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PagerDuty (PD) Q4 Loss Narrower Than Expected, Revenues Rise

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PagerDuty (PD - Free Report) reported fourth-quarter fiscal 2022 non-GAAP loss of 4 cents per share that beat the Zacks Consensus Estimate by 33.33% and was narrower than the year-ago quarter’s loss of 6 cents.

Revenues of $78.5 million increased 32.4% on a year-over-year basis, primarily driven by strong expansion in the enterprise and mid-market. The figure beat the consensus estimate for revenues by 3.2%.

International revenues accounted for 24% of total revenues.

PagerDuty shares were up 14% in after-hours trading following the results. PagerDuty shares have underperformed against the Zacks Computer and Technology sector as well as its Zacks Internet Software peers like CrowdStrike (CRWD - Free Report) and Benefitfocus (BNFT - Free Report) , but has outperformed Fastly (FSLY - Free Report) year to date.

While PagerDuty shares declined 22.7%, the Computer and Technology sector has been down 20.8%. Benefitfocus, CrowdStrike and Fastly shares are down 5.8%, 7.4% and 56.5% on a year-to-date basis, respectively.

 

PagerDuty Price, Consensus and EPS Surprise PagerDuty Price, Consensus and EPS Surprise

PagerDuty price-consensus-eps-surprise-chart | PagerDuty Quote

 

Customer Growth Aids Top Line

PagerDuty continued to see strength in the enterprise and mid-market, with total dollar-based net retention rate of 124% as of Jan 31, 2022.

Customers with annual recurring revenues (“ARR”) of more than $100,000 were 594 as of Jan 31, 2022, compared with 426 a year ago.

Customers with ARR of more than $1,000,000 was 43 as of Jan 31, 2022, compared with 26 a year ago.

Total paid customers were 14,865 as of Jan 31, 2022.

Quarter Details

In fourth-quarter fiscal 2022, non-GAAP gross profit rose 30.1% year over year to $66.1 million. Gross margin contracted 150 basis points (bps) to 84.2%.

Non-GAAP research & development (R&D) expenses increased 42.7% to $19.3 million.

Non-GAAP sales & marketing (S&M) expenses rose 22.9% year over year to $36.5 million. Non-GAAP general & administrative (G&A) expenses increased 5.2% from the year-ago quarter to $12.7million.

Non-GAAP operating loss of $2.5 million was narrower than the year-ago quarter’s loss of $4.6 million.

Balance Sheet & Cash Flow

As of Jan 31, 2022, PagerDuty had cash and cash equivalents and current investments of $543.4 million.

Net cash provided by operating activities was $1.35 billion compared with $3.39 billion reported in the year-ago quarter.

Guidance

For first-quarter fiscal 2023, revenues are anticipated between $81.5 million and $83.5 million, indicating year-over-year growth of 28-31%. Non-GAAP net loss is expected between 9 cents and 8 cents per share.

For fiscal 2023, revenues are anticipated between $360 million and $366 million. Non-GAAP net loss per share is expected between 23 cents and 17 cents.

Zacks Rank

Currently, PagerDuty carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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