Pagerduty, Inc. · NYSE:PD
Pagerduty — Q4 FY2024 Earnings Presentation
28 slides from Pagerduty's earnings presentation, Mar 14, 2024
Slide 1: Investor presentation Q4 and FY 2024
Investor presentation Q4 and FY 2024 Period ended January 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 overview
PagerDuty overview Strong Durable Scaled Non-GAAP scale revenue growth adoption profitable $111m 16% 15,039 10% Quarter ended Revenue growth YoY Paid customers as of Q4’24 Non-GAAP January 31, 2024 through Q4’24 January 31, 2024 Operating Margin See appendix for GAAP to non-GAAP reconciliation
Slide 5: PagerDuty's Operations Cloud: Addressing customers' critical business priorities
PagerDuty’s Operations Cloud: Addressing customers’ critical business priorities Enterprise priorities PagerDuty delivers 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 ac
Slide 6: 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 incidents case
Slide 7: The Operations Cloud product pillars
The Operations Cloud product 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 – Profess
Slide 8: 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 9: 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 ~$38B Automation innovation → 25m users Infrastructure and Operations: undergoing modernization with Digital, Cloud
Slide 10: 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 <$50m digital sales Strong upsell motion with 62% of ARR coming from customers with two or m
Slide 11: Innovation-driven land-and-expand model
Innovation-driven land-and-expand model Expanded product Expansion Motion at a mix and purchase A leading financial services organization relies on Major Financial Institution sets for international business needs PagerDuty to increase workforce efficiency, critical application uptime, and operating le
Slide 12: Momentum in the enterprise segment
Momentum in the enterprise segment: Million-dollar ARR customers continue to expand Operations Expanding reach Technology Increasing ARR is Cloud traction within the enterprise recognized as a earned by driving with adoption value driver for delivering proven multi-product, across business driving i
Slide 13: Recent key accomplishments
Recent key accomplishments Product innovation – Released PagerDuty Process AutomationSM as part of the PagerDuty Operations Cloud to enable organizations to orchestrate automation across secure cloud and data center environments – Introduced PagerDuty AIOps to address large-scale event correlation,
Slide 14: Focus on Global Impact
Strong employee commitment Focus on Global Impact to giving back Nearly 100% participation in volunteering, giving, or employee match points to an actively engaged workforce Top Bay Area philanthropist Recognized as one of the top 100 corporate philanthropies in the Bay Area for the second consecuti
Slide 15: Financials
Financials PagerDuty
Slide 16: Select operating metrics
Select operating metrics FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 Revenue ($m) $101 $103 $108 $109 $111 Revenue Growth 29% 21% 19% 15% 10% Non-GAAP Operating Margin 6% 16% 13% 14% 10% DBNR 120% 116% 114% 110% 107% Paid Customers 15,244 15,089 15,146 15,049 15,039 Customers >$100K 752 764 773 778 804
Slide 17: Non-GAAP target operating model
Non-GAAP target operating model % of Revenue FY20 FY21 FY22 FY23 FY24 Target Gross Margin 86% 87% 85% 85% 86% 85% Sales & Marketing 53% 50% 50% 43% 38% 35% Research & 26% 25% 25% 24% 22% 20% Development General & 24% 21% 19% 17% 13% 10% Administrative Operating Margin (17%) (8%) (8%) 1% 13% 20% See
Slide 18: Our mission at PagerDuty is to revolutionize operations
Our mission at PagerDuty is to revolutionize operations and build customer trust by anticipating the unexpected in an unpredictable world.
Slide 19: 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 20: Appendix
Appendix PagerDuty
Slide 21: 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 22: Reconciliation
Reconciliation PagerDuty, Inc. Reconciliation of GAAP to Non-GAAP Data (in thousands, except percentages and per share data) (unaudited) Three Months Ended January 31 Year Ended January 31 2024 2023 2024 2023 2022 Reconciliation of gross profit and gross margin GAAP gross profit $90,759 $82,622 $352,8
Slide 23: 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 January 31 Year Ended January 31 2024 2023 2024 2023 2022 GAAP sales and marketing $53,614 $52,621 $196,769 $195,622 $161,624 Less: Stock-
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 January 31 Year Ended January 31 2024 2023 2024 2023 2022 Reconciliation of net loss attributable to PagerDuty, Inc. GAAP net loss attribu
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) Free Cash Flow Three Months Ended January 31 Year Ended January 31 2024 2023 2024 2023 2022 Net cash provided by (used in) operating activities $22,155 $17,5
Slide 26: Appendix
Appendix PagerDuty
Slide 27: 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 28: Observability tools used
66% of organizations have more than 10 observability tools Total observability tools used 11-15 to collect data from application 46% environment 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%