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Jul 31, 2024
PagerDuty Q2 2025 Earnings Report
PagerDuty reported a solid second quarter with revenue growth within guidance and non-GAAP profitability for the eighth consecutive quarter.
Key Takeaways
PagerDuty's second quarter fiscal year 2025 showed revenue growth of 8% year-over-year, reaching $116 million. The company achieved non-GAAP profitability for the eighth consecutive quarter. Ending ARR grew 10% year-over-year to $474 million.
Revenue increased by 7.7% year-over-year, amounting to $115.9 million.
Loss from operations was $16.0 million, with an operating margin of negative 13.8%.
Non-GAAP operating income reached $20.1 million, resulting in a non-GAAP operating margin of 17.3%.
Free and paid customers totaled more than 29,000, representing approximately 12% growth year over year.
PagerDuty
PagerDuty
Forward Guidance
For the third quarter of fiscal 2025, PagerDuty expects total revenue of $115.5 million - $117.5 million, representing a growth rate of 6% - 8% year over year. Non-GAAP net income per diluted share is expected to be $0.16 - $0.17. For the full fiscal year 2025, PagerDuty expects total revenue of $463.0 million - $467.0 million, representing a growth rate of 7% - 8% year over year and Non-GAAP net income per diluted share of $0.67 - $0.72.
Positive Outlook
- Revenue growth rate of 6% - 8% year over year in Q3 2025.
- Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.16 - $0.17 in Q3 2025.
- Revenue growth rate of 7% - 8% year over year for fiscal year 2025.
- Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.67 - $0.72 for fiscal year 2025.
- Assuming approximately 96 million diluted shares and a non-GAAP tax rate of 23%.
Challenges Ahead
- Total revenue of $115.5 million - $117.5 million in Q3 2025.
- Total revenue of $463.0 million - $467.0 million for the full fiscal year 2025 (down from $471.0 million - $477.0 million).
- These statements are forward-looking and actual results may differ materially.
- PagerDuty has not reconciled forward-looking net loss per share attributable to PagerDuty, Inc. common stock holders to forward-looking non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders because certain items are out of PagerDuty's control or cannot be reasonably predicted.
- Accordingly, such reconciliation is not available without unreasonable effort.