What is the revenue and EPS growth rate for PagerDuty year over year?

What does PagerDuty do and what are its main business segments?

What is PagerDuty's latest dividend and current dividend yield?

Did PagerDuty beat or miss consensus estimates last quarter?

What were the key takeaways from PagerDuty’s earnings call?

What factors drove the changes in PagerDuty's revenue and profit?

What is the market's earnings forecast for PagerDuty next quarter?

What were the key takeaways from PagerDuty's earnings call?

- **Revenue resilience**: $125M Q3 revenue (+5% YoY) with GAAP net income of $160M, marking second consecutive quarter of GAAP profitability.
- **Margin expansion**: Operating margin 29% (vs. 21% YoY), with long-term target of 30%.
- **Retention headwinds**: DBNR at 100% due to enterprise seat compression, offset by multiyear deals and usage-based pricing wins (+50% YoY in AIOps). 
- **Strategic shift**: Transitioning from seat-based to usage-based licensing, with AIOps now >$1M ARR and 2.4M shares repurchased under buyback plan.

**【CEO Summary Section】**
- Q3 revenue of $125 million, up 5% YoY, with GAAP net income of $160 million (including a one-time tax benefit). Non-GAAP operating margin expanded to 29%, up 800 basis points YoY.
- Annual Recurring Revenue (ARR) reached $497 million, growing 3% YoY, driven by 5% expansion in high-value customers (> $100k ARR). 
- Key challenges: Seat license compression in large enterprises due to budget caution, offset by multiyear agreements and usage-based pricing wins (e.g., +50% YoY growth in AIOps product). 
- Strategic focus: 1) Expand operating margins toward 30% via cost efficiency; 2) Build AI operations leadership with agentic incident management suite; 3) Shift from seat-based to usage-based pricing models.

**【CFO Financial Commentary】**
- Q3 gross margin 87%, above target range of 84-86%, driven by operational efficiency. Operating income $36 million (29% of revenue), up from $25 million (21% of revenue) YoY.
- Free cash flow $21 million (17% of revenue), with $548 million in cash on hand. Shares repurchased: 2.4 million under $200 million buyback plan.
- Q4 guidance: Revenue $122-124 million (0-2% YoY), full year ARR $490-492 million (5% YoY). Operating margin target 24% for FY26, up from prior 21-22% range.
- Long-term outlook: GAAP profitability for full year FY27, with focus on margin expansion and cash flow generation.

**【Q&A Key Highlights】**
- **Retention Challenges**: Dollar-based net retention (DBNR) at 100% (down from 102% Q2), driven by larger-than-expected seat reductions in reorganizing enterprises. Absolute churn improved, but dollar impact worsened. 
- **Usage-Based Pricing**: Early wins in gaming, automotive, and banking sectors, with flexible licensing reducing friction for expansion. AIOps product now >$1 million ARR. 
- **Go-to-Market Shift**: New CRO Todd McNabb driving land/expand motion, with 40+ customer engagements in first 30 days. Focus on multiyear agreements and professional services to accelerate value realization. 
- **Product Innovation**: Industry-first agentic incident management suite launched, with agents leveraging 700+ integrations and MCP protocol for cross-platform orchestration. Integration with Spotify's Backstage developer portal positions as proactive issue prevention leader.

PagerDuty, Inc. (PD) Q3 2026 Earnings Call Transcript

- **First GAAP Profitable Quarter**: $123M revenue, 25% operating margin, and $31M GAAP net income.
- **ARR Growth & Expansion**: $499M ARR (+5% YoY), 102% DBNR, and 208 new customers in H1.
- **AI-Driven Innovation**: Launch of four AI agents, 60%+ growth in AI Ops, and 2% ARR from AI-native companies.
- **Financial Strength**: $568M cash, $30M free cash flow, and expanded $200M share buyback program.
- **Pipeline & Strategy**: 60%+ tenured reps, new CRO to accelerate enterprise sales, and shift to usage-based pricing.

**【CEO Summary Section】**
- Q2 revenue of $123 million, marking the first GAAP profitable quarter in company history.
- Annual Recurring Revenue (ARR) reached $499 million, up 5% year-over-year, with 102% Dollar-Based Net Retention (DBNR).
- New customer additions doubled compared to FY25, with 208 net new customers in the first half.
- Shift to usage-based pricing models, with AI Ops growing over 60% and new AI agents (Shift, Scribe, Insights, SRE) launching this quarter.
- Strategic partnerships with Amazon Q and Microsoft Azure, enhancing ecosystem integration.
- Traction in AI-native companies, contributing 2% of ARR and growing rapidly.

**【CFO Financial Commentary】**
- GAAP net income of $31 million, with non-GAAP operating margin of 25%.
- Gross margin of 86%, cash flow from operations of $34 million, and free cash flow of $30 million.
- Q3 guidance: Revenue $124-126 million (4-6% growth), EPS $0.24-0.25.
- FY26 guidance: Revenue $493-497 million (5-6% growth), EPS $1-1.4.
- Expansion of share repurchase program to $200 million.

