Pagerduty, Inc. · NYSE:PD
Pagerduty — Q3 FY2024 Earnings Presentation
32 slides from Pagerduty's earnings presentation, Nov 30, 2023
Slide 1: Investor presentation Q3 FY 2024
Investor presentation Q3 FY 2024 Period ended October 31, 2023
Slide 2: Safe harbor
Safe harbor This presentation contains forward-looking statements. All statements other than statements of This presentation also contains estimates and other statistical data made by independent historical fact contained in this presentation, including statements as to future results of operations
Slide 3: Purpose, Vision, Mission
Purpose We empower teams with the time and efficiency to build the future. Vision An equitable world where we transform critical work so all teams can delight their customers and build trust. Mission To revolutionize operations and build customer trust by anticipating the unexpected in an unpredicta
Slide 4: Our core promise, core value, core users
Our core Our core Our core promise value users For Developers, IT Operations, We help those teams spend less time PagerDuty is essential infrastructure Customer Service, Security, and on interrupt work—and more time for digital operations: integrates with more teams, we are the best way focused on c
Slide 5: PagerDuty overview
PagerDuty overview Strong Durable Scaled Non-GAAP scale revenue growth adoption profitable $109m 15% 15,049 14% Quarter ended Revenue growth YoY Paid customers as of Q3’24 Non-GAAP October 31, 2023 through Q3’24 October 31, 2023 Operating Margin See appendix for GAAP to non-GAAP reconciliation
Slide 6: PagerDuty Operations maturity model
PagerDuty Operations maturity model MANUAL REACTIVE RESPONSIVE PROACTIVE PREVENTATIVE Issues are identified by Always in firefighting Resolving issues as they Seamless, coordinated Ahead of issues before customers, not by internal mode. occur. issue management. they start. teams. Organizations have
Slide 7: PagerDuty's Operations Cloud: Enabling customers to meet their objectives
PagerDuty’s Operations Cloud: Enabling customers to meet their objectives Enterprise priorities PagerDuty delivers through Grow revenue by increasing Modern operations capabilities enable teams to move innovation velocity faster, create more value, and build a competitive advantage Reduce costs to a
Slide 8: 66% have more than 10 observability tools
66% have more than 10 observability tools Total observability tools used to collect data from application 11-15 environment 46% Source: ESG Research Report, Observability from Code to Cloud, May 2022. 6-10 22% 16-20 1-5 17% 10% 20+ 3% Don’t know 2%
Slide 9: The PagerDuty Operations Cloud
The PagerDuty Operations Cloud Monitoring & Customer Service Observability 700+ integrations Reduce MTTR by 25% Security Business Ops & IoT DevOps & Lifecycle ChatOps & Collaboration DataOps ITOps & ITSM Higher customer 87% fewer satisfaction per case incidents
Slide 10: The Operations Cloud pillars
The Operations Cloud pillars Land: PagerDuty Incident Add on: PagerDuty AIOPs: Land: PagerDuty Process Land: PagerDuty for Management consumption pricing, starting at Automation Self-managed Customer Service $4,788/year (contact for pricing) – Free – Professional $252 per user/year – Professional $2
Slide 11: Visualize, Reduce, Enrich, Prioritize, Triage, Automate
Visualize Reduce, Enrich, Prioritize Triage Automate Identify incidents that matter Improve situational awareness Automate manual toil Learn Integrate Observability Email Custom ITOM/ITSM Change Event Transformer
Slide 12: Complete the lifecycle with PagerDuty Incident Management
Complete the lifecycle with PagerDuty Incident Management Mitigate revenue and Streamlined process for Consolidate, reputational risk faster resolution simplify and save The proactive approach of keeping Leveraging automation enhances Reduces operating costs and eases communication with key stakehol
Slide 13: PagerDuty Operations Cloud fall launch: GenAI-supported capabilities
PagerDuty Operations Cloud fall launch: GenAI-supported capabilities Blog PagerDuty Global PagerDuty GenAI PagerDuty GenAI Alert Grouping Post Mortems Status Updates Reduces interruptions by grouping PagerDuty automatically creates a draft Removes manual work and reduces event data across all your s
Slide 14: Recognized as an industry leader
Recognized as an industry leader Leading the Forrester Gartner recognized competitive landscape1 product leadership 9 Challengers Contenders Strong performers Leaders BMC Stronger Software current offering Aisera ServiceNow SolarWinds BigPanda Hype Cycle™ Sumo Report Recognitions Logic UST Moogsoft
Slide 15: Why PagerDuty wins – fast time to value
Why PagerDuty wins – fast time to value Technology Customer focus Integrations AI / Machine Automation 24/7 availability Enterprise Scale Easy setup Learning Driving value for customers 795% 77% 2 months 74% 85% Reduced time to Reduction in Reduced time to identify 3-year ROI To payback troubleshoot
Slide 16: Underpenetrated, fragmented market opportunity
