PagerDuty Announces Fourth Quarter and Full Year Fiscal 2025 Financial Results
PagerDuty, Inc. (NYSE:PD), a leader in digital operations management, today announced financial results for the fourth quarter and full year of fiscal 2025, ended January 31, 2025. “Our relentless ...
Fourth quarter revenue increased 9.3% year over year to $121 million
Fourth quarter loss from operations was $12 million; non-GAAP operating income was $22 million
Announced $150 million share repurchase program
Introduced Agentic Artificial Intelligence ("AI") offerings in the PagerDuty Operations Cloud
SAN FRANCISCO: PagerDuty, Inc. (NYSE:PD), a leader in digital operations management, today announced financial results for the fourth quarter and full year of fiscal 2025, ended January 31, 2025.
“Our relentless focus on operational excellence and efficient growth delivered another strong quarter, exceeding both top and bottom line guidance ranges,” said Jennifer Tejada, Chairperson and CEO, PagerDuty. “Our customers continue to prioritize digital operations as mission-critical to their business, and PagerDuty is their trusted partner in driving operational efficiency at scale. This quarter's AI innovation, combined with new features added to all PagerDuty Incident Management packages, positions PagerDuty well to accelerate enterprise momentum in the second half.”
PagerDuty also announced today that its Board of Directors has authorized a new share repurchase program for up to $150 million of common stock.
“PagerDuty continues to demonstrate strong business fundamentals and sustainable free cash flow generation,” said Howard Wilson, Chief Financial Officer, PagerDuty. “This second share repurchase program underscores our ongoing commitment to managing share count growth while reflecting our Board and management team’s continued confidence in our long-term strategy and market opportunity.”
Fourth Quarter Fiscal 2025 Financial Highlights
- Revenue was $121.4 million, an increase of 9.3% year over year.
- Loss from operations was $11.7 million; operating margin was negative 9.6%.
- Non-GAAP operating income was $22.3 million; non-GAAP operating margin was 18.3%.
- Net loss per share attributable to PagerDuty, Inc. common stockholders was $0.12.
- Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.22.
- Net cash provided by operating activities was $31.4 million, with free cash flow of $28.6 million.
- Cash, cash equivalents, and investments were $570.8 million as of January 31, 2025.
Full Year Fiscal 2025 Financial Highlights
- Revenue was $467.5 million, an increase of 8.5% year over year.
- Loss from operations was $59.8 million; operating margin was negative 12.8%.
- Non-GAAP operating income was $82.7 million; non-GAAP operating margin was 17.7%.
- Net loss per share attributable to PagerDuty, Inc. common stockholders was $0.59.
- Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.85.
- Net cash provided by operating activities was $117.9 million, with free cash flow of $108.4 million.
The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between GAAP and non-GAAP financial information.
Fourth Quarter and Recent Highlights
- Annual recurring revenue ("ARR") as of January 31, 2025 grew 9% year over year to $494 million.
- Customers with ARR over $100 thousand grew 6% to 849 as of January 31, 2025, compared to 804 in the prior year.
- Dollar-based net retention rate was 106% as of January 31, 2025, compared to 107% in the prior year.
- Free and paid customers totaled more than 31,000 as of January 31, 2025 representing approximately 10% growth year over year.
- Total paid customers were 15,114 as of January 31, 2025, compared to 15,039 in the prior year.
- Remaining performance obligations were $440 million as of January 31, 2025. Of this amount, the Company expects to recognize revenue of approximately $302 million, or 69%, over the next 12 months with the balance to be recognized as revenue thereafter.(1)
- Announced upcoming Agentic AI offering including Agentic Site Reliability Engineer, Operational Insights, and Scheduling Optimization Agents as well as AI use case library.
- Introduced new generative AI and automation features of PagerDuty Advance, which is embedded across the PagerDuty Operations Cloud platform, in collaboration with Amazon Web Services.
- Published the 2025 State of Digital Operations Report, a global survey of 1,100+ information technology ("IT") and business leaders asking about the latest opportunities around operational transformation, AI and automation.
- Named a leader in numerous awards, including Fortune Best Workplaces for Parents, Built In Best Places to Work, 2025 BIG Innovation Awards, and 2024 Forbes CIO Next List.
