The earnings call conveyed a generally positive outlook with strong revenue and ARR growth, high net retention rates, and successful adoption of new products. However, challenges in converting large deals and slightly lower than expected billings growth tempered the overall sentiment.

Company Guidance

During the Q3 2025 earnings call, PagerDuty provided a positive outlook despite some deferred large deals. The company reported a 9% revenue growth and a 21% non-GAAP operating margin. Net new ARR increased by $9 million, marking a 21% rise compared to the previous year, and total annual recurring revenue reached $483 million, up 10% year-over-year. Dollar-based net retention stood at 107%, while customers with ARR greater than $500,000 saw a 20% increase. The Operations Cloud's adoption led to an average return on investment of 250% over three years, with a payback period of less than a year. For Q4, PagerDuty anticipates revenue between $118.5 million and $120.5 million, with a projected operating margin of 13%, and for the full fiscal year, the revenue guidance was adjusted slightly upward to a range of $464.5 million to $466.5 million, with an expected operating margin of 16%.

Revenue and Operating Income Surpass Expectations

PagerDuty delivered a solid quarter with revenue growth of 9% and non-GAAP operating margin expanded to 21%, both well above guidance ranges.

Strong Annual Recurring Revenue (ARR) Growth

Net new ARR was $9 million, a 21% increase over Q3 of last year, and total ARR increased to $483 million, growing 10% year-over-year.

High Dollar-Based Net Retention Rate

The dollar-based net retention rate stood at 107%, indicating strong customer retention and expansion.

Successful New Product Adoption

AIOps, Automation, and Customer Service Ops contributed more than 40% to incremental ARR. Enterprises adopting multiple products saw a 253% ROI over 3 years.

Improved Gross Margin and Cash Flow

Gross margin was 86%. Cash from operations was $22 million, 19% of revenue, and free cash flow was $19 million, 16% of revenue.

Recognition and Industry Leadership

PagerDuty was recognized by Forrester and GigaOm for its leadership in AIOps, and Fortune recognized it as a top company for women.

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PagerDuty (PD) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

PD Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jun 06, 2019	2020 (Q1)	- / -0.22	-0.088	-150.00% (-0.13)	―	―
Sep 05, 2019	2020 (Q2)	- / -0.07	-0.168	58.33% (+0.10)	―	―
Dec 05, 2019	2020 (Q3)	- / -0.10	-0.205	51.22% (+0.10)	―	―
Mar 18, 2020	2020 (Q4)	- / -0.03	-0.045	33.33% (+0.01)	―	―
Jun 04, 2020	2021 (Q1)	- / -0.04	-0.22	81.82% (+0.18)	―	―
Sep 02, 2020	2021 (Q2)	- / -0.04	-0.07	42.86% (+0.03)	―	―
Dec 03, 2020	2021 (Q3)	- / -0.09	-0.1	10.00% (+0.01)	―	―
Mar 17, 2021	2021 (Q4)	-0.11 / -0.07	-0.03	-133.33% (-0.04)	―	―
Jun 03, 2021	2022 (Q1)	-0.09 / -0.08	-0.04	-100.00% (-0.04)	―	―
Sep 02, 2021	2022 (Q2)	-0.15 / -0.13	-0.04	-225.00% (-0.09)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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PD Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 26, 2024	$18.32	$17.83	-2.67%
Sep 03, 2024	$18.29	$18.08	-1.15%
May 30, 2024	$17.95	$18.97	+5.68%
Mar 14, 2024	$22.93	$21.25	-7.33%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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