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PagerDuty (PD) Q4 Earnings Beat Estimates, Revenues Up Y/Y
PagerDuty (PD - Free Report) reported a fourth-quarter fiscal 2023 non-GAAP earnings of 8 cents per share that crushed the Zacks Consensus Estimate of 2 cents. It reported a loss of 4 cents in the year-ago quarter.
Revenues of $101 million increased 28.6% 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 2.1%.
International revenues accounted for 24% of the total revenues.
PagerDuty shares were up 3.81% in after-hours trading following the results. The company’s shares have underperformed the Zacks Computer and Technology sector, as well as its Zacks Internet Software peers like Fastly (FSLY - Free Report) , Meta Platforms (META - Free Report) and Qualitrics (XM - Free Report) in the past year.
PagerDuty Price, Consensus and EPS Surprise
PagerDuty price-consensus-eps-surprise-chart | PagerDuty Quote
PagerDuty shares have gained 3.7% in the past year against the Computer and Technology sector's fall of 15.3%. Meta Platforms, Qualitrics and Fastly shares have declined 2.9%, 40.5% and 5.6% in the past year, respectively.
Customer Growth Aids Top Line
PagerDuty continued to see strength in the enterprise and mid-market, with a total dollar-based net retention rate of 120% as of Jan 31, 2023.
PD closed the fiscal fourth quarter with 15,244 total paid customers as of Jan 31, 2023, compared with 14,865 at the end of the year-ago period.
Customers with annual recurring revenues (“ARR”) of more than $100,000 were 752 as of Jan 31, 2023, compared with 594 a year ago.
Customers with an ARR of more than $1,000,000 were 50 as of Jan 31, 2023, compared with 43 a year ago.
In fourth-quarter fiscal 2023, the non-GAAP gross profit rose 31.7% year over year to $87 million. The gross margin expanded 200 basis points to 86.2%.
Non-GAAP research and development expenses increased 19.7% to $23.1 million.
Non-GAAP sales and marketing expenses rose 15.3% year over year to $42.1 million. Non-GAAP general and administrative expenses increased 23% from the year-ago quarter to $15.6 million.
Non-GAAP operating earnings were $6.1 million against the year-ago quarter’s loss of $2.5 million.
Balance Sheet & Cash Flow
As of Jan 31, 2023, 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.
For first-quarter fiscal 2024, revenues are anticipated between $102 million and $104 million, indicating year-over-year growth of 19-22%. Non-GAAP net earnings are expected between 9 cents and 10 cents per share.
For fiscal 2023, PagerDuty expects revenues between $446 million and $452 million. This Zacks Rank #3 (Hold) company expects non-GAAP net earnings between 45 cents and 50 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.