Forecasts - Revenue Surges 33%
June 8, 2020
PagerDuty reported financial results
for the first quarter of fiscal 2021 ended April 30, 2020. PagerDuty
noted a quarterly loss of $0.04 per share versus the expected loss of
$0.09. Looking at the last four quarters, the firm topped EPS estimates
three times. PagerDuty had revenues of $49.79 million with only $48.33
“PagerDuty is pleased to report a
strong start to the fiscal year, with a 33% year-on-year revenue
increase to $49.8 million for the quarter, demonstrating the continued
trust our customers place in the PagerDuty platform. We believe that
PagerDuty is uniquely positioned to be a trusted partner in this
environment. Our cloud-native platform is designed to enable proactive
response capabilities to prevent outages, and gain predictive insights
so our customers can automate repetitive work and improve collaboration
across virtual teams,” said Jennifer Tejada, CEO at PagerDuty.
Quarter Fiscal 2021 Financial Highlights
Total revenue was $49.8 million, up 33% year-over-year.
Margin: GAAP gross margin was 86.0%. Non-GAAP gross
margin was 86.7% compared to non-GAAP gross margin of 85.7% in
the first quarter of fiscal 2020.
Operating Loss: GAAP operating loss was $12.6 million,
or GAAP operating margin of negative 25.3%, compared to a $12.7
million GAAP loss, or GAAP operating margin of negative 34.1%,
in the first quarter of fiscal 2020. Non-GAAP operating loss was
$4.3 million, or non-GAAP operating margin of negative 8.6%,
compared to a $7.9 million non-GAAP loss, or non-GAAP operating
margin of negative 21.2%, in the first quarter of fiscal 2020.
Loss: GAAP net loss was $11.5 million, compared to
$12.1 million in the first quarter of fiscal 2020. GAAP net loss
per share was $0.15, compared to $0.37 in the first quarter of
fiscal 2020. Non-GAAP net loss was $3.2 million, compared to
$7.3 million in the first quarter of fiscal 2020. Non-GAAP net
loss per share was $0.04, compared to $0.22 in the first quarter
of fiscal 2020.
Flow: Net cash used in operations was $0.2 million, or
0.4% of revenue, compared to net cash used in operations of $7.6
million, or 20.3% of revenue, in the first quarter of fiscal
2020. Free cash flow was negative $2.9 million, or 5.8% of
revenue, compared to negative $8.8 million, or 23.5% of revenue,
in the first quarter of fiscal 2020.
- Cash and
Cash Equivalents and Current Investments were $350.8
million as of April 30, 2020.
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.
Leadership team bolstered: We recently hired Manjula
Talreja as our Chief Customer Officer. We also added several new
go to market leaders.
Growth: PagerDuty had 13,060 customers as of April 30,
2020. New and expansion customers include LabCorp, Toyota Motor
North America, NBCUniversal, SlingTV, Nextdoor Inc., Nvidia,
CHANEL, Domino’s Pizza, PGA Tour, Crocs, TD Bank and Sephora.
Innovation: We recently announced new automation and
intelligence capabilities in Dynamic Service Directory, Business
Response and Intelligent Triage solutions, to help teams reduce
manual work, prevent outages and improve remote collaboration.
These advances in our platform are designed to equip teams with
proactive response capabilities to prevent outages, and gain
predictive insights so they can automate repetitive work and
improve collaboration across virtual teams. The general release
of Intelligent Triage, now available on mobile, advances
PagerDuty’s AIOps solution, Event Intelligence, by providing new
automation and intelligence to eliminate repetitive manual
tasks. Service Directory gives developer teams access to a
central knowledge base that’s always up-to-date, and clearly
shows owners and experts for each service and their associated
run books. Our Business Response capability, now has a new
mobile status dashboard. This functionality allows remote teams
to collaborate effectively when incidents arise.
Expansion: PagerDuty customers can now use the
Microsoft Teams integration to drive real-time operations across
their organization. PagerDuty’s integration allows users to not
only view critical incident details from within the Microsoft
Teams interface, but also perform key incident actions. This
integration also allows users to work from where they are,
eliminating the need for responders to switch to another
platform in order to communicate with their team while resolving
an incident. We also recently launched integrations with three
automation tools — Pliant.io, Rundeck, and Ayehu — strengthening
our position at the center of the digital ecosystem. The new
integrations, built for PagerDuty by Pliant.io, Rundeck, and
Ayehu, join our successful AWS Eventbridge integration, to allow
our customers to use their preferred tool when automating
incident response work and to give us the most complete offer
for automating incident resolution.
For the second
quarter of fiscal 2021, PagerDuty currently expects:
- Total revenue of
$50.0 million – $51.0 million, representing a growth rate of 24%
– 26% year-over-year
- Non-GAAP net
loss per share of $0.07 – $0.06 assuming approximately 79
For the full
fiscal year 2021, PagerDuty currently expects:
- Total revenue of
$204.0 million – $213.0 million, representing a growth rate of
23% – 28% year-over-year
Non-GAAP net loss per share of $0.30 – $0.25 assuming
approximately 79 million shares