Digital operations platform PagerDuty (NYSE: PD) will be reporting earnings this Thursday after market close. Here’s what you need to know.
PagerDuty beat analysts’ revenue expectations last quarter, reporting revenues of $124.8 million, up 2.7% year on year. It was a slower quarter for the company, with full-year guidance of slowing revenue growth and full-year revenue guidance missing analysts’ expectations significantly. It lost -47 customers and ended up with a total of 15,351.
Is PagerDuty a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PagerDuty’s revenue to be flat year on year, slowing from the 7.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PagerDuty has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at PagerDuty’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Datadog delivered year-on-year revenue growth of 32.2%, beating analysts’ expectations by 4.9%, and Dynatrace reported revenues up 19.4%, topping estimates by 2.1%. Datadog traded up 39.3% following the results while Dynatrace was down 5.3%.
Read our full analysis of Datadog’s results here and Dynatrace’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 10.1% on average over the last month. PagerDuty is up 5.8% during the same time and is heading into earnings with an average analyst price target of $8 (compared to the current share price of $7.13).
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