PagerDuty Announces Second Quarter Fiscal 2023 Financial Results

Rhea-AI Summary

PagerDuty, Inc. (NYSE:PD) announced a 34% revenue increase in Q2 fiscal 2023, reaching $90.3 million. Despite strong sales, the company reported a GAAP operating loss of $37.9 million and a non-GAAP operating loss of $3.4 million. The total paid customer base rose to 15,174, while annual recurring revenue customers grew to 689. PagerDuty forecasts Q3 revenue between $92 million and $94 million, with a projected full-year revenue of $365 million to $370 million. The company remains focused on profitability amidst a challenging macro environment.

Positive

• 34% revenue growth year-over-year to $90.3 million.
• Increase in paid customers to 15,174 from 14,169 year-over-year.
• Total revenue forecast for FY2023 of $365 million to $370 million, indicating a growth rate of 30% - 31%.

Negative

• GAAP operating loss of $37.9 million, translating to a negative operating margin of 42.0%.
• Non-GAAP operating loss of $3.4 million, with a negative operating margin of 3.7%.
• Decline in dollar-based net retention rate to 124% from 126% year-over-year.

Second quarter revenue increased 34% year over year to $90.3 million

Second quarter GAAP operating loss of $37.9 million, non-GAAP operating loss of $3.4 million

SAN FRANCISCO--(BUSINESS WIRE)-- PagerDuty, Inc. (NYSE:PD), a leader in digital operations management, today announced financial results for the second quarter of fiscal 2023, ended July 31, 2022.

“In the second quarter, we again exceeded our guidance ranges while extending our lead through innovations across PagerDuty's Operations Cloud,” said Jennifer Tejada, Chairperson and CEO at PagerDuty. “We continued to see strong demand across regions and verticals, where our immediate, high ROI is welcome by customers seeking to improve productivity and efficiency. As essential infrastructure for modern enterprises, trusted by developers and leadership alike to orchestrate and drive digital acceleration, cloud adoption, and DevOps transformation, we are especially well positioned in an uncertain macro environment. We remain confident in our ability to continue to execute well as we progress towards profitability.”

Second Quarter Fiscal 2023 Financial Highlights

• Revenue was $90.3 million, an increase of 33.6% year over year.
• GAAP operating loss was $37.9 million; GAAP operating margin of negative 42.0%.
• Non-GAAP operating loss was $3.4 million; non-GAAP operating margin of negative 3.7%.
• GAAP net loss per share attributable to PagerDuty, Inc. was $0.44; non-GAAP net loss per share attributable to PagerDuty, Inc. was $0.04.
• Operating cash flow was $2.8 million, with free cash flow of $1.0 million.
• Cash, cash equivalents and current investments were $470.8 million as of July 31, 2022.

The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between historical GAAP and non-GAAP information.

Second Quarter and Recent Highlights

• Total paid customers of 15,174 as of July 31, 2022, compared to 14,169 in the year ago period.
• Customers with annual recurring revenue over $100,000 was 689 as of July 31, 2022, compared to 501 in the year ago period.
• Dollar-based net retention rate of 124% as of July 31, 2022, compared to 126% in the year ago period.
• International revenue was 23% of total revenue as of July 31, 2022, compared to 24% in the year ago period.
• Held 2022 Global Summit Series.
• Expanded international presence to Japan.
• Appointed Bill Losch to Board of Directors.
• Featured case study: Freedom Pay.
• Lands and Expands include: Booking Holdings, Lumen Technologies, Public Storage, Toyota and Zoom

Financial Outlook

For the third quarter of fiscal 2023, PagerDuty currently expects:

• Total revenue of $92.0 million - $94.0 million, representing a growth rate of 28% - 31% year over year
• Non-GAAP net loss per share attributable to PagerDuty, Inc. of $0.04 - $0.03 assuming approximately 89 million shares

For the full fiscal year 2023, PagerDuty currently expects:

• Total revenue of $365.0 million - $370.0 million, representing a growth rate of 30% - 31% year over year
• Non-GAAP net loss per share attributable to PagerDuty, Inc. of $0.12 - $0.10 assuming approximately 89 million shares

These statements are forward-looking and actual results may differ materially. Please refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

PagerDuty has not reconciled its expectations as to non-GAAP net loss per share attributable to PagerDuty, Inc. to GAAP net loss per share attributable to PagerDuty, Inc. because certain items are out of its control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP net loss per share attributable to PagerDuty, Inc. is not available without unreasonable effort.

