We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PagerDuty (PD) Q4 Loss Narrower Than Expected, Revenues Rise
Read MoreHide Full Article
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 , 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 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.
Image: Bigstock
PagerDuty (PD) Q4 Loss Narrower Than Expected, Revenues Rise
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 , 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-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.