PagerDuty Reports Q2 Results, Provides Guidance

PagerDuty, Inc. (NYSE:PD) reported its Q2 results, with revenue coming in at $90.3 million, up 33.6% year-over-year. While revenue, EPS, and operating margin came in ahead of expectations, billings fell a bit short.

Paid customers grew 7% year-over-year to 15,174 in Q2 and customers spending $100,000 in ARR grew 38% to 689. Total customers grew to over 22,000, up 23% year-over-year with free services providing a good funnel for future paid growth.

Q3 and full 2023-year revenue guidance was in-line with expectations at $93 million/$367.5 million respectively. Q3 and 2023 EPS beat consensus at ($0.035)/($0.11) and management expects to be profitable by fiscal 2024.

According to the analyst at RBC Capital, the key focus remains on the company's ability to deliver a mission-critical run-time platform and higher ROI, which is becoming increasingly important in this macro with customers potentially tightening IT budgets.