PagerDuty (PD) Stock

Although the revenue and EPS for PagerDuty (PD) give a sense of how its business performed in the quarter ended October 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

PagerDuty, Inc. (NYSE:PD ) Q3 2025 Earnings Conference Call November 26, 2024 5:00 PM ET Company Participants Tony Righetti - Vice President, Investor Relations Jennifer Tejada - Chairperson & Chief Executive Officer Howard Wilson - Chief Financial Officer Conference Call Participants Sanjit Singh - Morgan Stanley Rob Oliver - Baird Koji Ikeda - Bank of America Jeff Van Rhee - Craig-Hallum Andrew Sherman - TD Cowen Jacob Zerbib - William Blair Nick Altmann - Scotiabank Miller Jump - Truist Simran Biswal - RBC Capital Markets Tony Righetti Good afternoon, and thank you for joining us to discuss PagerDuty's Third Quarter Fiscal Year 2025 Results. With me on today's call are Jennifer Tejada, PagerDuty's Chairperson and Chief Executive Officer; and Howard Wilson, our Chief Financial Officer.

PagerDuty (PD) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.20 per share a year ago.

There's still “a higher level of scrutiny on any major purchase,” PagerDuty's CFO says.

The slowdown in PagerDuty's revenue growth is attributed to macroeconomic conditions, not structural issues. PD's strategic pivot to focus on enterprise accounts is promising, with strong execution evident in growing large accounts and stable ARR growth. Valuation is attractive, with potential for significant upside as revenue growth accelerates, potentially reaching a share price of ~$33, representing ~76% upside.

PD's second-quarter fiscal 2025 results benefit from an expanding customer base. However, weak top-line guidance negatively impacts share price.

Two cloud-related stocks are putting pressure on the sector today.

PagerDuty's Q2 FY25 earnings report shows stabilization in customer metrics and revenue, leading to an upgrade from Sell to Hold. The company reported a 7.8% y/y revenue increase to $116 million, with ARR growing 10% y/y, indicating potential growth in H2 FY25. Management's cost control measures improved operating margins by 400 basis points, with adjusted operating margins reaching 17.3% in Q2.

PagerDuty (PD) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.19 per share a year ago.