PagerDuty shares plunge 13% on revenue miss, weak guidance

SAN FRANCISCO - PagerDuty Inc. (NYSE:PD ) reported second quarter earnings that beat estimates, but shares tumbled 13.78% in after-hours trading as revenue fell short of expectations and the company provided weaker-than-anticipated guidance.

The digital operations management platform posted adjusted earnings per share of $0.21, surpassing the analyst consensus of $0.17. Revenue grew 7.7% YoY to $115.9 million, slightly below the $116.51 million analysts expected.

PagerDuty's outlook disappointed investors. For the third quarter, the company forecasts revenue of $115.5-$117.5 million, well below the $120.3 million consensus. Full-year revenue guidance was also cut to $463-$467 million from the previous $471-$477 million range, falling short of the $473.7 million analysts anticipated.

"We remain confident in ARR growth acceleration as global outages reinforce that incident management has become a CEO priority," said Jennifer Tejada, Chairperson and CEO of PagerDuty.

The company maintained profitability, reporting non-GAAP operating income of $20.1 million, with a 17.3% operating margin. Free cash flow was $33.3 million for the quarter.

PagerDuty ended the quarter with 15,044 paid customers, down slightly from 15,146 a year ago. However, customers with annual recurring revenue over $100,000 grew 6% to 820.

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Source: Investing.com