SAN FRANCISCO--(BUSINESS WIRE)-- June 1, 2023 - PagerDuty, Inc. (NYSE:PD), a leader in digital operations management, today announced financial results for the first quarter of fiscal 2024, ended April 30, 2023.

"PagerDuty demonstrated balanced growth in Q1 with solid revenue growth of 21% and record 16% non-GAAP operating margin—up 1,800 basis points with 20% free cash flow margin," said Jennifer Tejada, Chairperson and CEO, PagerDuty. "PagerDuty's strong fundamentals—a resilient and highly engaged mid-market and enterprise customer base, product innovation that sets the Operations Cloud apart, consistently healthy gross margins, and a sustainable cost structure—set the business up for long-term success. Additionally, Generative AI is an intuitive interface to automation that accelerates access to the Operations Cloud for new users across the enterprise."

First Quarter Fiscal 2024 Financial Highlights

• Revenue was $103.2 million, an increase of 9% year over year.
• GAAP operating loss was $15.8 million; GAAP operating margin of negative 3%.
• Non-GAAP operating income was $16.1 million; non-GAAP operating margin of 5%.
• GAAP net loss per share attributable to PagerDuty, Inc. was $0.13; non-GAAP net income per diluted share attributable to PagerDuty, Inc. was $0.20.
• Operating cash flow was $22.2 million, with free cash flow of $20.8 million.
• Cash, cash equivalents and current investments were $495.1 million as of April 30, 2023.

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.

First Quarter and Recent Highlights

• Total paid customers of 15,089 as of April 30, 2023, compared to 15,040 in the year ago period.
• Customers with annual recurring revenue over $100,000 was 764 as of April 30, 2023, compared to 655 in the year ago period.
• Dollar-based net retention rate of 116% as of April 30, 2023, compared to 126% in the year ago period.
• Introduced the first three generative AI-supported capabilities for the PagerDuty Operations Cloud: status updates, incident postmortems and process automation. GenAI brings a consumer-style simplicity to enterprise-grade automation and makes the realization of automation's potential a reality.
• Announced the general availability of PagerDuty AIOps, a game-changing solution, delivering fast time-to-value for our early access customers and eliminating the need for difficult- and expensive-to-implement event management tools and AIOps offerings of the previous generation.
• Released PagerDuty Process AutomationSM as part of the PagerDuty Operations Cloud to enable organizations to orchestrate automation across secure cloud and data center environments.
• New PagerDuty Incident Workflows allowing users to remove toil, take care of rote tasks in incident response, and more quickly focus on problem identification and resolution.
• Published the FY23 Impact Report demonstrating how PagerDuty building a more equitable world by transforming critical work is at the heart of the company's corporate vision.
• Recognized by Parity.org as both a Best Company for Women to Advance and a Best Company for People of Color to Advance.
• Named a 2023 Inspiring Workplaces Awards finalist for North America for PagerDuty's creation of an Inspiring Workplace.
• PagerDuty earned a top spot on G2's 2023 list of the Best Software Products for providing best-in-class products and experience for customers.
• Featured case study: US City Government
• Lands and expands include: 11:11 Systems, Cisco, Docusign, IBM, Palo Alto Networks and Vodafone.

Financial Outlook

For the second quarter of fiscal 2024, PagerDuty currently expects:

• Total revenue of $103.5 million - $105.5 million, representing a growth rate of 15% - 17% year over year
• Non-GAAP net income per diluted share attributable to PagerDuty, Inc. of $0.10 - $0.11 assuming approximately 105 million diluted shares

For the full fiscal year 2024, PagerDuty currently expects:

• Total revenue of $425.0 million - $430.0 million (down from $446.0 million and $452.0 million), representing a growth rate of 15% - 16% year over year
• Non-GAAP net income per diluted share attributable to PagerDuty, Inc. of $0.60 - $0.65 (up from $0.45 and $0.50) assuming approximately 105 million diluted shares

These statements are forward-looking and actual results may differ materially. Please refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

PagerDuty has not reconciled its expectations as to non-GAAP net income (loss) per share attributable to PagerDuty, Inc. to GAAP net loss per share attributable to PagerDuty, Inc. because certain items are out of its control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP net income (loss) per share attributable to PagerDuty, Inc. is not available without unreasonable effort.

About PagerDuty

PagerDuty, Inc. (NYSE:PD) is a global leader in digital operations management. The PagerDuty Operations Cloud revolutionizes how critical work gets done, and powers the agility that drives digital transformation. Customers rely on the PagerDuty Operations Cloud to compress costs, accelerate productivity, win revenue, sustain seamless digital experiences, and earn customer trust. Nearly half of the Fortune 500 and almost two thirds of the Fortune 100 trust PagerDuty including Cisco, Cox Automotive, DoorDash, Electronic Arts, Genentech, Shopify, Zoom and more. To learn more and try PagerDuty for free, visit www.pagerduty.com. Follow our blog and connect with us on Twitter, LinkedIn, YouTube and Facebook. We're also hiring, visit https://www.careers.pagerduty.com/ to learn more.