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PagerDuty (PD) to Report Q1 Earnings: What's in the Cards?

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PagerDuty (PD - Free Report) is set to release first-quarter fiscal 2022 results on Jun 3.

For the quarter, the company expects total revenues between $61 million and $63 million, indicating a growth rate of 23-27% from the year-ago quarter’s reported figure. On a non-GAAP basis, loss is expected between 9 cents and 10 cents per share.

Historically, the first-quarter revenues for PagerDuty has always been seasonally sluggish than all its other quarters’ readings.

The Zacks Consensus Estimate for revenues is pegged at $61.96 million, suggesting growth of 24.43% from the figure reported in the year-ago quarter.

The consensus mark for loss has stayed at 10 cents per share over the past 30 days. PagerDuty had reported a loss of 4 cents per share in the year-ago quarter.

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

PagerDuty Inc. Price and EPS Surprise

PagerDuty Inc. Price and EPS Surprise

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

Factors to Watch

PagerDuty’s results for the fiscal first quarter are expected to reflect benefits of the digitalization wave accelerated by the pandemic. The company had above 13,800 customers at the end of the fourth quarter of fiscal 2021 including new enterprise customers, such as Morgan Stanley, Netflix, Marqeta, Okta and Slack. The momentum is expected to have continued in the to-be-reported quarter too.

PagerDuty’s ability to resolve outages and incidents within a short span of time is likely to have increased demand from customers in the to-be reported quarter, much like the fiscal fourth quarter.

The company is also gaining traction from adopting customer service and security, digital transition, cloud migration and DevOps transformation.

Moreover, enhanced automation and intelligence capabilities of Dynamic Service Directory, Business Response and Intelligent Triage solutions might have buoyed demand for PagerDuty’s solutions.

Additionally, integration with the likes of Zoom and Microsoft Teams is likely to have aided top-line growth in the to-be-reported quarter.

Further, this currently 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) , Nice (NICE - Free Report) and Workday (WDAY - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PagerDuty’s subscription-based business is expected to have been resilient to the pandemic-triggered disruption and economic downturn in the quarter to be reported.

Markedly, Anaplan’s first-quarter fiscal 2022 subscription revenues (91.2% of total revenues) rallied 26.1% year over year to $118.3 million. NICE’s first-quarter 2021 non-GAAP cloud revenues (50.3% of revenues) rose 33% year over year to $230 million. Workday reported first-quarter fiscal 2022 subscription revenues (87.8% of total revenues) of $1.03 billion, up 17% year over year.

Key Q1 Development

In the fiscal first quarter, PagerDuty announced that it will be expanding its datacenter presence within Europe along with the public cloud giant Amazon Web Services (AWS) to give European users access to a locally-hosted version of its digital operations management.

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