Why did PD's Q2 2025 results disappoint?

PagerDuty's Q2 2025 results disappointed due to a combination of factors:

1. **Revenue Shortfall**: The company reported a revenue surprise shortfall of -610,000, indicating a significant deviation from expected revenues. This was a notable downside, given PagerDuty's historical revenue growth trajectory.

|code|Ticker|Name|Date|Total Revenue|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|PD|PD.N|PagerDuty|2024 Q3|1.0872E8|-0.16|169|
|PD|PD.N|PagerDuty|2024 Q4|1.11117E8|-0.33|169|
|PD|PD.N|PagerDuty|2025 Q1|1.11172E8|-0.26|169|
|PD|PD.N|PagerDuty|2025 Q2|1.15935E8|-0.14|169|

|code|Ticker|Name|Date|Revenue Surprise|market_code|
|---|---|---|---|---|---|
|PD|PD.N|PagerDuty|2024 Q3|1380000|169|
|PD|PD.N|PagerDuty|2024 Q4|410000|169|
|PD|PD.N|PagerDuty|2025 Q1|-278000|169|
|PD|PD.N|PagerDuty|2025 Q2|-610000|169|

2. **Earnings Miss**: The company reported a net loss of $11.18 million for the quarter, which was a stark contrast to the previous year's performance. This marked a substantial earnings miss, highlighting PagerDuty's struggle with profitability.
3. **Guidance Disappointment**: PagerDuty's guidance for the fiscal year 2025 fell short of market expectations. Despite a slight revenue increase year-over-year, the company's forecast for the year was revised downward to a range of $463 million to $467 million, reflecting a more cautious outlook on future growth.

In summary, PagerDuty's Q2 2025 results were disappointing due to a combination of lower-than-expected revenues, a significant earnings miss, and disappointing guidance for the fiscal year 2025. These factors collectively contributed to the company's challenging financial performance during the quarter.