**【Q&A Highlights】**
- Transition to usage-based pricing: 60% of new products use this model, with positive customer feedback on value alignment.
- New CRO Todd McNabb to accelerate enterprise sales transformation, focusing on North America and international markets.
- ARR quality: 75% from enterprises, 65% from multi-product customers, 70% from incident management.
- Seat optimization impact: DBNR decline due to downgrades, but platform usage growing 25%+ year-over-year.
- Pipeline improvement: 60% of reps with >1 year tenure, stronger account coverage in international regions.
- FY27 outlook: GAAP profitability, margin expansion, and capital return through share buybacks.

PagerDuty, Inc. (PD) Q2 2026 Earnings Call Transcript

- **Revenue Resilience**: Q1 2026 revenue up 8% YoY to $120 million, with ARR at $496 million (7% YoY). Non-GAAP operating margin improved to 20%.
- **AI-Driven Expansion**: Generative AI solutions like PagerDuty Advance gained traction, with 25% of enterprise customers expanding use cases. New pricing flexibility accelerates adoption.
- **Sales Transformation**: Over 60% of enterprise reps will be in role >1 year by Q2, signaling maturing sales execution and potential H2 improvement.
- **Financial Discipline**: Strong cash flow ($29M free cash flow) and $597M cash balance support $150M share buyback program. Operating margin target of 30% remains long-term focus.
- **Key Wins**: 7-figure deal with global financial market infrastructure company and 6-figure commitment from leading AI research firm highlight platform resilience in mission-critical environments.


**【CEO Summary Section】**
- Q1 2026 revenue reached $120 million, up 8% YoY, with ARR growing to $496 million (7% YoY). Non-GAAP operating margin improved to 20%, exceeding targets by 500 basis points.
- Dollar-based net retention (DBNR) was 104%, impacted by enterprise downgrades and commercial churn. New commercial digital acquisition strategy drove net new customers to 127, the highest in eight quarters.
- Strategic shifts include transitioning to value-centric enterprise sales, expanding AI capabilities (e.g., PagerDuty Advance), and deepening customer engagement through post-sale frameworks. Over 60% of enterprise reps will be in their role for at least a year by Q2, signaling maturing sales execution.
- Key wins include a 7-figure multiyear deal with a global financial market infrastructure company and a 6-figure commitment from a leading AI research firm, showcasing platform resilience in mission-critical environments.

**【CFO Financial Commentary】**
- Q1 GAAP net income was $420 million, with non-GAAP EPS of $1.08, exceeding expectations. Gross margin was 86% (high end of 84-86% target). Operating income was $24 million (20% of revenue), up from $15 million (14% of revenue) in Q1 2025.
- Free cash flow was $29 million (24% of revenue). Cash balance remained strong at $597 million, supporting a $150 million share repurchase program.
- Q2 guidance: Revenue $122.5-124.5 million (6-7% YoY), operating margin 17%. Full-year 2026 revenue expected $493-499 million (5-7% YoY), with operating margin 20-21%.

**【Q&A Key Highlights】**
- **Enterprise Execution**: CEO attributes Q1 challenges to transitional execution gaps but notes 848 customers over $100k ARR (5% YoY growth). New sales leadership and mature reps expected to drive H2 improvement.
- **AI Adoption**: Generative AI solutions (e.g., AI Scribe) saw strong customer interest, with 25% of enterprise customers expanding use cases. Pricing flexibility and product-led growth are reducing friction.
- **Financial Prudence**: CFO emphasizes prudent guidance reflecting organizational transitions. Operating margin target of 30% remains long-term focus, with share buybacks and GAAP profitability on track for FY2027.
- **SMB Recovery**: Commercial segment shows demand recovery, driven by native AI companies and product-led growth. SMB ARR growth aligns with enterprise momentum.


PagerDuty, Inc. (PD) Q1 2026 Earnings Call Transcript

- **Non-GAAP Profitability & Growth**: 9% ARR expansion, 18% operating margin, and 23% free cash flow margin highlight operational excellence.
- **Enterprise Strength**: 72 customers exceed $1M ARR, 849 >$100K customers, with 12% YoY growth in >$100K ARR (71% of total).
- **AI Innovation Momentum**: Launch of AI agents for SRE, operations, and scheduling; 40%+ incremental ARR from AIOps/Automation in Q4.
- **FY'26 Outlook**: 7-8% revenue growth, 19-20% operating margin, and $150M share buyback signal confidence.
- **Customer Success**: 28% incident duration reduction and 3x ARR investment growth in two years validate platform value.

**【CEO Summary Section】**
- Delivered third consecutive year of non-GAAP profitability with 9% revenue and ARR growth, expanding non-GAAP operating margin to 18% and free cash flow margin to 23%.
- Enterprise traction strong: 72 customers exceed $1M ARR, 849 customers invest >$100K annually, with ARR from >$100K customers growing 12% YoY (71% of total ARR).
- Multi-product adoption accelerates: 65% of ARR from multi-product customers (up from 62% last year).
- Launched AI agents for SRE, operations analysis, and scheduling optimization, embedding AI across all paid tiers.
- Customer success stories include a financial institution reducing incident duration by 28% and a semiconductor supplier tripling ARR investment in two years.
- FY'26 priorities: build pipeline, accelerate enterprise adoption, and demonstrate platform innovation value.

