Yahoo Finance PagerDuty (PD) Q4 Earnings Beat Estimates, Revenues Up Y/Y
PagerDuty PD reported fourth-quarter fiscal 2024 non-GAAP earnings of 17 cents per share, beating the Zacks Consensus Estimate by 13.33%. It reported earnings of 7 cents per share in the year-ago quarter.
Revenues of $111.1 million increased 10.1% on a year-over-year basis, primarily driven by strong expansion in the enterprise and mid-market. The figure beat the consensus estimate for revenues by 0.56%.
International revenues contributed 28% to total revenues.
Annual recurring revenues (ARR) increased 10% year over year to $451.9 million.
Customer Growth Aids the Top Line
PagerDuty continued to see strength in the enterprise and mid-market, with a total dollar-based net retention rate of 107% as of Jan 31, 2024.
PagerDuty Price, Consensus and EPS Surprise
PagerDuty price-consensus-eps-surprise-chart | PagerDuty Quote
As of Jan 31, the total number of customers, combining free and paid subscriptions, exceeded 28,000, up approximately 17% year over year.
PD closed the fiscal fourth quarter with 15,039 total paid customers as of Jan 31, 2024 compared with 15,244 at the end of the year-ago period.
Customers with ARR of more than $100,000 were 804 as of Oct 31, 2023 compared with 752 in the year-ago period.
Quarter Details
In fourth-quarter fiscal 2024, non-GAAP gross profit rose 9% year over year to $94.9 million. Gross margin contracted 80 basis points to 85.4%.
Non-GAAP research & development expenses increased 3.1% year over year to $23.9 million.
Non-GAAP sales & marketing expenses rose 6.1% year over year to $44.7 million.
Non-GAAP general & administrative expenses declined 1.9% from the year-ago quarter’s figure to $15.4 million.
Non-GAAP operating income was $11 million compared with the year-ago quarter’s operating income of $6.1 million
Balance Sheet & Cash Flow
As of Jan 31, 2024, PagerDuty had cash and cash equivalents and current investments of $571.2 million compared with $575.3 million as of Oct 31, 2023.
The operating cash flow amounted to $22.2 million, while the free cash flow was $19.6 million.
Guidance
For the first quarter of fiscal 2025, PagerDuty expects revenues between $110.5 million and $112.5 million, indicating growth in the 7% to 9% range.
Non-GAAP earnings for the fiscal first quarter are expected to be in the range of 12-13 cents per share.
For fiscal 2025, PD expects revenues in the range of $470-$431 million, indicating growth in the 9% to 11% range over fiscal 2024.
Non-GAAP earnings are expected in the range of 65-70 cents per share.
Zacks Rank & Key Picks
PagerDuty currently carries a Zacks Rank #4 (Sell).
Logitech LOGI, Meta Platforms META and Synopsys SNPS are some better-ranked stocks in the broader sector that investors can consider, each sporting a Zacks Rank #1 (Strong Buy) at present. You can find the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Logitech, Meta Platforms and Synopsys is currently pegged at 13.13%, 19.5% and 17.51%, respectively.
Shares of Meta Platforms and Synopsys have surged 39% and 6%, respectively, on a year-to-date basis. Logitech shares have declined 1.6% year to date.
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