-Reaffirms Q4 and Fiscal Year 2023 Financial Guidance
-Advances Global Scaling Initiative to Drive Continued Operating Margin Improvement
PagerDuty, Inc., a leader in digital operations management, announced Jeremy Kmet, Senior Vice President, North America Sales and Customer Acquisition, is being appointed Senior Vice President of Global Field Operations, reporting into Chair and CEO Jennifer Tejada, effective February 1, 2023. Dave Justice, Chief Revenue Officer, is leaving the company to pursue other opportunities after the financial year end.
Kmet, who joined the company in 2017, is credited with designing and scaling the land-and-expand motion underpinning PagerDuty’s efficient enterprise and mid-market growth, and setting the company’s performance pace. In Kmet’s expanded role, his leadership will extend beyond the Americas, which represents approximately 75% of annual recurring revenue, to include EMEA and APJ.
“Jeremy is a capable global leader with a track record of success. As we progress towards our goal of operating as a Rule of 40 company, I am confident in his ability to lead our GTM teams through our next phase of efficient growth,” said Tejada. “Jeremy is well respected by our customers, partners and employees, has deep product and domain expertise, and has demonstrated his ability to scale our unique go-to market model effectively and profitably.”
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“I would like to thank Dave for his partnership and many contributions to the company and our customers. He will ensure a seamless transition through the end of the financial year, and we wish him well in his next endeavor.”
As part of the company’s ongoing efforts to drive efficient growth and expand operating margins, PagerDuty is advancing global scaling initiatives designed to increase PagerDuty’s capacity, growing quota carrying and engineering headcount, while improving its cost structure. The changes include reallocating certain roles and realigning teams to continue to improve operational resiliency and agility, and rationalizing the company’s real estate footprint. The immediate impact is a 7% reduction in headcount in the near term, as some roles are eliminated and new roles created in cost-effective, high-talent geographies over time.
Tejada stated, “We are committed to continuing to grow PagerDuty’s revenue more than 20% year-over-year even in an uncertain economic environment. At the same time, we remain committed to continue the trend of significantly improving our operating margin, at least at the same level of improvement as FY23, balancing growth and profitability. These planned changes are designed to reinforce our go-to-market execution, improve operating margins, and enable us to continue to operate from a position of strength. While any action that impacts our employees is difficult, we are confident this is the right path forward for our company over the long term. I want to thank all of our departing employees for their hard work, significant contributions, and commitment to our customers.”
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Financial Outlook – Fourth Quarter and Fiscal Year 2023
For the fourth quarter of fiscal 2023, PagerDuty reaffirms:
- Total revenue of $98.0 million – $100.0 million, representing a growth rate of 25% – 27% year over year
- Non-GAAP net income per diluted share attributable to PagerDuty, Inc. of $0.02 – $0.03 assuming approximately 102 million diluted shares
For the full fiscal year 2023, PagerDuty reaffirms:
- Total revenue of $368.0 million – $370.0 million, representing a growth rate of 31% – 31% year over year
- Non-GAAP net loss per share attributable to PagerDuty, Inc. of $0.01 – $0.00 assuming approximately 90 million basic shares and 101 million diluted shares.
PagerDuty has not reconciled its expectations as to non-GAAP net income (loss) per share attributable to PagerDuty to GAAP net loss per share attributable to PagerDuty because certain items are out of its control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP net income (loss) per share attributable to PagerDuty is not available without unreasonable effort.
In connection with the reallocation of roles, realigning teams and rationalization of real estate, PagerDuty expects to incur approximately $19.0 million to $23.0 million in charges, of which approximately $5.0 million to $7.0 million is expected to be incurred in the fourth quarter fiscal 2023 and $14.0 million to $16.0 million is expected to be incurred by the end of fiscal 2024.
The above information is preliminary and subject to the completion of year-end financial reporting processes and review. PagerDuty expects to release final fourth quarter and fiscal 2023 financial results in more detail and host a conference call in conjunction with the quarterly earnings release in March 2023.
These statements are forward-looking and actual results may differ materially. Please refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.