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PagerDuty (PD) Q1 Loss Narrower Than Expected, Revenues Rise
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PagerDuty, Inc. (PD - Free Report) reported first-quarter fiscal 2022 non-GAAP loss of 8 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents. However, the figure was wider than the year-ago quarter’s loss of 4 cents.
Revenues of $63.6 million improved 27.7% on a year-over-year basis, primarily driven by strong expansion in the enterprise and mid-market. The top line beat the consensus estimate for revenues by 2.6%.
During first-quarter fiscal 2022, the company continued to witness strength in the enterprise and mid-market, with total dollar-based net retention of 121% and enterprise dollar-based net retention of more than 125% at the end of the quarter.
PagerDuty had over 16,800 companies on it’s platform as of Apr 30, 2021. New customers added within the quarter under review included Drizly, Jaguar Land Rover, Lunchbox, OAG Aviation, Pony.ai, Swissquote Bank and Truist Financial, while customer expansions included Adevinta, Bell Canada, Glovo, LegalZoom, Nvidia, Retail Business Services and Vroom.
The annual recurring revenue (ARR) for PagerDuty’s digital operations platform increased 93% over the last year.
Moreover, PagerDuty has more than 560 total integrations and a deep bench of partners now.
Quarter Details
In first-quarter fiscal 2022, non-GAAP gross profit rose 25.5% year over year to $54.2 million. Gross margin contracted 150 basis points (bps) to 85.2%.
Non-GAAP research & development (R&D) expenses increased 21.3% to $15.5 million. Additionally, non-GAAP sales & marketing (S&M) expenses rose 33.3% year over year to $32.5 million. Moreover, non-GAAP general & administrative (G&A) expenses increased 15.9% to $11.8 million.
Non-GAAP operating loss of $5.6 million was wider than the year-ago quarter’s loss of $4.1 million.
Balance Sheet & Cash Flow
As of Apr 30, 2021, PagerDuty had cash and cash equivalents and current investments of $557 million compared with $560.2 million in the previous quarter.
Netcash provided by operating activities was $1.6 million, up 900% year over year. Free cash outflow was $0.4 million. The company had reported free cash outflow of $2.9 million in the year-ago quarter.
Guidance
For second-quarter fiscal 2022, revenues are anticipated between $64.5 million and $66.5 million, indicating year-over-year growth of 27% to 31%. Non-GAAP net loss per share is expected between 15 cents and 16 cents.
For fiscal 2022, revenues are anticipated between $267 million and $272 million. Non-GAAP net loss per share is expected in the range of 36 cents to 42 cents.
Zacks Rank & Stocks to Consider
Currently, PagerDuty carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate for Lam Research, Advanced Micro Devices and Digital Turbine is currently pegged at 32.8%, 35.01%, and 50%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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PagerDuty (PD) Q1 Loss Narrower Than Expected, Revenues Rise
PagerDuty, Inc. (PD - Free Report) reported first-quarter fiscal 2022 non-GAAP loss of 8 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents. However, the figure was wider than the year-ago quarter’s loss of 4 cents.
Revenues of $63.6 million improved 27.7% on a year-over-year basis, primarily driven by strong expansion in the enterprise and mid-market. The top line beat the consensus estimate for revenues by 2.6%.
During first-quarter fiscal 2022, the company continued to witness strength in the enterprise and mid-market, with total dollar-based net retention of 121% and enterprise dollar-based net retention of more than 125% at the end of the quarter.
PagerDuty Inc. Price, Consensus and EPS Surprise
PagerDuty Inc. price-consensus-eps-surprise-chart | PagerDuty Inc. Quote
Customer Growth
PagerDuty had over 16,800 companies on it’s platform as of Apr 30, 2021. New customers added within the quarter under review included Drizly, Jaguar Land Rover, Lunchbox, OAG Aviation, Pony.ai, Swissquote Bank and Truist Financial, while customer expansions included Adevinta, Bell Canada, Glovo, LegalZoom, Nvidia, Retail Business Services and Vroom.
The annual recurring revenue (ARR) for PagerDuty’s digital operations platform increased 93% over the last year.
Moreover, PagerDuty has more than 560 total integrations and a deep bench of partners now.
Quarter Details
In first-quarter fiscal 2022, non-GAAP gross profit rose 25.5% year over year to $54.2 million. Gross margin contracted 150 basis points (bps) to 85.2%.
Non-GAAP research & development (R&D) expenses increased 21.3% to $15.5 million. Additionally, non-GAAP sales & marketing (S&M) expenses rose 33.3% year over year to $32.5 million. Moreover, non-GAAP general & administrative (G&A) expenses increased 15.9% to $11.8 million.
Non-GAAP operating loss of $5.6 million was wider than the year-ago quarter’s loss of $4.1 million.
Balance Sheet & Cash Flow
As of Apr 30, 2021, PagerDuty had cash and cash equivalents and current investments of $557 million compared with $560.2 million in the previous quarter.
Netcash provided by operating activities was $1.6 million, up 900% year over year. Free cash outflow was $0.4 million. The company had reported free cash outflow of $2.9 million in the year-ago quarter.
Guidance
For second-quarter fiscal 2022, revenues are anticipated between $64.5 million and $66.5 million, indicating year-over-year growth of 27% to 31%. Non-GAAP net loss per share is expected between 15 cents and 16 cents.
For fiscal 2022, revenues are anticipated between $267 million and $272 million. Non-GAAP net loss per share is expected in the range of 36 cents to 42 cents.
Zacks Rank & Stocks to Consider
Currently, PagerDuty carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) ), which sports a Zacks #1 Rank (Strong Buy), and Advanced Micro Devices, Inc., (AMD - Free Report) and Digital Turbine, Inc. (APPS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Lam Research, Advanced Micro Devices and Digital Turbine is currently pegged at 32.8%, 35.01%, and 50%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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