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PagerDuty Inc (PD)
NYSE:PD
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PagerDuty (PD) AI Stock Analysis

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PD

PagerDuty

(NYSE:PD)

Rating:66Neutral
Price Target:
$17.50
▲(8.16% Upside)
PagerDuty's overall stock score of 66 reflects a mix of strong revenue and cash flow growth, offset by ongoing profitability challenges and valuation concerns. The company's technical indicators suggest cautious optimism, while the earnings call provided a balanced view of growth opportunities and operational challenges. The absence of corporate events further concentrates the focus on financial performance and earnings call insights.
Positive Factors
Customer Growth
The company managed to add 133 customers, resulting in one of the best quarters in nearly 3 years for customer growth.
Potential Acquisition
Analyst upgrades shares to Buy due to high likelihood of PD being acquired after a Reuters article.
Profit Performance
Improving profit performance is seen as an enduring positive aspect, with the potential to reach 25% operating margins annually within the next three years.
Negative Factors
Execution Challenges
PagerDuty is challenged by go-to-market execution issues and organizational transitions, affecting its top-line trends.
Performance Challenges
Key metrics such as ARR, NRR, and TTM billings trended in the wrong direction this quarter, indicating performance challenges.
Revenue Guidance
Revenue growth guidance for the full year was cut by nearly 2 percentage points, indicating a cautious outlook for future revenue.

PagerDuty (PD) vs. SPDR S&P 500 ETF (SPY)

PagerDuty Business Overview & Revenue Model

Company DescriptionPagerDuty, Inc. operates a digital operations management platform in the United States, Japan, and internationally. Its digital operations management platform collects data digital signals from virtually any software-enabled system or device, and leverage powerful machine learning to correlate, process, and predict opportunities and issues. It serves various industries, including software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services. PagerDuty, Inc. was founded in 2009 and is headquartered in San Francisco, California.
How the Company Makes MoneyPagerDuty generates revenue primarily through a subscription-based model, offering various pricing tiers for its platform based on features and usage levels. Key revenue streams include monthly and annual subscriptions from enterprise customers, who pay for access to the incident response and operational management capabilities. Additionally, PagerDuty has partnerships with major technology providers, such as AWS, Google Cloud, and Microsoft Azure, which help to enhance its service offerings and extend its market reach. The company also benefits from upselling and cross-selling opportunities as clients expand their usage of the platform across different teams and departments.

PagerDuty Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Sep 03, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive elements, such as strong revenue growth, strategic partnerships, and innovative product developments, alongside challenges in the enterprise segment, reduced revenue guidance, and macroeconomic uncertainties impacting customer behavior.
Q1-2026 Updates
Positive Updates
Strong Revenue and Operating Margin
PagerDuty delivered revenue of $120 million, representing 8% growth, and achieved a non-GAAP operating margin of 20%, exceeding their target by 500 basis points.
Significant Improvement in New Customer Acquisition
PagerDuty saw its largest increase in net new paid customers in eight quarters, driven by a new commercial digital acquisition strategy.
Strategic Partnerships and Expansions
Strengthened strategic partnership with AWS, serving nearly 6,000 joint customers, and public sector expansion with FedRAMP low authorization.
Innovative AI Product Developments
Launch of new AI solutions, including AI Scribe agent and plans for three additional AI agents this quarter, aimed at enhancing operational maturity and effectiveness.
Significant Enterprise Wins
Secured a 7-figure multiyear digital operations transformation deal with a global financial market infrastructure company.
Positive Cash Flow
Cash from operations was $31 million, or 26% of revenue, and free cash flow was $29 million, or 24% of revenue.
Negative Updates
Enterprise Segment Challenges
Dollar-based net retention was negatively impacted by customer downgrades and elevated churn in the enterprise segment.
Revenue Guidance Reduction
Full fiscal year 2026 revenue guidance was lowered to a range of $493 million to $499 million, down from the previous range of $500 million to $507 million.
Organizational Transitions Impact
Organizational transitions led to gaps in customer engagement and go-to-market execution challenges.
Macro Uncertainty Impact
Ongoing macroeconomic uncertainty and some anomalistic customer downgrades due to mergers and cautious spending.
Company Guidance
During the call, PagerDuty provided guidance and insights into their financial performance and strategic initiatives for fiscal year 2026. Revenue for the first quarter was reported at $120 million, marking an 8% growth year-over-year, while the annual recurring revenue reached $496 million, reflecting a 7% increase. The company achieved a non-GAAP operating margin of 20%, surpassing their target by 500 basis points, and a gross margin at the high end of 84% to 86%. Dollar-based net retention was noted at 104%, impacted by customer downgrades. For the second quarter, PagerDuty expects revenue between $122.5 million and $124.5 million, and a net income per diluted share of $0.19 to $0.20. The full fiscal year revenue is projected to be in the range of $493 million to $499 million, with net income per diluted share anticipated between $0.95 and $1. The company highlighted strategic investments in AI, partnerships with AWS, and a focus on improving sales and marketing execution to drive growth and profitability. With a strong balance sheet holding $597 million in cash and investments, PagerDuty remains positioned to execute on its priorities, including a $150 million share repurchase program.

