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PagerDuty (PD) to Report Q3 Earnings: What's in the Offing?

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PagerDuty (PD - Free Report) is set to release third-quarter fiscal 2021 results on Dec 3.

For the quarter, the company expects total revenues between $52 million and $53 million. On a non-GAAP basis, loss is expected between 10 cents and 11 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $52.5 million, suggesting growth of 22.9% from the figure reported in the year-ago quarter.

The consensus mark for loss stayed at 10 cents per share over the past 30 days. PagerDuty had reported a loss of 10 cents in the year-ago quarter.
 

PagerDuty Inc. Price and EPS Surprise

 

PagerDuty Inc. Price and EPS Surprise

PagerDuty Inc. price-eps-surprise | PagerDuty Inc. Quote

Let’s see how things have shaped up for this announcement.

Factors to Watch

PagerDuty is expected to have benefited from the ongoing digital transformation accelerated by the coronavirus pandemic. The company’s clientele expanded to 13,346 at the end of fiscal second quarter. The momentum is likely to have continued in the to-be-reported quarter.

PagerDuty’s ability to resolve outages and incidents within a short span of time has been a major catalyst. The company is also gaining traction from expanding digital-use cases including cloud adoption, DevOps, security, distributed architecture and remote working.

Moreover, enhanced automation and intelligence capabilities of Dynamic Service Directory, Business Response and Intelligent Triage solutions are expected to increase demand for PagerDuty’s solutions.

Additionally, integration with the likes of Zoom (ZM - Free Report) and Microsoft Teams is expected to have aided top-line growth in the to-be-reported quarter.

Further, this Zacks Rank #3 (Hold) company earns majority of its revenues from subscriptions, much similar to its Zacks Internet Software peers like Anaplan (PLAN - Free Report) and HubSpot (HUBS - Free Report) . Notably, subscription-based businesses have proved resilient to the disruption caused by the pandemic. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Markedly, Anaplan and HubSpot reported subscription-revenue growth of 31.4% and 32%, respectively, in their recently concluded quarterly results.

Key Q3 Development

During fiscal third quarter, PagerDuty completed the acquisition of Rundeck, a well-known provider of DevOps automation for enterprise for roughly $100 million.

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