NEW YORK - PagerDuty, Inc. (NYSE: NYSE:PD) saw its shares jump nearly 5% after the company reported better-than-expected third-quarter earnings and raised its full-year outlook.
The digital operations management platform provider beat analyst estimates on both the top and bottom lines, driven by solid revenue growth and improved profitability.
For the third quarter ended October 31, 2024, PagerDuty reported adjusted earnings per share of $0.25, surpassing the analyst consensus of $0.17 by $0.08. Revenue came in at $118.9 million, up 9.4% YoY and above the $116.56 million estimate.
The company's annual recurring revenue increased 10% YoY to $483 million. PagerDuty's customer base with annual recurring revenue over $100,000 grew 6% to 825, while its total paid customers remained relatively flat at 15,050 compared to a year ago.
"PagerDuty delivered a solid quarter with revenue and non-GAAP operating income results well above third quarter guidance ranges," said Chairperson and CEO Jennifer Tejada. "Consistent performance over the past four quarters has led to stabilization across all business segments, and along with improving leading indicators, positions the business on a strong upward trajectory."
Looking ahead, PagerDuty raised its full-year fiscal 2025 guidance. The company now expects total revenue of $464.5 million to $466.5 million, up from its previous forecast of $463.0 million to $467.0 million. It also increased its adjusted EPS outlook to $0.78 to $0.79, up from $0.67 to $0.72 previously.
For the fourth quarter, PagerDuty projects revenue between $118.5 million and $120.5 million, slightly below the $121.6 million analyst consensus. The company forecasts Q4 adjusted EPS of $0.15 to $0.16, in line with estimates.
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