Q1 2026 PagerDuty Inc Earnings Call Transcript
Key Points
- PagerDuty Inc (PD) delivered revenue of $120 million, representing 8% growth at the top of their guidance range.
- Non-GAAP operating margin reached 20%, exceeding their target by 500 basis points.
- Significant improvement in net-new paid customers, driven by a new commercial digital acquisition strategy.
- Strengthened strategic partnership with AWS, expanding integration capabilities and serving nearly 6,000 joint customers.
- Public sector expansion achieved FedRAMP Low authorization, enabling federal agencies to leverage AI and automation capabilities.
- Dollar-based net retention was 104%, reflecting higher than expected customer downgrades in the enterprise segment and elevated churn in the commercial business.
- Transitional dynamics in the go-to-market motion led to inconsistent sales and marketing execution.
- Organizational transitions and go-to-market execution challenges impacted Q1 results.
- Revenue growth guidance for the full fiscal year 2026 was revised down to a range of 5% to 7%, compared to the previous range of 6% to 7%.
- Enterprise churn was noted, with downgrades due to company mergers and cautious spending due to macroeconomic uncertainty.
Good afternoon and thank you for joining us to discuss PagerDutyâs first quarter fiscal year 2026 results. With me on todayâs call are Jennifer Tejada, PagerDutyâs Chairperson and Chief Executive Officer; and Howard Wilson, our Chief Financial Officer.
Before we begin, let me remind everyone that statements made on this call include forward-looking statements based on the environment as we currently see it, which involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements.
These forward-looking statements include our growth prospects, future revenue, operating margins, net income, cash balance, and total addressable market, among others, and represent our managementâs belief and assumptions only as of the date such statements are made and we undertake no obligation to update these.
During todayâs call, we will discuss non-GAAP financial measures which are in addition
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