- Released a research study revealing that 88% of executives expect a major incident in 2025 as large as the July 2024 global IT outage, pointing out the critical nature of PagerDuty.
- Appointed Allison Corley as Chief Customer Officer and David Williams as Senior Vice President of Product.
- Appointed Sarah Franklin to the Board of Directors.
- Lands and expands include: Coreweave Inc., Coupa Software, Inc., Datadirect Networks, Inc., NVIDIA Corporation, Palo Alto Networks, Inc., Pinterest, Inc., Toyota Motors Co., LTD, and Zscaler Inc.
(1)Beginning in the first quarter of fiscal 2025, the Company began to include contracts with an original term of less than 12 months in this disclosure which comprised $128 million of remaining non-cancelable performance obligations as of January 31, 2025. |
Financial Outlook
For the first quarter of fiscal 2026, PagerDuty currently expects:
- Total revenue of $118.0 million - $120.0 million, representing a growth rate of 6% - 8% year over year.
- Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.18 - $0.19 assuming approximately 94 million diluted shares and a non-GAAP tax rate of 22%.
For the full fiscal year 2026, PagerDuty currently expects:
- Total revenue of $500.0 million - $507.0 million, representing a growth rate of 7% - 8% year over year.
- Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.90 - $0.95 assuming approximately 93 million diluted shares and a non-GAAP tax rate of 22%.
These statements are forward-looking and actual results may differ materially. Please refer to the section titled "Forward-Looking Statements" below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
PagerDuty has not reconciled its expectations as to non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders to GAAP net loss per share attributable to PagerDuty, Inc. common stockholders because certain reconciling items such as stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, gains or losses on extinguishment of convertible senior notes, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments are out of PagerDuty's control or cannot be reasonably predicted. Accordingly, such reconciliation is not available without unreasonable effort. However, it is important to note that these reconciling items could have a significant effect on PagerDuty's future GAAP results.
Conference Call Information:
PagerDuty will host a conference call and live webcast (Zoom meeting ID 975 4160 6140) for analysts and investors at 2:00 p.m. Pacific Time on March 13, 2025. For audio only, the dial-in number 1-312-626-6799 may be used. This news release with the financial results will be accessible from PagerDuty’s website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com.
Supplemental Financial and Other Information:
Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s LinkedIn account (https://www.linkedin.com/company/482819), X (formerly Twitter) account @pagerduty, the X account @jenntejada and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts.
Forward-Looking Statements
This press release and the related webcast contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial and operational performance and outlook, including our financial guidance for the first quarter of and full fiscal year 2026, sustainability of free cash flow generation and long-term operating margin target; market positioning, trends and opportunity; our ability to accelerate enterprise momentum in the second half of fiscal 2026; our ability to achieve our mission to revolutionize operations; our strategic initiatives and the timing of the financial impact of those initiatives; expected demand for and benefits of our offerings; our business strategy and plans, including our ability to expand into new use cases; the impact of our recently-launched solutions; our expectations regarding adoption trends and growth prospects and drivers; and our new share repurchase program. Words such as “expect,” “extend,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “accelerate,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K/A filed with the Securities and Exchange Commission ("SEC") on March 18, 2024 and our Quarterly Reports on Form 10-Qs filed with the SEC on May 31, 2024, September 4, 2024, and November 27, 2024. Additional information will be made available in our Annual Report on Form 10-K for the year ended January 31, 2025 which is expected to be filed with the SEC shortly after this release and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to achieve and maintain future profitability; our ability to sustain and manage our growth; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our dependence on revenue from a single product; our ability to compete effectively in an increasingly competitive market; the impact of seasonality on our business; our ability to adapt and respond effectively to rapidly developing technology; our ability to effectively develop and expand our marketing and sales capacities; our ability to enhance and improve our platform or develop new functionality or use cases; the effect of unfavorable conditions in our industry or the global economy, or reductions in information spending, on our business and results of operations; the accuracy of our estimates of market opportunity and forecasts of market growth; adverse consequences that could result from any compromise of our information technology systems or those of third parties with whom we work or our data; adverse consequences that could result from any interruptions or delays in performance of our service; and our ability to maintain the compatibility of our platform with third party applications that our customers use in their businesses.
Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release and the related webcast represent our views as of the date of this press release and the related webcast. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release and the related webcast.
About PagerDuty, Inc.
PagerDuty, Inc. (NYSE:PD) is a global leader in digital operations management, enabling customers to achieve operational efficiency at scale with the PagerDuty Operations Cloud. The PagerDuty Operations Cloud combines AIOps, Automation, Customer Service Operations and Incident Management with a powerful generative AI assistant to create a flexible, resilient and scalable platform to increase innovation velocity, grow revenue, reduce cost, and mitigate the risk of operational failure. Nearly half of the Fortune 500 and approximately two thirds of the Fortune 100 rely on PagerDuty as essential infrastructure for the modern enterprise. To learn more and try PagerDuty for free, visit www.pagerduty.com.
The PagerDuty Operations Cloud
The PagerDuty Operations Cloud is the platform for mission-critical, time-critical operations work in the modern enterprise. Through the power of AI and automation, it detects and diagnoses disruptive events, mobilizes the right team members to respond, and streamlines infrastructure and workflows across your digital operations. The Operations Cloud is essential infrastructure for revolutionizing digital operations to compete and win as a modern digital business.
PAGERDUTY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) | |||||||||||||||
| Three months ended January 31, |
| Year ended January 31, | ||||||||||||
|
| 2025 |
|
|
| 2024 |
|
|
| 2025 |
|
|
| 2024 |
|
Revenue | $ | 121,446 |
|
| $ | 111,117 |
|
| $ | 467,499 |
|
| $ | 430,699 |
|
Cost of revenue(1) |
| 19,974 |
|
|
| 20,358 |
|
|
| 79,665 |
|
|
| 77,832 |
|
Gross profit |
| 101,472 |
|
|
| 90,759 |
|
|
| 387,834 |
|
|
| 352,867 |
|
|
|
|
|
|
|
|
| ||||||||
Operating expenses: |
|
|
|
|
|
|
| ||||||||
Research and development(1) |
| 34,611 |
|
|
| 35,548 |
|
|
| 141,489 |
|
|
| 139,769 |
|
Sales and marketing(1) |
| 53,084 |
|
|
| 53,614 |
|
|
| 201,821 |
|
|
| 196,769 |
|
General and administrative(1) |
| 25,496 |
|
|
| 35,028 |
|
|
| 104,296 |
|
|
| 112,575 |
|
Total operating expenses |
| 113,191 |
|
|
| 124,190 |
|
|
| 447,606 |
|
|
| 449,113 |
|
Loss from operations |
| (11,719 | ) |
|
| (33,431 | ) |
|
| (59,772 | ) |
|
| (96,246 | ) |
|
|
|
|
|
|
|
| ||||||||
Interest income |
| 6,084 |
|
|
| 6,858 |
|
|
| 27,492 |
|
|
| 22,101 |
|
Interest expense |
| (2,370 | ) |
|
| (2,316 | ) |
|
| (9,258 | ) |
|
| (6,500 | ) |
(Loss) gain on partial extinguishment of convertible senior notes |
| — |
|
|
| (271 | ) |
|
| — |
|
|
| 3,699 |
|
Other (expense) income, net |
| (427 | ) |
|
| 528 |
|
|
| (215 | ) |
|
| (433 | ) |
Loss before (provision for) benefit from income taxes |
| (8,432 | ) |
|
| (28,632 | ) |
|
| (41,753 | ) |
|
| (77,379 | ) |
(Provision for) benefit from income taxes |
| (448 | ) |
|
| (185 | ) |
|
| (1,783 | ) |
|
| 12 |
|
Net loss | $ | (8,880 | ) |
| $ | (28,817 | ) |
| $ | (43,536 | ) |
| $ | (77,367 | ) |
Net loss attributable to redeemable non-controlling interest |
| (120 | ) |
|
| (665 | ) |
|
| (801 | ) |
|
| (2,178 | ) |
Net loss attributable to PagerDuty, Inc. | $ | (8,760 | ) |
| $ | (28,152 | ) |
| $ | (42,735 | ) |
| $ | (75,189 | ) |
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