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Q4 Earnings Outperformers: PagerDuty (NYSE:PD) And The Rest Of The Cloud Monitoring Stocks


Jabin Bastian /
2022/03/24 7:55 am EDT
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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at PagerDuty (NYSE:PD), and the best and worst performers in the cloud monitoring group.

Software is eating the world, increasing organizations’ reliance on digital-only solutions. As more workloads and applications move to the cloud, the reliability of the underlying cloud infrastructure becomes ever more critical, and ever more complex. To solve the challenge, companies and their engineering teams have turned to a range of cloud monitoring tools that provide them with visibility to troubleshoot the issues in real time.

The 5 cloud monitoring stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 4.71%, while on average next quarter revenue guidance was 2.47% above consensus. The technology sell-off has been putting pressure on stocks since November, but cloud monitoring stocks held their ground better than others, with share price down 2.99% since earnings, on average.

PagerDuty (NYSE:PD)

Started by three former Amazon engineers, PagerDuty (NYSE:PD) is a software as a service platform that helps companies respond to IT incidents fast and make sure that any downtime is minimized.

PagerDuty reported revenues of $78.5 million, up 32.4% year on year, beating analyst expectations by 3.19%. It was a solid quarter for the company, with a full year guidance beating analysts' expectations and a positive outlook for the next quarter.

“Driven by ongoing market traction for our new products and strong go to market execution, Q4 results capped a fiscal year of accelerating growth for PagerDuty. We delivered revenue of $79 million for the quarter and $281 million for the year, both growing 32% year over year, and gained operating leverage which positions us well for durable growth,” said Jennifer Tejada, Chairperson and CEO at PagerDuty.

PagerDuty Total Revenue

The stock is up 35.1% since the results and currently trades at $36.36.

Is now the time to buy PagerDuty? Access our full analysis of the earnings results here, it's free.

Best Q4: Datadog (NASDAQ:DDOG)

Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) is a software as a service platform that makes it easier to monitor cloud infrastructure and applications.

Datadog reported revenues of $326.1 million, up 83.7% year on year, beating analyst expectations by 11.9%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.

Datadog Total Revenue

Datadog pulled off the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 210 enterprise customers paying more than $100,000 annually to a total of 2,010. The stock is down 4.65% since the results and currently trades at $148.38.

Is now the time to buy Datadog? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Dynatrace (NYSE:DT)

Founded in Austria in 2005, Dynatrace (NYSE:DT) provides companies with software that allows them to monitor the performance of their full technology stack, from software applications to the infrastructure they run on.

Dynatrace reported revenues of $240.7 million, up 31.6% year on year, beating analyst expectations by 2.67%. It was an ok quarter for the company, with a strong top line growth, and guidance for the next quarter in line with analysts' expectations.

Dynatrace had the weakest full year guidance update in the group. The stock is down 16% since the results, mainly due to worries about increasing competition, and currently trades at $47.25.

Read our full analysis of Dynatrace's results here.

Sumo Logic (NASDAQ:SUMO)

Founded in 2010 by Christian Beegden who went from driving a cab in Germany to landing an internship at Amazon, Sumo Logic (NASDAQ:SUMO) is software as a service data analytics platform that helps companies get insight into what is happening in their servers and applications.

Sumo Logic reported revenues of $67 million, up 23.8% year on year, beating analyst expectations by 4.23%. It was a decent quarter for the company, with a very strong guidance for the next year and guidance for the next quarter in line with analysts' expectations.

The stock is up 9.4% since the results and currently trades at $11.75.

Read our full, actionable report on Sumo Logic here, it's free.

New Relic (NYSE:NEWR)

With the name being an anagram of its founder, Lew Cirne, New Relic (NYSE:NEWR) makes a monitoring software that collects, scores, and analyses performance data about a client's IT stack.

New Relic reported revenues of $203.5 million, up 22.3% year on year, beating analyst expectations by 1.56%. It was a mixed quarter for the company, with a significant improvement in net revenue retention rate but a decline in gross margin.

New Relic had the weakest performance against analyst estimates and slowest revenue growth among the peers. The company added 53 enterprise customers paying more than $100,000 annually to a total of 1,064. The stock is down 38.7% since the results and currently trades at $66.60.

Read our full, actionable report on New Relic here, it's free.

The author has no position in any of the stocks mentioned