Pagerduty, Inc. · NYSE:PD
Pagerduty — Q2 FY2025 Earnings Presentation
26 slides from Pagerduty's earnings presentation, Sep 3, 2024
Slide 1: Investor presentation Q2 2025
Investor presentation Q2 2025 Period ended July 31, 2024
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: PagerDuty Q2 overview
PagerDuty Q2 overview Quarterly Year-over-Year Non-GAAP Paid customers revenue revenue growth operating margin $116m 8% 15,044 17% See appendix for GAAP to non-GAAP reconciliation
Slide 5: The PagerDuty Operations Cloud: Addressing customers' critical business priorities
The PagerDuty Operations Cloud: Addressing customers’ critical business priorities Enterprise priorities PagerDuty delivers Grow revenue by increasing Modern operations capabilities enable teams to innovation velocity move faster, create more value, and build a competitive advantage Reduce costs to
Slide 6: The PagerDuty Operations Cloud
The PagerDuty Operations Cloud Digital Operations Resiliency Automation Scaled Service Standardization & CoE Ownership Remote Location Incident Management Operations Automation Transformation Operations Center Customer Experience Modernization Operations Extensive Foundational Embedded No-Code to Ze
Slide 7: The PagerDuty Operations Cloud
The PagerDuty Operations Cloud Monitoring & Customer Service 700+ Observability integrations Reduce MTTR by 25% Security Business Ops & IoT DevOps & Lifecycle ChatOps & Collaboration DataOps ITOps & ITSM 87% fewer Higher customer incidents satisfaction per case
Slide 8: The Operations Cloud product pillars
The Operations Cloud product pillars PagerDuty Incident Management PagerDuty AIOPs: consumption Runbook Automation, PagerDuty for Customer Service pricing, starting at $4,788/year $1,500 per user/year – Professional $252 per user/year – Professional $252 per user/year – Business $492 per user/year R
Slide 9: The PagerDuty Operations Cloud is a market leader
The PagerDuty Operations Cloud is a market leader GigaOm Forrester Wave G2 Incident Response Platforms Radar Process-Centric AIOps Workload Automation Grid #1 Overall Leader Leader #1 Overall Leader
Slide 10: Underpenetrated, fragmented market opportunity
Underpenetrated, fragmented market opportunity 80 million users by persona (estimated) in 2023 $38B Total Addressable Market Developers: driven by digital services and software-driven ~$38B Automation innovation → 29m users Infrastructure and Operations: undergoing modernization ~$30B AIOps with Dig
Slide 11: 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 <$50m digital sales
Slide 12: Why PagerDuty wins – fast time to value
Why PagerDuty wins – fast time to value Technology Customer focus Integrations 24/7 availability AI / Machine learning Enterprise scale Automation Easy setup
Slide 13: Innovation-driven land-and-expand model
Innovation-driven land-and-expand model Expansion Motion at a Expanded product mix and purchase A leading financial services organization relies on Major Financial Institution sets for international PagerDuty to increase workforce efficiency, critical business needs application uptime, and operating
Slide 14: Momentum in the enterprise segment: Million-dollar ARR customers continue to expand
Momentum in the enterprise segment: Million-dollar ARR customers continue to expand Operations Expanding reach Technology Increasing ARR Cloud traction within the enterprise recognized as a is earned by driving with adoption value driver for delivering proven multi-product, across business driving i
Slide 15: Focus on Global Impact
PagerDuty FY24 Impact Focus on Global Impact / PagerDuty A
Slide 16: Financials
Financials PagerDuty
Slide 17: Select operating metrics
Select operating metrics FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 Revenue ($m) $108 $109 $111 $111 $116 Revenue Growth 19% 15% 10% 8% 8% Non-GAAP Operating Margin 13% 14% 10% 14% 17% DBNR 114% 110% 107% 106% 106% Paid Customers 15,146 15,049 15,039 15,120 15,044 Customers >$100K 773 778 804 811 820 S
Slide 18: Non-GAAP target operating model
Non-GAAP target operating model % of Revenue FY20 FY21 FY22 FY23 FY24 Q2’FY25 Target Gross Margin 86% 87% 85% 85% 86% 86% 85% Sales & Marketing 53% 50% 50% 43% 38% 36% 35% Research & 26% 25% 25% 24% 22% 20% 20% Development General & 24% 21% 19% 17% 13% 13% 10% Administrative Operating Margin (17%) (
Slide 19: 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 20: 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 21: Appendix
Appendix PagerDuty
Slide 22: 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 23: Reconciliation
Reconciliation PagerDuty, Inc. Reconciliation of GAAP to Non-GAAP Data (in thousands, except percentages and per share data) (unaudited) Three months ended July 31 Year Ended January 31 2024 2023 2024 2023 2022 Non-GAAP gross profit and non-GAAP gross margin Gross profit $95,855 $87,783 $352,867 $30
Slide 24: 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 July 31 Year Ended January 31 2024 2023 2024 2023 2022 Non-GAAP sales and marketing Sales and marketing $50,966 $49,724 $196,769 $195,62
Slide 25: 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 July 31 Year Ended January 31 2024 2023 2024 2023 2022 Non-GAAP net income (loss) attributable to PagerDuty, Inc. common stockholders Net
Slide 26: 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 July 31 Year Ended January 31 2024 2023 2024 2023 2022 Free cash flow and free cash flow margin Net cash provided by (used in) operating a