PagerDuty Earnings: What To Look For From PD

Jabin Bastian /
2022/08/31 5:13 am EDT

IT incident response platform PagerDuty (NYSE:PD) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter PagerDuty reported revenues of $85.3 million, up 34.2% year on year, beating analyst revenue expectations by 2.99%. It was a mixed quarter for the company, with a strong top line growth but decelerating customer growth. The company added 175 customers to a total of 15,040.

Is PagerDuty buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting PagerDuty's revenue to grow 30.6% year on year to $88.2 million, in line with the 33.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.

PagerDuty Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.45%.

Looking at PagerDuty's peers in the cloud monitoring segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Dynatrace delivered top-line growth of 27.4% year on year, beating analyst estimates by 2.07% and Datadog reported revenues up 73.8% year on year, exceeding estimates by 6.51%. Dynatrace traded flat on the results, and Datadog was up 8.09%. Read our full analysis of Dynatrace's results here and Datadog's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 2.33% over the last month. PagerDuty is up 6.07% during the same time, and is heading into the earnings with analyst price target of $36.7, compared to share price of $26.7.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.