Conference Call Information:

PagerDuty will host a conference call and live webcast for analysts and investors at 2:00 p.m. Pacific Time on September 1, 2022. This news release with the financial results will be accessible from PagerDuty’s website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com.

Supplemental Financial and Other Information:

Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s LinkedIn account (https://www.linkedin.com/company/482819), Twitter account (twitter.com/pagerduty), the Twitter account @jenntejada and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts.

Non-GAAP Financial Measures:

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss attributable to PagerDuty, Inc., non-GAAP net loss per share attributable to PagerDuty, Inc., and free cash flow.

PagerDuty believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and can assist in comparisons with other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in PagerDuty’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by PagerDuty’s management about which expenses and income are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP.

Specifically, PagerDuty excludes the following from its historical and prospective non-GAAP financial measures, as applicable:

Stock-based Compensation: PagerDuty utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Employer Taxes Related to Employee Stock Transactions: PagerDuty views the amount of employer taxes related to its employee stock transactions as an expense that is dependent on its stock price, employee exercise and other award disposition activity, and other factors that are beyond PagerDuty’s control. As a result, employer taxes related to employee stock transactions vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of Acquired Intangible Assets: PagerDuty views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.

Acquisition-Related Expenses: PagerDuty views acquisition-related expenses, such as transaction costs, acquisition-related retention payments, and acquisition-related asset impairment, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

Amortization of Debt Issuance Costs: The imputed interest rate of the Convertible Senior Notes (the "Notes") was approximately 1.93%. This is a result of the debt issuance costs, which reduce the carrying value of the convertible debt instruments. The debt issuance costs are amortized as interest expense. The expense for the amortization of the debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

Acquisition-Related Income Tax Benefit: PagerDuty views acquisition-related income tax benefits as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such benefits can assist in the comparison of operational performance in different periods which may or may not include such benefits.

PagerDuty defines non-GAAP operating loss as GAAP loss from operations excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, and acquisition-related expenses. PagerDuty defines non-GAAP net loss attributable to PagerDuty, Inc. (which is used in calculating non-GAAP net loss per share attributable to PagerDuty, Inc.) as GAAP net loss attributable to PagerDuty, Inc. excluding amortization of debt issuance costs and debt discount, stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, and acquisition-related income tax benefits. There are a number of limitations related to the use of these non-GAAP measures as compared to GAAP operating loss and net loss, including that the non-GAAP measures exclude stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in PagerDuty’s business and an important part of its compensation strategy.

PagerDuty defines free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property and equipment and capitalized internal-use software. In addition to the reasons stated above, PagerDuty believes that free cash flow is useful to investors as a liquidity measure because it measures PagerDuty’s ability to generate or use cash in excess of its capital investments in property and equipment to strengthen its balance sheet and further invest in its business and potential strategic initiatives. PagerDuty uses free cash flow in conjunction with traditional GAAP measures as part of its overall assessment of its liquidity, including the preparation of PagerDuty’s annual operating budget and quarterly forecasts, to evaluate the effectiveness of its business strategies, and to assess its liquidity.

There are a number of limitations related to the use of free cash flow as compared to net cash provided by (used in) operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.

PagerDuty encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate PagerDuty’s business.

Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial performance and outlook and market positioning. Words such as “expect,” “extend,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “accelerate,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 17, 2022. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2022 and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the effect of uncertainties related to the COVID-19 pandemic on U.S. and global markets, our business, operations, revenue results, cash flow, operating expenses, demand for our solutions, sales cycles, customer retention and our customers’ businesses; our ability to achieve and maintain future profitability; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our ability to sustain and manage our growth; our dependence on revenue from a single product; our ability to compete effectively in an increasingly competitive market; and general global market, political, economic, and business conditions.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

About PagerDuty

PagerDuty, Inc. (NYSE:PD) is a leader in digital operations management. In an always-on world, organizations of all sizes trust PagerDuty to help them deliver a perfect digital experience to their customers, every time. Teams use PagerDuty to identify issues and opportunities in real time and bring together the right people to fix problems faster and prevent them in the future. Notable customers include Cisco, DocuSign, DoorDash, Electronic Arts, Genentech, Shopify, Zoom and more. To learn more and try PagerDuty for free, visit www.pagerduty.com. Follow our blog and connect with us on Twitter, LinkedIn, YouTube and Facebook. We’re also hiring, visit https://www.pagerduty.com/careers/ to learn more.

