PagerDuty (PD, Financial) has set its sights on second-quarter revenue figures that could range from $122.5 million to $124.5 million. This forecast aligns closely with market expectations, which currently project a consensus revenue of $123.81 million. The company appears confident in its financial outlook, with these projections providing a clear indication of its performance trajectory for the quarter.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for PagerDuty Inc (PD, Financial) is $20.00 with a high estimate of $26.00 and a low estimate of $16.00. The average target implies an upside of 24.22% from the current price of $16.10. More detailed estimate data can be found on the PagerDuty Inc (PD) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, PagerDuty Inc's (PD, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for PagerDuty Inc (PD, Financial) in one year is $30.36, suggesting a upside of 88.57% from the current price of $16.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the PagerDuty Inc (PD) Summary page.
PD Key Business Developments
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PagerDuty Inc (PD, Financial) delivered its third consecutive year of non-GAAP profitability, showcasing the strength and durability of its business model.
- The company achieved 9% annual growth in both revenue and annual recurring revenue (ARR), with a significant expansion in non-GAAP operating margin by nearly 500 basis points to 18%.
- Free cash flow margin expanded from 15% to 23%, indicating strong operational discipline and an efficient growth strategy.
- Enterprise traction improved with a strategic shift towards multi-year, multi-product platform partnerships, with multi-product customers now driving 65% of total ARR.
- The introduction of new AI capabilities and frictionless packaging structure is expected to extend competitive differentiators and align with the transformative value delivered to customers.
Negative Points
- Revenue performance did not meet initial expectations due to go-to-market execution falling short of historically high standards.
- There is near-term pressure on growth due to the transition to an enterprise-focused top-down value selling motion amidst a volatile macro environment.
- The transformation of the go-to-market approach has not scaled across the entire enterprise organization at the intended pace.
- Financial impact from strategic changes is expected to materialize gradually over time, indicating potential short-term challenges.
- The company is undergoing a leadership transition, including the search for a new Chief Revenue Officer, which may cause temporary disruptions.
