On November 30, 2023, PagerDuty Inc (PD, Financial) released its 8-K filing, announcing its financial results for the third quarter of fiscal 2024, which ended on October 31, 2023. The company reported a 15% increase in revenue year-over-year, reaching $108.7 million, surpassing its own guidance ranges. Despite a GAAP operating loss of $20.8 million, the company achieved a non-GAAP operating income of $15.0 million, reflecting a non-GAAP operating margin of 13.8%.
Financial Performance Overview
PagerDuty Inc (PD, Financial) experienced a GAAP net loss per share attributable to common stockholders of $0.16. However, on a non-GAAP basis, the company reported a net income per diluted share of $0.20. The company's operating cash flow was strong at $16.9 million, with free cash flow of $15.2 million. As of October 31, 2023, PagerDuty Inc (PD) maintained a robust balance sheet with $575.3 million in cash, cash equivalents, and current investments.
Operational and Strategic Highlights
PagerDuty Inc (PD, Financial) continued to grow its annual recurring revenue by 13% year-over-year to $438.9 million. The company also reported an increase in customers with annual recurring revenue over $100,000, growing 10% to 778. However, the dollar-based net retention rate saw a decline from 123% in the previous year to 110%. The total number of free and paid customers grew by approximately 18% year-over-year, reaching more than 27,000, although there was a slight decrease in total paid customers from the previous year.
In terms of product innovation and corporate developments, PagerDuty Inc (PD, Financial) highlighted the acquisition of Jeli, Inc. and the appointment of Eric Johnson as Chief Information Officer. The company also launched new capabilities across the PagerDuty Operations Cloud and was recognized as a leader in GigaOm’s 2023 Incident Response Platforms Radar evaluation.
Financial Outlook
Looking ahead to the fourth quarter of fiscal 2024, PagerDuty Inc (PD, Financial) expects total revenue to be between $109.5 million and $111.5 million, representing a growth rate of 8% to 10% year-over-year. The company also anticipates non-GAAP net income per diluted share to be in the range of $0.14 to $0.15, assuming approximately 95 million diluted shares.
For the full fiscal year 2024, the company projects total revenue to be between $429.0 million and $431.0 million, which would represent a 16% growth year-over-year. Non-GAAP net income per diluted share is expected to be between $0.72 and $0.73, assuming approximately 101 million diluted shares.
Reconciliation of GAAP to Non-GAAP Financial Measures
PagerDuty Inc (PD, Financial) provided a detailed reconciliation of GAAP to non-GAAP financial measures, adjusting for items such as stock-based compensation, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, and restructuring costs. These non-GAAP measures are intended to provide additional insight into the company's underlying financial performance.
In summary, PagerDuty Inc (PD, Financial) delivered a solid financial performance in the third quarter of fiscal 2024, with significant revenue growth and non-GAAP profitability. The company's strategic initiatives and product enhancements continue to drive its market position, despite a challenging economic environment. Investors and stakeholders can look forward to PagerDuty Inc (PD)'s sustained efforts to innovate and grow in the upcoming quarters.
Explore the complete 8-K earnings release (here) from PagerDuty Inc for further details.
