during and after incidents, empowering customers to identify improvement opportunities and implement actionable insights for positive operational change.

PagerDuty Price and Consensus

 

PagerDuty Price and Consensus

PagerDuty price-consensus-chart | PagerDuty Quote

 

PagerDuty Benefits from a Strong Portfolio

PagerDuty is riding on consistent strength in its diverse portfolio and strategic acquisitions, exemplified by the addition of Jeli, ensuring leadership in digital operations management tailored to IT, DevOps, security, and business sectors.

In October, PagerDuty strengthened its Operations Cloud with AIOps and automation, responding to the financial risks revealed in an IDC survey, where more than 53% of organizations indicate that an hour of downtime incurs a minimum cost of $100,000 and leveraging PagerDuty can result in up to 75% less downtime, potentially saving millions annually.

Expanding its AI capabilities, PagerDuty introduced AI-generated runbooks in its second fiscal quarter of 2024, elevating automation initiatives that align with cost optimization and operational efficiency goals.

PagerDuty benefits from an expanding clientele, with nearly 30% of enterprise clients broadening partnerships, and strengthened its market presence by landing and expanding services with major clients like Banco Santander, Cisco Systems, Confluent, DocuSign, Grammarly, HubSpot and Nvidia.

PagerDuty achieved the FedRAMP In Process status, advancing its capabilities for streamlined operations and automated solutions catering to U.S. federal government agencies and large commercial customers.

PD expects net sales to be $106.5-$108.5 million for the third quarter of fiscal 2024. Non-GAAP earnings are anticipated to be $0.13-$0.14 per share.

The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $106.95 million, indicating 13.54% year-over-year growth. The consensus mark for earnings is pegged at 13 cents per share.

For fiscal 2024, PD expects revenues between $426 million and $430 million. Non-GAAP earnings are anticipated to be between 60 cents per share and 65 cents.

Zacks Rank & Stocks to Consider

Currently, PagerDuty has a Zacks Rank #3 (Hold).

PagerDuty shares have declined 18% year to date against the Zacks Computer & Technology sector’s rally of 44.4%.

NVIDIA (NVDA - Free Report) , NetEase (NTES - Free Report) and Intel (INTC - Free Report) are a couple of better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVDA, NTES and INTC shares have returned 237.3%, 61.3% and 65.8%, respectively, on a year-to-date basis.

Long-term earnings growth rates for NVIDIA, NetEase and Intel are pegged at 13.5%,15.98 and 14.18%, respectively.

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