PagerDuty tops $80 million in sales for first time, stock rises

PagerDuty tops $80 million in sales for first time, stock rises
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PagerDuty Inc. reported sales and earnings that easily surpassed analyst estimates Thursday, initially pushing the company’s stock up 4% in after-hours trading.

PagerDuty
PD,
+7.99%
reported a fiscal first-quarter net loss of $32.8 million, or 38 cents a share, compared with a net loss of $22.6 million, or 27 cents a share, in the year-ago quarter. The adjusted net loss was 4 cents a share.

Revenue soared 34% to a record $85.4 million from $63.6 million a year ago, for the software company’s fourth straight quarter of at least 30% year-over-year growth.

Analysts surveyed by FactSet had expected an adjusted loss of 8 cents a share on revenue of $82.7 million. PagerDuty shares topped $28 on Thursday after closing with an 8% gain at $27.43.

During the quarter, PagerDuty “landed and expanded” deals with DocuSign Inc.
DOCU,
+6.71%,
Cisco Systems Inc.
CSCO,
+1.24%,
Roche Holdings’
ROG,
-0.36%
Genentech Inc. , Mattel Inc.
MAT,
+1.63%
and Shopify Inc.
SHOP,
+9.58%,
according to PagerDuty Chief Financial Officer Howard Wilson.

“We are on track to be profitable for the full fiscal 2024 [next year], and to break even this fourth quarter,” Wilson told MarketWatch in an interview.

The company offered second-quarter guidance of between $87 million and $89 million in revenue, representing a growth rate of 29% to 31% year-over-year, and an adjusted loss of 8 cents to 9 cents a share. FactSet analysts were projecting revenue of $87.2 million and a loss of 8 cents a share.

Shares of PagerDuty have decreased 21% this year, while the broader S&P 500 index 
SPX,
+1.84%
has declined 12%.

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