What To Expect From PagerDuty’s (PD) Q1 Earnings

Kayode Omotosho /
2022/06/01 8:50 am EDT
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IT incident response platform PagerDuty (NYSE:PD) will be reporting results tomorrow afternoon. Here's what investors should know.

Last quarter PagerDuty reported revenues of $78.5 million, up 32.4% year on year, beating analyst revenue expectations by 3.19%. It was a solid quarter for the company, with full-year guidance beating analysts' expectations and a very optimistic guidance for the next quarter. The company added 379 customers to a total of 14,865.

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 30.3% year on year to $82.9 million, in line with the 27.7% 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 2.54%.

Looking at PagerDuty's peers in the cloud monitoring segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Sumo Logic delivered top-line growth of 25.1% year on year, beating analyst estimates by 2.67% and Dynatrace reported revenues up 28.5% year on year, exceeding estimates by 2.44%. Sumo Logic traded up 6.49% on the results, and Dynatrace was up 6.29%. Read our full analysis of Sumo Logic's results here and Dynatrace's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 10.2% over the last month. PagerDuty is down 11.7% during the same time, and is heading into the earnings with analyst price target of $40.6, compared to share price of $24.65.

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.