PagerDuty, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited)
	Three Months Ended July 31,								Six Months Ended July 31,
	2022				2021				2022				2021
Revenue	$	90,253			$	67,536			$	175,624			$	131,127
Cost of revenue(1)		18,367				11,976				34,083				22,394
Gross profit		71,886				55,560				141,541				108,733
Operating expenses:
Research and development(1)		34,014				22,909				65,303				43,508
Sales and marketing(1)		50,331				40,814				95,883				78,048
General and administrative(1)		25,429				20,294				50,700				36,872
Total operating expenses		109,774				84,017				211,886				158,428
Loss from operations		(37,888	)			(28,457	)			(70,345	)			(49,695	)
Interest income		830				783				1,378				1,601
Interest expense		(1,387	)			(1,378	)			(2,712	)			(2,695	)
Other expense, net		(364	)			(586	)			(1,154	)			(1,202	)
Loss before benefit from (provision for) income taxes		(38,809	)			(29,638	)			(72,833	)			(51,991	)
Benefit from (provision for) income taxes		210				(23	)			1,414				(228	)
Net loss	$	(38,599	)		$	(29,661	)		$	(71,419	)		$	(52,219	)
Net loss attributable to redeemable non-controlling interest		(100	)			—				(100	)			—
Net loss attributable to PagerDuty, Inc.	$	(38,499	)		$	(29,661	)		$	(71,319	)		$	(52,219	)
Net loss per share, basic and diluted, attributable to PagerDuty, Inc.	$	(0.44	)		$	(0.35	)		$	(0.81	)		$	(0.63	)
Weighted-average shares used in calculating net loss per share, basic and diluted		88,153				83,895				87,648				83,413

(1) Includes stock-based compensation expense as follows:

	Three Months Ended July 31,						Six Months Ended July 31,
		2022			2021			2022			2021
Cost of revenue	$	1,787		$	1,023		$	3,011		$	1,699
Research and development		10,567			5,607			19,242			10,047
Sales and marketing		8,148			4,401			14,529			8,355
General and administrative		9,623			5,445			18,252			9,987
Total	$	30,125		$	16,476		$	55,034		$	30,088

PagerDuty, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited)
	As of July 31, 2022				As of January 31, 2022
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	278,331			$	349,785
Investments		192,464				193,571
Accounts receivable, net of allowance for credit losses of $1,727 and $1,809 as of July 31, 2022 and January 31, 2022, respectively		59,305				75,279
Deferred contract costs, current		17,397				16,672
Prepaid expenses and other current assets		12,087				9,777
Total current assets		559,584				645,084
Property and equipment, net		18,502				18,229
Deferred contract costs, non-current		26,211				26,159
Lease right-of-use assets		17,925				20,227
Goodwill		118,862				72,126
Intangible assets, net		42,658				23,133
Other assets		1,021				1,490
Total assets	$	784,763			$	806,448
Liabilities, redeemable non-controlling interest, and stockholders’ equity
Current liabilities:
Accounts payable	$	6,600			$	9,505
Accrued expenses and other current liabilities		18,268				13,640
Accrued compensation		28,857				35,327
Deferred revenue, current		166,501				162,881
Lease liabilities, current		5,838				5,637
Total current liabilities		226,064				226,990
Convertible senior notes, net		281,984				281,069
Deferred revenue, non-current		3,033				7,343
Lease liabilities, non-current		17,928				20,912
Other liabilities		3,671				3,159
Total liabilities		532,680				539,473
Redeemable non-controlling interest		1,811				—
Stockholders’ equity:
Common stock		—				—
Additional paid-in-capital		672,126				616,467
Accumulated other comprehensive loss		(1,712	)			(669	)
Accumulated deficit		(420,142	)			(348,823	)
Total stockholders’ equity		250,272				266,975
Total liabilities, redeemable non-controlling interest, and stockholders’ equity	$	784,763			$	806,448

