PagerDuty shares fall 13% on revenue miss, weak guidance By Investing.com

SAN FRANCISCO – PagerDuty Inc. (NYSE: ) reported second-quarter earnings that beat estimates, but shares fell 13.78% in after-hours trading as revenue fell short of expectations and the company provided weaker-than-expected guidance.

The digital operations management platform posted adjusted earnings per share of $0.21, beating the analyst consensus of $0.17. Revenues rose 7.7% from last year to $115.9 million, slightly below the $116.51 million expected by analysts.

PagerDuty’s outlook disappointed investors. For the third quarter, the company estimates revenue of $115.5 million to $117.5 million, well below the consensus estimate of $120.3 million. Full-year revenue guidance was also cut to $463-467 million from the previous range of $471-477 million, falling short of the $473.7 million expected by analysts.

“We remain confident in accelerating ARR growth as global outages reinforce that incident management has become a CEO priority,” said Jennifer Tejada, President and CEO of PagerDuty.

The company maintained profitability, reporting non-GAAP operating income of $20.1 million with an operating margin of 17.3%. Free cash flow was $33.3 million for the quarter.

PagerDuty ended the quarter with 15,044 paying customers, down slightly from 15,146 a year ago. However, customers with annual recurring revenue of more than $100,000 rose 6% to 820.

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