PagerDuty Financial Statement Overview

Summary
PagerDuty is experiencing strong revenue and cash flow growth, indicating potential for future profitability. However, the company faces challenges with persistent net losses and reliance on debt, reflecting areas needing improvement.
Income Statement
75
Positive
PagerDuty has demonstrated strong revenue growth with a 10.54% increase from the previous year, indicative of a robust growth trajectory. The company's gross profit margin is high at 83.30% TTM, showcasing its efficient cost management in generating revenue. However, the net profit margin remains negative at -7.13% TTM, reflecting ongoing operational challenges and losses, although improving from previous periods. The EBIT margin of -10.15% and EBITDA margin of -3.05% TTM suggest that operational efficiencies need enhancement to achieve profitability.
Balance Sheet
68
Positive
The balance sheet reflects a moderate level of financial stability. PagerDuty's debt-to-equity ratio stands at 3.18, indicating reliance on debt but showing a manageable level of leverage typical for growth-oriented tech firms. The return on equity is negative at -23.30% TTM, due to the negative net income, highlighting profitability challenges. The equity ratio of 15.71% TTM suggests a lower proportion of equity financing, posing potential risks if revenue growth does not translate into profitability.
Cash Flow
82
Very Positive
PagerDuty displays strong cash flow performance with a free cash flow growth rate of 71.19% from the previous year, indicating effective cash generation. The operating cash flow to net income ratio is 3.53 TTM, highlighting substantial cash flow relative to net income and reflecting efficient operations. The free cash flow to net income ratio of 3.25 TTM further supports the company's ability to generate cash despite net losses, providing a cushion for future investments and debt obligations.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue467.50M430.70M370.79M281.40M213.56M
Gross Profit387.83M352.87M300.36M233.03M182.87M
EBITDA-14.52M-52.80M-107.20M-93.36M-57.57M
Net Income-42.73M-81.76M-129.22M-107.45M-68.90M
Balance Sheet
Total Assets927.27M925.31M817.87M806.45M795.44M
Cash, Cash Equivalents and Short-Term Investments570.83M571.19M476.97M543.36M560.28M
Total Debt463.65M461.02M301.52M307.62M249.33M
Total Liabilities779.22M746.41M575.79M539.47M428.72M
Stockholders Equity129.83M171.60M240.98M266.98M366.73M
Cash Flow
Free Cash Flow108.41M64.43M8.51M-12.83M5.25M
Operating Cash Flow117.89M71.97M16.98M-6.02M10.10M
Investing Cash Flow-19.97M-30.52M-86.17M17.38M-49.32M
Financing Cash Flow-116.14M51.60M-6.41M-736.00K254.37M

PagerDuty Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.18
Price Trends
50DMA
15.41
Positive
100DMA
15.51
Positive
200DMA
17.20
Negative
Market Momentum
MACD
0.22
Negative
RSI
54.34
Neutral
STOCH
71.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PD, the sentiment is Positive. The current price of 16.18 is above the 20-day moving average (MA) of 15.89, above the 50-day MA of 15.41, and below the 200-day MA of 17.20, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 71.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PD.

PagerDuty Risk Analysis

PagerDuty disclosed 68 risk factors in its most recent earnings report. PagerDuty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

PagerDuty Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$2.39B35.1214.27%1.30%3.08%-1.02%
71
Outperform
$2.23B20.9817.50%6.75%97.06%
66
Neutral
$1.49B-23.09%8.55%60.23%
63
Neutral
$1.47B-5.41%5.96%50.29%
62
Neutral
$850.52M-32.50%14.79%27.52%
62
Neutral
$1.15B-6.68%11.36%46.67%
61
Neutral
$35.62B8.22-10.94%1.88%8.86%-10.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PD
PagerDuty
16.18
-3.28
-16.86%
SPNS
Sapiens
42.81
8.01
23.02%
SPT
Sprout Social
15.24
-15.93
-51.11%
JAMF
Jamf Holding
8.69
-9.65
-52.62%
CXM
Sprinklr
8.37
-0.49
-5.53%
MLNK
MeridianLink
19.85
-2.73
-12.09%

PagerDuty Corporate Events

Executive/Board Changes
PagerDuty Appoints Paul Underwood as Accounting Officer
Neutral
Jul 28, 2025

On July 25, 2025, PagerDuty, Inc. appointed Paul Underwood as the company’s principal accounting officer, a role previously held by Howard Wilson, who remains the Chief Financial Officer. Underwood, who joined PagerDuty as Chief Accounting Officer in April 2025, brings extensive experience from his previous roles at Cloudflare and Autodesk, enhancing the company’s financial leadership team.

Shareholder MeetingsBusiness Operations and Strategy
PagerDuty Holds 2025 Annual Stockholders Meeting
Neutral
Jun 30, 2025

On June 26, 2025, PagerDuty held its 2025 Annual Meeting of Stockholders, where three proposals were voted on. The stockholders elected three Class III directors, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor, and approved the executive compensation on an advisory basis. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025