Third quarter GAAP operating loss of $24.8 million, non-GAAP operating loss of $5.0 million
PagerDuty, Inc, a leader in digital operations management, today announced financial results for the third quarter of fiscal 2022, ended October 31, 2021.
“PagerDuty’s platform converges Incident Response, AIOps, Automation and now Customer Service Operations to deliver rapid ROI and customer trust, building on a strong foundation of digital infrastructure to become the Operations Cloud for the modern enterprise.”
“Q3 was an outstanding quarter for PagerDuty as we delivered record revenue of $72 million and grew 33% year over year. Our product innovation continues to accelerate across use cases and departments as we empower enterprises to mature their digital operations and deliver superior customer experiences,” said Jennifer Tejada, Chairperson and CEO at PagerDuty. “PagerDuty’s platform converges Incident Response, AIOps, Automation and now Customer Service Operations to deliver rapid ROI and customer trust, building on a strong foundation of digital infrastructure to become the Operations Cloud for the modern enterprise.”
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Third Quarter Fiscal 2022 Financial Highlights
- Revenue was $71.8 million, an increase of 33.5% year over year.
- GAAP operating loss was $24.8 million; GAAP operating margin of negative 34.6%.
- Non-GAAP operating loss was $5.0 million; non-GAAP operating margin of negative 7.0%.
- GAAP net loss per share was $0.31; non-GAAP net loss per share was $0.07.
- Operating cash flow was $2.7 million, with free cash flow of $1.8 million.
- Cash, cash equivalents and current investments were $545.3 million as of October 31, 2021.
The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between historical GAAP and non-GAAP information.
Third Quarter and Recent Highlights
- Total paid customers of 14,486 as of October 31, 2021, compared to 13,725 in the year ago period.
- Customers with annual recurring revenue (“ARR”) over $100,000 was 543 as of October 31, 2021, compared to 401 in the year ago period.
- Land and Expand: PagerDuty’s go to market engine continues to bring in new customers and expand with current customers including Albertsons, Cox Automotive, Cuscal (the largest independent provider of payments solutions for the Australian financial services sector), Guidewire, Hopin, Lululemon Athletica, Saviynt, Shopify, and Truist Financial.
- Dollar-based net retention rate of 124% as of October 31, 2021, compared to 119% in the year ago period.
- International revenue of 24% of revenue as of October 31, 2021, consistent with the year ago period.
- Announced a series of fall product releases to enhance the PagerDuty Operations Cloud.
- Announced an update to PagerDuty for Salesforce Service Cloud.
- Announced new integrations to Datadog: Status Dashboard by Pager Duty and Incidents by PagerDuty.
- Announced plans to establish a cross-functional hub of innovation and development in Lisbon, Portugal.
- Featured case studies: Guidewire and SPS Commerce.
Financial Outlook
For the fourth quarter of fiscal 2022, PagerDuty currently expects:
- Total revenue of $75.5 million – $76.5 million, representing a growth rate of 27% – 29% year over year
- Non-GAAP net loss per share of $0.06 – $0.05 assuming approximately 86 million shares
For the full fiscal year 2022, PagerDuty currently expects:
- Total revenue of $278.5 million – $279.5 million, representing a growth rate of 30% – 31% year over year
- Non-GAAP net loss per share of $0.34 – $0.33 assuming approximately 84 million shares
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.
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PagerDuty has not reconciled its expectations as to non-GAAP net loss per share to GAAP net loss per share because certain items are out of its control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP net loss per share is not available without unreasonable effort.
Conference Call Information:
PagerDuty will host a conference call and live webcast for analysts and investors at 2:00 p.m. Pacific Time on December 7, 2021. 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 should monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s Twitter account (twitter.com/pagerduty), the Twitter account @jenntejada and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts.