Underpenetrated, fragmented market opportunity 75 million users by persona (estimated) in 2022 $38B Total Addressable Market Developers: driven by digital services and software-driven innovation → 25m users ~$38B Automation Infrastructure and Operations: undergoing modernization with Digital, Cloud
Slide 17: Go-to-market model aligns to customer opportunity
Go-to-market model aligns to customer opportunity Customer segment (by $ revenue) Sales channel High value Enterprise >$1B field sales Self-service High velocity Mid-Market >$50m inside sales Programmatic SMB <$50m digital sales Strong upsell motion with 58% of ARR coming from customers with two or
Slide 18: Innovation driven land-and-expand model
Innovation driven land-and-expand model Expansion Motion at a Expanded product mix and purchase A leading financial services organization relies on Major Financial Institution sets for international PagerDuty to increase workforce efficiency, critical business needs application uptime, and operating
Slide 19: PagerDuty helps Hyland free up time to focus on innovation
PagerDuty helps Hyland free up About time to focus on innovation Hyland is an American multinational corporation headquartered in Westlake, OH. Its enterprise information platform, OnBase, centralizes Challenges Solution Results business content in one secure location. – Struggled to get – PagerDuty
Slide 20: Recent key accomplishments
Recent key accomplishments Product innovation – Released PagerDuty Process AutomationSM as part of the PagerDuty Operations Cloud to enable organizations to orchestrate automation across secure cloud and data center environments – Introduced PagerDuty AIOps to address large-scale event correlation,
Slide 21: Focus on environmental, social and governance
Strong employee commitment Focus on environmental, to giving back social and governance 85% volunteer participation points to an actively engaged workforce Top bay area philanthropist Recognized as one of the top 100 (#59) corporate philanthropies in the Bay Area for the second consecutive year, by
Slide 22: Financials
Financials PagerDuty
Slide 23: Select operating metrics
Select operating metrics FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 Revenue $94 $101 $103 $108 $109 Revenue Growth 31% 29% 21% 19% 15% Non-GAAP Operating Margin 3% 6% 16% 13% 14% DBNR 123% 120% 116% 114% 110% Paid Customers 15,265 15,244 15,089 15,146 15,049 Customers >$100K 710 752 764 773 778
Slide 24: Non-GAAP target operating model
Non-GAAP target operating model % of Revenue FY20 FY21 FY22 FY23 Q3 FY24 Target Gross Margin 86% 87% 85% 85% 86% 85% Sales & Marketing 53% 50% 50% 43% 38% 35% Research & 26% 25% 25% 24% 21% 20% Development General & 24% 21% 19% 17% 13% 10% Administrative Operating Margin (17%) (8%) (8%) 1% 14% 20%
Slide 25: Our mission at PagerDuty
Our mission at PagerDuty is to revolutionize operations and build customer trust by anticipating the unexpected in an unpredictable world.
Slide 26: Investment highlights
Investment highlights Real-time leading operations Comprehensive product offerings to optimize operating efficiency cloud platform and offer tangible ROI Significant market opportunity Customer-driven demand across business operations and industrial operations Expansive enterprise adoption Strong en
Slide 27: Appendix
Appendix PagerDuty
Slide 28: Definitions
Definitions Annual recurring revenue (ARR) - Annualized recurring value of all active contracts at the end of a reporting period. Customer - A separate legal entity, such as a company or an educational or government institution, that has an active subscription with us or one of our partners to acces
Slide 29: Reconciliation
Reconciliation PagerDuty, Inc. Reconciliation of GAAP to Non-GAAP Data (in thousands, except percentages and per share data) (unaudited) Three Months Ended October 31 Year Ended January 31 2023 2022 2023 2022 2021 Reconciliation of gross profit and gross margin GAAP gross profit $89,015 $76,196 $300
Slide 30: Reconciliation con't
Reconciliation con’t PagerDuty, Inc. Reconciliation of GAAP to Non-GAAP Data (in thousands, except percentages and per share data) (unaudited) Three Months Ended October 31 Year Ended January 31 2023 2022 2023 2022 2021 GAAP sales and marketing $49,630 $47,118 $195,622 $161,624 $122,155 Less: Stock-
Slide 31: Reconciliation con't
Reconciliation con’t PagerDuty, Inc. Reconciliation of GAAP to Non-GAAP Data (in thousands, except percentages and per share data) (unaudited) Three Months Ended October 31 Year Ended January 31 2023 2022 2023 2022 2021 Reconciliation of net loss attributable to PagerDuty, Inc. GAAP net loss attribu
Slide 32: Reconciliation con't
Reconciliation con’t PagerDuty, Inc. Reconciliation of GAAP to Non-GAAP Data (in thousands, except percentages and per share data) (unaudited) Free Cash Flow Three Months Ended October 31 Year Ended January 31 2023 2022 2023 2022 2021 Net cash provided by (used in) operating activities $16,917 $(448