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Pagerduty Inc(PD-N)
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PagerDuty (PD) Reports Q3: Everything You Need To Know Ahead Of Earnings

StockStory - Wed Nov 29, 2023

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IT incident response platform PagerDuty (NYSE:PD) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter PagerDuty reported revenues of $107.6 million, up 19.2% year on year, beating analyst revenue expectations by 2.6%. It was a strong quarter for the company, with accelerating customer growth and a decent beat of analysts' revenue estimates. The company added 57 customers to a total of 15,146.

Is PagerDuty buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting PagerDuty's revenue to grow 14.4% year on year to $107.7 million, slowing down from the 31.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.

PagerDuty Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.2%.

Looking at PagerDuty's peers in the software development segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Datadog delivered top-line growth of 25.4% year on year, beating analyst estimates by 4.5% and Dynatrace reported revenues up 25.9% year on year, exceeding estimates by 2.1%. Datadog traded up 18.9% on the results, and Dynatrace was up 9%.

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 the stocks up on average 11.8% over the last month. PagerDuty is up 8.6% during the same time, and is heading into the earnings with analyst price target of $28.5, compared to share price of $21.9.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.

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