PagerDuty, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
	Three Months Ended July 31,								Six Months Ended July 31,
	2022				2021				2022				2021
Cash flows from operating activities
Net loss attributable to PagerDuty, Inc.	$	(38,499	)		$	(29,661	)		$	(71,319	)		$	(52,219	)
Net loss attributable to redeemable non-controlling interest		(100	)			—				(100	)			—
Net loss		(38,599	)			(29,661	)			(71,419	)			(52,219	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		4,689				2,055				8,280				4,027
Amortization of deferred contract costs		4,791				3,562				9,256				6,812
Amortization of debt issuance costs		468				460				915				898
Stock-based compensation		30,125				16,476				55,034				30,088
Non-cash lease expense		1,157				1,112				2,302				2,209
Tax benefit related to release of valuation allowance		—				—				(1,330	)			—
Other		56				892				1,810				1,695
Changes in operating assets and liabilities:
Accounts receivable		1,259				(10,892	)			16,521				6,473
Deferred contract costs		(5,035	)			(5,753	)			(10,033	)			(9,485	)
Prepaid expenses and other assets		481				(1,189	)			(1,510	)			(2,762	)
Accounts payable		(2,283	)			2,743				(2,226	)			1,179
Accrued expenses and other liabilities		3,877				1,441				3,243				3,373
Accrued compensation		1,020				581				(6,658	)			(3,830	)
Deferred revenue		2,225				7,946				(1,546	)			4,030
Lease liabilities		(1,390	)			(1,368	)			(2,783	)			(2,504	)
Net cash provided by (used in) operating activities		2,841				(11,595	)			(144	)			(10,016	)
Cash flows from investing activities
Purchases of property and equipment		(862	)			(364	)			(2,940	)			(1,291	)
Capitalization of internal-use software costs		(965	)			(915	)			(1,737	)			(1,917	)
Business acquisition, net of cash acquired		—				—				(66,262	)			(160	)
Asset acquisition		(1,845	)			—				(1,845	)			—
Purchases of available-for-sale investments		(53,783	)			(38,572	)			(95,468	)			(116,103	)
Proceeds from maturities of available-for-sale investments		54,760				49,146				95,200				116,150
Proceeds from sales of available-for-sale investments		—				27,380				—				27,380
Net cash (used in) provided by investing activities		(2,695	)			36,675				(73,052	)			24,059
Cash flows from financing activities
Investment from redeemable non-controlling interest holder		1,908				—				1,908				—
Proceeds from employee stock purchase plan		5,736				4,889				5,736				4,889
Proceeds from issuance of common stock upon exercise of stock options		2,974				4,596				6,560				7,430
Employee payroll taxes paid related to net share settlement of restricted stock units		(6,153	)			(6,073	)			(12,323	)			(11,003	)
Net cash provided by financing activities		4,465				3,412				1,881				1,316
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash		(139	)			—				(139	)			—
Net increase (decrease) in cash, cash equivalents, and restricted cash		4,472				28,492				(71,454	)			15,359
Cash, cash equivalents, and restricted cash at beginning of period		273,859				326,033				349,785				339,166
Cash, cash equivalents, and restricted cash at end of period	$	278,331			$	354,525			$	278,331			$	354,525

PagerDuty, Inc. Reconciliation of GAAP to Non-GAAP Data (in thousands, except percentages and per share data) (unaudited)
	Three Months Ended July 31,								Six Months Ended July 31,
	2022				2021				2022				2021
Reconciliation of gross profit and gross margin
GAAP gross profit	$	71,886			$	55,560			$	141,541			$	108,733
Plus: Stock-based compensation		1,787				1,023				3,011				1,699
Plus: Employer taxes related to employee stock transactions		34				30				41				56
Plus: Amortization of acquired intangible assets		2,156				280				3,365				560
Non-GAAP gross profit	$	75,863			$	56,893			$	147,958			$	111,048
GAAP gross margin		79.6	%			82.3	%			80.6	%			82.9	%
Non-GAAP adjustments		4.5	%			1.9	%			3.6	%			1.8	%
Non-GAAP gross margin		84.1	%			84.2	%			84.2	%			84.7	%
Reconciliation of operating expenses
GAAP research and development	$	34,014			$	22,909			$	65,303			$	43,508
Less: Stock-based compensation		(10,567	)			(5,607	)			(19,242	)			(10,047	)
Less: Employer taxes related to employee stock transactions		(176	)			(208	)			(357	)			(406	)
Less: Acquisition-related expenses		(891	)			(457	)			(2,362	)			(906	)
Less: Amortization of acquired intangible assets		(116	)			—				(116	)			—
Non-GAAP research and development	$	22,264			$	16,637			$	43,226			$	32,149
GAAP sales and marketing	$	50,331			$	40,814			$	95,883			$	78,048
Less: Stock-based compensation		(8,148	)			(4,401	)			(14,529	)			(8,355	)
Less: Employer taxes related to employee stock transactions		(145	)			(157	)			(320	)			(358	)
Less: Amortization of acquired intangible assets		(660	)			(595	)			(1,293	)			(1,190	)
Non-GAAP sales and marketing	$	41,378			$	35,661			$	79,741			$	68,145
GAAP general and administrative	$	25,429			$	20,294			$	50,700			$	36,872
Less: Stock-based compensation		(9,623	)			(5,445	)			(18,252	)			(9,987	)
Less: Employer taxes related to employee stock transactions		(166	)			(315	)			(455	)			(571	)
Less: Acquisition-related expenses		(8	)			2				(1,290	)			(8	)
Less: Amortization of acquired intangible assets		(29	)			—				(29	)			—
Non-GAAP general and administrative	$	15,603			$	14,536			$	30,674			$	26,306

Note: Certain figures may not sum due to rounding.

