PagerDuty Earnings: What To Look For From PD

IT incident response platform PagerDuty (NYSE:PD) will be announcing earnings results tomorrow after the bell. Here’s what to look for.

PagerDuty met analysts’ revenue expectations last quarter, reporting revenues of $111.2 million, up 7.7% year on year. It was a solid quarter for the company, with accelerating customer growth and a decent beat of analysts’ billings estimates. It added 81 customers to reach a total of 15,120.

Is PagerDuty a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting PagerDuty’s revenue to grow 8.2% year on year to $116.5 million, slowing from the 19.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PagerDuty has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.

Looking at PagerDuty’s peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Datadog delivered year-on-year revenue growth of 26.7%, beating analysts’ expectations by 3.2%, and Dynatrace reported revenues up 19.9%, topping estimates by 1.8%. Datadog traded up 3.9% following the results while Dynatrace was also up 16.8%.

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

There has been positive sentiment among investors in the software development segment, with share prices up 10.2% on average over the last month. PagerDuty is up 5.7% during the same time and is heading into earnings with an average analyst price target of $25.5 (compared to the current share price of $19.78).

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