PagerDuty (PD) Reports Q2: Everything You Need To Know Ahead Of Earnings

Max Juang /
2023/08/30 6:53 am EDT

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

Last quarter PagerDuty reported revenues of $103.2 million, up 20.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue for the next quarter and theĀ full-year missing analysts' expectations. The company lost 155 customers and ended up with a total of 15,089.

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 16.2% year on year to $104.9 million, slowing down from the 33.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 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 2.26%.

Looking at PagerDuty's peers in the cloud monitoring segment, some of them have already reported Q2 earnings results, giving us a hint what we can expect. New Relic delivered top-line growth of 12.1% year on year, beating analyst estimates by 1.33% and Dynatrace reported revenues up 24.5% year on year, exceeding estimates by 1.72%. New Relic traded up 13.4% on the results, Dynatrace was flat on the results.

Read our full analysis of New Relic's results here and Dynatrace's results here.

Technology stocks have been hit hard by fears of higher interest rates and while some of the cloud monitoring stocks have fared somewhat better, they have not been spared, with share price declining 8.82% over the last month. PagerDuty is down 0.55% during the same time, and is heading into the earnings with analysts' averageĀ price target of $30.9, compared to share price of $25.13.

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.