Howard Wilson, Chief Financial Officer of PagerDuty, Inc. (NYSE:PD), has sold 21,066 shares of the company's common stock. The shares were sold on November 7 at a weighted average price of $20.02 per share, totaling approximately $421,741. This transaction was conducted under a 10b5-1 trading plan adopted by Wilson earlier in the year. Following the sale, Wilson retains direct ownership of 545,742 shares, with an additional 50 shares held indirectly by his spouse.
In other recent news, PagerDuty, a global leader in incident management solutions, reported a solid performance for the second quarter of fiscal year 2025. The company announced an 8% year-over-year revenue increase to $116 million and a non-GAAP operating margin of 17%. The enterprise segment showed significant growth, with a record number of multi-year agreements and a rise in high-value accounts. Despite challenges in the small and medium-sized business sector, PagerDuty anticipates exceeding a 10% annual recurring revenue (ARR) growth rate in fiscal year 2025.
The company also revealed that new products contributed to 65% of net new ARR. Looking ahead, PagerDuty expects Q3 revenue to range between $115.5 million and $117.5 million, indicating a growth rate of 6% to 8%. For the full fiscal year, the company projects a revenue range of $463 million to $467 million, with a growth rate of 7% to 8%.
However, the company experienced a decrease in total paid customers to 15,044, primarily due to losses in the SMB segment. Despite these challenges, PagerDuty remains focused on long-term growth and customer relations, with a strategic shift towards securing larger, multi-year contracts.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on PagerDuty's financial position and market performance. The company's market capitalization stands at $1.84 billion, reflecting its position in the tech sector. Despite the recent insider sale, PagerDuty has shown some positive market momentum, with a significant 7.59% return over the last week and an 11.71% return over the past month.
InvestingPro Tips highlight that PagerDuty holds more cash than debt on its balance sheet, indicating a strong liquidity position. This aligns with another tip noting that the company's liquid assets exceed short-term obligations, which could provide reassurance to investors in light of the CFO's stock sale.
However, it's worth noting that PagerDuty is not currently profitable over the last twelve months, with a negative P/E ratio of -22.27. Despite this, analysts predict the company will be profitable this year, suggesting potential for financial improvement.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for PagerDuty, providing a deeper understanding of the company's financial health and market position.
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