Earnings To Watch: PagerDuty (PD) Reports Q4 Results Tomorrow

IT incident response platform PagerDuty (NYSE:PD) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter PagerDuty reported revenues of $108.7 million, up 15.4% year on year, in line with analyst expectations. It was a mixed quarter for the company, with EPS and free cash flow exceeding estimates. On the other hand, its customer growth slowed, but at least the revenue coming in from existing customers was strong enough to let the company slightly beat Wall Street's expectations. The company lost 97 customers and ended up with a total of 15,049.

Is PagerDuty buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting PagerDuty's revenue to grow 9.3% year on year to $110.4 million, slowing down from the 28.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2%.

Looking at PagerDuty's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Datadog delivered top-line growth of 25.6% year on year, beating analyst estimates by 3.8% and Dynatrace reported revenues up 22.7% year on year, exceeding estimates by 2.1%. Datadog traded down 14.4% on the results, Dynatrace was down 14.9%.

Read our full analysis of Datadog's results here and Dynatrace's results here.

Investors in the software development segment have had steady hands going into the earnings, with the stocks up on average 0.9% over the last month. PagerDuty is down 0.9% during the same time, and is heading into the earnings with analyst price target of $27.3, compared to share price of $23.6.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.