Pagerduty’s ARR Reliability Under Scrutiny: Investors Warned of Potential Misleading Metrics

Pagerduty, Inc. (PD) has disclosed a new risk, in the Accounting & Financial Operations category.

Pagerduty, Inc. faces a significant risk regarding the reliability of its annual recurring revenue (ARR) and other operational metrics, which are derived from internal data and assumptions that have not been independently verified. These metrics may not accurately reflect the company’s actual performance or predict future results, as they are influenced by different factors than those affecting revenue. Investors are cautioned against placing undue reliance on these metrics, as they may not be comparable to similar metrics from other companies and do not account for potential contract non-renewals or service cancellations. Consequently, the ARR and operational data should be considered with an understanding of their inherent limitations and assumptions.

The average PD stock price target is $18.70, implying 31.14% upside potential.

To learn more about Pagerduty, Inc.’s risk factors, click here.