Pagerduty, Inc. · NYSE:PD
Pagerduty — Q1 FY2024 Earnings Presentation
26 slides from Pagerduty's earnings presentation, Jun 1, 2023
Slide 1: Investor presentation Q1 FY 2024
Investor presentation Q1 FY 2024 Period ended April 30, 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
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: Digital drives sustained demand
Digital drives sustained demand Digital first: Characteristics Digital Cloud DevOps acceleration adoption transformation Service Event Intelligence, Real time work Broad ecosystem Orchestration ownership Automation, and Analytics
Slide 6: 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 7: Monitoring & Observability integrations
Monitoring & 700+ Customer Service Observability 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 8: First quarter innovations
First quarter innovations PagerDuty PagerDuty Process PagerDuty Incident Workflows Automation AIOPs PagerDuty Incident Workflows PagerDuty Process Automation PagerDuty AIOPs is our first empower teams with sophisticated addresses the sprawl of IT consumption-based pricing automation capabilities to
Slide 9: How we do it
How we do it 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 10: PagerDuty helps Hyland free up time to focus on innovation
PagerDuty helps Hyland free up time to focus on innovation About Hyland is an American multinational corporation headquartered in Westlake, Challenges Solution Results OH. Its enterprise information platform, OnBase, centralizes business content in one secure location. – Struggled to get – PagerDuty
Slide 11: The Operations Cloud Journey
The Operations Cloud Journey Land: PagerDuty Incident Add on:: PagerDuty AIOPs: Land: PagerDuty Process Land: PagerDuty for Response consumption pricing, starting at Automation Self-managed Customer Service $4,788/year (contact for pricing) – Free – Professional $252 per user/year – Professional $25
Slide 12: 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 13: Innovation driven land-and-expand model
Innovation driven land-and-expand model Expansion Motion at a Major Financial Institution A leading financial services organization relies on PagerDuty to increase workforce efficiency, critical application uptime, and Thousands 7-figure expansion operating leverage. Value captured includes, reduced
Slide 14: Underpenetrated, fragmented market opportunity
Underpenetrated, fragmented market opportunity 75 million users by persona (estimated) in 2022 Developers: driven by digital services and software-driven innovation → 25m users Infrastructure and Operations: undergoing modernization with Digital, Cloud adoption, and DevOps → 21m users Customer Servi
Slide 15: Enterprises are early in Digital Operations Maturity
Enterprises are early in Digital Operations Maturity Operational Maturity Manual Reactive Responsive Proactive Preventative Issues are identified Always in Resolving issues Seamless, coordinated Ahead of issues by customers not by firefighting mode. as they occur. issue management. before they start
Slide 16: Focus on environmental, social and governance
Focus on environmental, social and governance 90% of our employees cite social impact as making them proud to work at PagerDuty (top Net Promoter Score for the company, second consecutive year) PagerDuty.org works with mission-driven organizations to advance justice and health by mobilizing our prod
Slide 17: Financials
Financials PagerDuty
Slide 18: Select operating metrics
Select operating metrics FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 Revenue $85 $90 $94 $101 $103 Revenue Growth 34% 34% 31% 29% 21% Non-GAAP Operating Margin (3%) (4%) 3% 6% 16% DBNR 126% 124% 123% 120% 116% Paid Customers 15,040 15,174 15,265 15,244 15,089 Customers >$100K 655 689 710 752 764
Slide 19: Non-GAAP target operating model
Non-GAAP target operating model % of Revenue FY20 FY21 FY22 FY23 Q1 FY24 Target Gross Margin 86% 87% 85% 85% 87% 85% Sales & Marketing 53% 50% 50% 43% 36% 35% Research & 26% 25% 25% 24% 22% 20% Development General & 24% 21% 19% 17% 13% 10% Administrative Operating Margin (17%) (8%) (8%) 1% 16% 20%
Slide 20: 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 21: Appendix
PagerDuty Appendix
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 April 30 Year Ended January 31 2023 2022 2023 2022 2021 Reconciliation of gross profit and gross margin GAAP gross profit $85,310 $69,655 $300,3
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 April 30 Year Ended January 31 2023 2022 2023 2022 2021 GAAP sales and marketing $43,801 $45,552 $195,622 $161,624 $122,155 Less: Stock-ba
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 April 30 Year Ended January 31 2023 2022 2023 2022 2021 Reconciliation of net loss attributable to PagerDuty, Inc. GAAP net loss attributa
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) Free Cash Flow Three Months Ended April 30 Year Ended January 31 2023 2022 2023 2022 2021 Net cash provided by (used in) operating activities $22,152 $(2,985