**【CFO Financial Commentary】**
- Q4 revenue: $121M (+9% YoY), ARR: $494M (+9% YoY), non-GAAP operating margin: 18%.
- Introduced $150M share repurchase program, completing $100M program in Q4.
- FY'26 guidance: revenue $500M-$507M (+7-8%), EPS $0.90-$0.95, operating margin 19-20%.
- Long-term operating margin target raised to 20-30% (from 20%).
- Q1'26 outlook: revenue $118M-$120M (+6-8%), EPS $0.18-$0.19.

**【Q&A Key Highlights】**
- **Market & Sales Execution**: Adapted to enterprise top-down selling, hiring 150+ reps with 64% in Q4. Early success in multi-year agreements (e.g., 3-year financial institution deal). 
- **Competitive Position**: Differentiated by platform depth, multi-year contracts (69% of RPO in next 12 months), and 72% enterprise NRR vs. 62% SMB.
- **AI & Innovation**: AI agents in early adoption phase, with 40%+ incremental ARR from AIOps/Automation in two consecutive quarters.
- **SMB Recovery**: Rebalanced commercial strategy with digital-first experience, expecting modest SMB growth in FY'26.
- **Macro Impact**: No immediate tariff impact, focusing on high ROI platforms with 400%+ customer ROI (e.g., financial institution case study).

PagerDuty (PD)-13 Mar 25-2025 Q4 Earnings call transcript

PagerDuty (PD)-26 Nov 24-2025 Q3 Earnings call transcript

PagerDuty (PD)-3 Sep 24-2025 Q2 Earnings call transcript

Pagerduty (PD)-30 May 24-2025 Q1 Earnings call transcript

Pagerduty (PD)-14 Mar 24-2024 Q4 Earnings call transcript

Pagerduty (PD)-30 Nov 23-2024 Q3 Earnings call transcript

Pagerduty (PD)-31 Aug 23-2024 Q2 Earnings call transcript

Pagerduty (PD)-1 Jun 23-2024 Q1 Earnings call transcript

- **Revenue and Profit Growth**: FY2023 revenue up 32% to $371 million, with non-GAAP profitability achieved one year early. Q4 revenue $101 million (29% YoY), operating margin 6%.
- **Innovative Products**: Launch of AI-driven Incident Workflows and Status Pages, with 752 customers spending over $100,000 ARR (27% YoY growth).
- **FY2024 Outlook**: 20-22% revenue growth, 8-9% operating margin, driven by platform expansion and automation.
- **Strategic Focus**: Leveraging AI/automation for efficiency, navigating macro challenges with disciplined cost control and customer retention.

**【CEO Summary Section】**
- **Revenue Growth and Profitability**: Achieved 32% year-over-year revenue growth in FY2023, surpassing $400 million in annual recurring revenue (ARR). Non-GAAP profitability was achieved one year ahead of plan, with a 1% operating margin. Q4 revenue was $101 million, up 29% YoY.
- **Product Innovation**: Launched Incident Workflows (AI-driven automation) and Status Pages, which integrate with Event Orchestration for real-time updates. These products help customers reduce costs and improve operational efficiency.
- **Customer Retention**: Dollar-based net retention rate of 120% for nine consecutive quarters. Customers spending over $100,000 ARR grew 27% YoY to 752.
- **Challenges**: Elongated sales cycles and elevated churn in SMBs, but adapted by improving cost structure and platform differentiation.

**【CFO Financial Commentary】**
- **Q4 Financials**: Revenue $101 million (29% YoY), non-GAAP operating margin 6%, free cash flow $16 million. FY2023 revenue $371 million (32% YoY), non-GAAP operating margin 1%, free cash flow $9 million.
- **FY2024 Guidance**: Revenue $446-452 million (20-22% growth), non-GAAP net income $0.45-0.50 per share, operating margin 8-9%. Q1 guidance: $102-104 million revenue, 6-7% operating margin.
- **Key Metrics**: Gross margin 85-86%, deferred revenue $209 million (23% YoY), billings $130 million (23% YoY).

**【Q&A Highlights】**
- **Generative AI and Automation**: Investing in AI for workflow automation and AIOps. Generative AI's role in diagnostics and root cause analysis is under exploration.
- **International Markets**: 24% of revenue from international, with Japan showing early success. Europe faces elongated sales cycles but high customer engagement.
- **Partnerships**: AWS and ServiceNow integrations drive platform adoption. Japan partnership with local firms targets financial services.
- **Macroeconomic Impact**: Longer sales cycles, smaller deal sizes, but strong retention and platform monetization offset challenges.
- **Free Cash Flow**: Expects FY2024 free cash flow margin to be 2-3 points higher than operating margin.

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