The slowdown in PagerDuty's revenue growth is attributed to macroeconomic conditions, not structural issues. PD's strategic pivot to focus on enterprise accounts is promising, with strong execution evident in growing large accounts and stable ARR growth. Valuation is attractive, with potential for significant upside as revenue growth accelerates, potentially reaching a share price of ~$33, representing ~76% upside.
PagerDuty (PD) witnesses a hammer chart pattern, indicating support found by the stock after losing some value lately. This coupled with an upward trend in earnings estimate revisions could mean a trend reversal for the stock in the near term.
PagerDuty (PD) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
PD's second-quarter fiscal 2025 results benefit from an expanding customer base. However, weak top-line guidance negatively impacts share price.
Two cloud-related stocks are putting pressure on the sector today.
U.S. stock futures were lower this morning, with the Nasdaq futures dipping over 100 points on Wednesday.
PagerDuty's Q2 FY25 earnings report shows stabilization in customer metrics and revenue, leading to an upgrade from Sell to Hold. The company reported a 7.8% y/y revenue increase to $116 million, with ARR growing 10% y/y, indicating potential growth in H2 FY25. Management's cost control measures improved operating margins by 400 basis points, with adjusted operating margins reaching 17.3% in Q2.
PagerDuty, Inc. (NYSE:PD ) Q2 2025 Earnings Conference Call September 3, 2024 5:00 PM ET Company Participants Tony Righetti - VP, IR Jennifer Tejada - CEO Howard Wilson - CFO Conference Call Participants Sanjit Singh - Morgan Stanley Koji Ikeda - Bank of America Securities Jacob Roberge - William Blair Andrew Sherman - TD Cowen Jeff Van Rhee - Craig Hallum Kingsley Crane - Canaccord Genuity John Gomez - Scotiabank Operator Good afternoon, folks. Sorry for the delay.
PagerDuty (PD) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.19 per share a year ago.
The CFO says deals could take longer to close and smaller businesses are still “a headwind to growth.”
PagerDuty has significantly underperformed the market, with shares down over 42% in the past five years. Recent quarters have shown slowing revenue growth rates, with pressure on management to deliver an acceleration in coming periods. Ark Invest's significant ownership in PagerDuty could put additional pressure on shares if Cathie Wood decides to start selling.
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