PagerDuty, Inc. Reconciliation of GAAP to Non-GAAP Data (in thousands, except percentages and per share data) (unaudited)
	Three Months Ended July 31,								Six Months Ended July 31,
	2022				2021				2022				2021
Reconciliation of operating loss and operating margin
GAAP operating loss	$	(37,888	)		$	(28,457	)		$	(70,345	)		$	(49,695	)
Plus: Stock-based compensation		30,125				16,476				55,034				30,088
Plus: Employer taxes related to employee stock transactions		521				710				1,173				1,391
Plus: Amortization of acquired intangible assets		2,961				875				4,803				1,750
Plus: Acquisition-related expenses		899				455				3,652				914
Non-GAAP operating loss	$	(3,382	)		$	(9,941	)		$	(5,683	)		$	(15,552	)
GAAP operating margin		(42.0	) %			(42.1	) %			(40.1	) %			(37.9	) %
Non-GAAP adjustments		38.3	%			27.4	%			36.9	%			26.0	%
Non-GAAP operating margin		(3.7	) %			(14.7	) %			(3.2	) %			(11.9	) %
Reconciliation of net loss
GAAP net loss attributable to PagerDuty, Inc.	$	(38,499	)		$	(29,661	)		$	(71,319	)		$	(52,219	)
Plus: Stock-based compensation		30,125				16,476				55,034				30,088
Plus: Employer taxes related to employee stock transactions		521				710				1,173				1,391
Plus: Amortization of debt discount		468				460				915				898
Plus: Amortization of acquired intangible assets		2,961				875				4,803				1,750
Plus: Acquisition-related expenses		899				455				3,652				914
Less: Tax benefit associated with acquisition		—				—				(1,330	)			—
Non-GAAP net loss attributable to PagerDuty, Inc.	$	(3,525	)		$	(10,685	)		$	(7,072	)		$	(17,178	)
Reconciliation of net loss per share, basic and diluted
GAAP net loss per share, basic and diluted, attributable to PagerDuty, Inc.	$	(0.44	)		$	(0.35	)		$	(0.81	)		$	(0.63	)
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc.		0.40				0.23				0.73				0.42
Non-GAAP net loss per share, basic and diluted, attributable to PagerDuty, Inc.	$	(0.04	)		$	(0.13	)		$	(0.08	)		$	(0.21	)
Weighted-average shares used in calculating net loss per share, basic and diluted		88,153				83,895				87,648				83,413

Note: Certain figures may not sum due to rounding.

PagerDuty, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except percentages and per share data) (unaudited)
Free Cash Flow
	Three Months Ended July 31,								Six Months Ended July 31,
	2022				2021				2022				2021
Net cash provided by (used in) operating activities	$	2,841			$	(11,595	)		$	(144	)		$	(10,016	)
Less:
Purchases of property and equipment		(862	)			(364	)			(2,940	)			(1,291	)
Capitalization of internal-use software costs		(965	)			(915	)			(1,737	)			(1,917	)
Free cash flow	$	1,014			$	(12,874	)		$	(4,821	)		$	(13,224	)
Net cash (used in) provided by investing activities	$	(2,695	)		$	36,675			$	(73,052	)		$	24,059
Net cash provided by financing activities	$	4,465			$	3,412			$	1,881			$	1,316
Free cash flow margin		1.1	%			(19.1	) %			(2.7	) %			(10.1	) %

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220901005765/en/

Investor Relations Contact:

Tony Righetti

investor@pagerduty.com

SOURCE PagerDuty 

Source: PagerDuty, Inc.

FAQ

What were PagerDuty's Q2 FY2023 revenue results?

PagerDuty reported a Q2 FY2023 revenue of $90.3 million, a 34% increase year-over-year.

What is PagerDuty's guidance for Q3 FY2023?

PagerDuty expects Q3 FY2023 revenue between $92 million and $94 million.

How did PagerDuty's paid customer numbers change in Q2 FY2023?

PagerDuty's paid customer base increased to 15,174 in Q2 FY2023, up from 14,169.

What are the expectations for PagerDuty's full FY2023 revenue?

For FY2023, PagerDuty forecasts total revenue between $365 million and $370 million.