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Jul 31, 2023

PagerDuty Q2 2024 Earnings Report

PagerDuty's financial performance exceeded expectations in Q2 2024, marked by revenue growth, improved operational efficiency, and advancements in AI offerings.

Key Takeaways

PagerDuty reported a 19% year-over-year increase in revenue, reaching $107.6 million in the second quarter of fiscal year 2024. The company demonstrated improved operational efficiency with a 13% non-GAAP operating margin. PagerDuty also advanced its generative AI offerings, including AI-generated runbooks, to address customer priorities such as revenue protection, cost reduction, and risk mitigation.

Revenue increased by 19% year-over-year to $107.6 million.

GAAP operating loss was $26.2 million, while non-GAAP operating income was $14.3 million.

Annual recurring revenue (ARR) grew 17% year-over-year to $431.0 million.

The company expanded its generative AI offering through AI-generated runbooks.

Total Revenue
$108M
Previous year: $90.3M
+19.2%
EPS
$0.2
Previous year: -$0.04
-600.0%
Total Paid Customers
15.15K
Previous year: 15.17K
-0.2%
Gross Profit
$87.8M
Previous year: $71.9M
+22.1%
Cash and Equivalents
$299M
Previous year: $278M
+7.3%
Free Cash Flow
$8.74M
Previous year: $1.01M
+761.7%
Total Assets
$812M
Previous year: $785M
+3.5%

PagerDuty

PagerDuty

Forward Guidance

For the third quarter of fiscal 2024, PagerDuty expects total revenue of $106.5 million - $108.5 million, representing a growth rate of 13% - 15% year over year, and non-GAAP net income per diluted share of $0.13 - $0.14 assuming approximately 105 million diluted shares. For the full fiscal year 2024, PagerDuty expects total revenue of $426.0 million - $430.0 million, representing a growth rate of 15% - 16% year over year, and non-GAAP net income per diluted share of $0.60 - $0.65 assuming approximately 105 million diluted shares.

Positive Outlook

  • Expects total revenue of $106.5 million - $108.5 million for Q3 2024.
  • Q3 revenue represents a growth rate of 13% - 15% year over year
  • Expects non-GAAP net income per diluted share of $0.13 - $0.14 for Q3 2024.
  • Expects total revenue of $426.0 million - $430.0 million for fiscal year 2024.
  • Fiscal year 2024 revenue represents a growth rate of 15% - 16% year over year