Pagerduty, Inc. · NYSE:PD
Pagerduty — Q3 FY2025 Earnings Presentation
27 slides from Pagerduty's earnings presentation, Nov 26, 2024
Slide 1: Investor presentation Q3 2025
Investor presentation Q3 2025 Period ended October 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 unpredictabl
Slide 4: PagerDuty Q3 overview
PagerDuty Q3 overview Quarterly Year-over-Year Non-GAAP Paid customers revenue revenue growth operating margin $119m 9% 15,050 21% 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 Platform for Operational Transformation
The Platform for Operational Transformation Digital Operations Resiliency Automation Standardization Scaled Service & CoE Ownership Remote Location Incident Management Operations Automation Transformation Operations Center Customer Experience Modernization Operations 700+ Foundational No-Code to Pro
Slide 7: The PagerDuty Operations Cloud
The PagerDuty Operations Cloud Monitoring & Customer Service Observability 700+ integrations Reduce MTTR by 25% Security Business Ops & IoT Automation AI Foundations 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 $8,388/year $1,500 per user/year + Cloud – Professional $252 per user/year – Professional $252 per user/year Platform fee – Business
Slide 9: Forrester total economic impact study
Forrester total economic impact study PagerDuty is an essential partner to build resilient and efficient operations 249% <12 months Return on investment Payback (ROI) over three years Source: Forrester Consulting: The Total Economic Impact of the PagerDuty Operations Cloud. August 2024 https://www.pag
Slide 10: PagerDuty is a market leader
PagerDuty is a market leader PagerDuty has been recognized as a Leader in the 2024 GigaOm Radar for AIOps. This is PagerDuty’s third consecutive year being recognized as a Leader in this report. Correlation & Causation Automated Remediation Workflow Integration Ease of Deployment Read the full report
Slide 11: 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 with Digital, Cloud
Slide 12: 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 13: 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 14: Innovation-driven land-and-expand model
Innovation-driven land-and-expand model PagerDuty became the incident response standard platform A leading financial services organization relies on Expansion motion at a PagerDuty to increase workforce efficiency, critical major financial institution Expanded product application uptime, and operating l
Slide 15: Momentum in the enterprise segment
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 16: Focus on Global Impact
PagerDuty Focus on Global Impact / PagerDuty
Slide 17: Financials
Financials PagerDuty
Slide 18: Select operating metrics
Select operating metrics FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 Revenue (millions) $109 $111 $111 $116 $119 Revenue Growth 15% 10% 8% 8% 9% Non-GAAP Operating Margin 14% 10% 14% 17% 21% DBNR 110% 107% 106% 106% 107% Paid Customers 15,049 15,039 15,120 15,044 15,050 Customers >$100K 778 804 811 820
Slide 19: Non-GAAP target operating model
Non-GAAP target operating model % of Revenue FY20 FY21 FY22 FY23 FY24 Q3’FY25 Target Gross Margin 86% 87% 85% 85% 86% 86% 85% Sales & Marketing 53% 50% 50% 43% 38% 34% 35% Research & 26% 25% 25% 24% 22% 19% 20% Development General & 24% 21% 19% 17% 13% 12% 10% Administrative Operating Margin (17%) (
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: Investment highlights
Investment highlights Real-time leading operations Comprehensive product offerings to optimize operating efficiency cloud platform and offer tangible ROI Customer-driven demand across business operations and Significant market opportunity industrial operations Strong enterprise demand with opportunity to
Slide 22: Appendix
Appendix PagerDuty
Slide 23: 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 access
Slide 24: 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, 2024 2023 2024 2023 2022 Non-GAAP gross profit and non-GAAP gross margin Gross profit $98,678 $89,015 $352,86
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 October 31, Year Ended January 31, 2024 2023 2024 2023 2022 Non-GAAP sales and marketing Sales and marketing $49,272 $49,630 $196,769 $195
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 October 31, Year Ended January 31, 2024 2023 2024 2023 2022 Non-GAAP net income (loss) attributable to PagerDuty, Inc. common stockholders
Slide 27: 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, 2024 2023 2024 2023 2022 Free cash flow an dfree cash flow margin Net cash provided by (used in) operat