IT incident response platform PagerDuty (NYSE:PD) will be announcing earnings results tomorrow after market close. Here's what to expect.
PagerDuty met analysts' revenue expectations last quarter, reporting revenues of $111.1 million, up 10.1% year on year. It was a weaker quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter. It lost 10 customers and ended up with a total of 15,039.
Is PagerDuty a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting PagerDuty's revenue to grow 8% year on year to $111.5 million, slowing from the 20.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
![PagerDuty Total Revenue](https://news-assets.stockstory.org/chart-images/PagerDuty-Total-Revenue_2024-05-29-070207_bshk.png)
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PagerDuty has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.7% on average.
Looking at PagerDuty's peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Datadog delivered year-on-year revenue growth of 26.9%, beating analysts' expectations by 3.3%, and Dynatrace reported revenues up 21.1%, topping estimates by 1.4%. Datadog traded down 7.7% following the results while Dynatrace was up 4.4%.
Read our full analysis of Datadog's results here and Dynatrace's results here.
Investors in the software development segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. PagerDuty is down 1.4% during the same time and is heading into earnings with an average analyst price target of $26.7 (compared to the current share price of $19.69).
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