Pagerduty, Inc. · NYSE:PD
Pagerduty — Q4 FY2023 Earnings Presentation
24 slides from Pagerduty's earnings presentation, Mar 15, 2023
Slide 1: Investor presentation Q4 FY 2023
Investor presentation Q4 FY 2023 Period ended January 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
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, Customer Service integrations
Monitoring & Customer Service Observability 700+ integrations Reduce MTTR by 25% Security Business Ops & IoT DevOps & Lifecycle ChatOps & Collaboration DataOps ITOps & ITSM Higher customer 50% fewer satisfaction per incidents case
Slide 8: Recent innovations
Recent innovations PagerDuty PagerDuty PagerDuty for Incident Workflows Status Pages Customer Service PagerDuty Incident Workflows PagerDuty Status Pages enable With PagerDuty’s integrated, empower teams with brands to proactively inform and real-time customer service sophisticated automation assist
Slide 9: Plans for the Digital Operations Journey
Plans for the Digital Operations Journey Land: PagerDuty Incident Add on: PagerDuty Event Land: PagerDuty Process Land: PagerDuty for Response Intelligence, $288 per user/year Automation Self-managed Customer Service (contact for pricing) – Free – Professional $252 per user/year Add on: PagerDuty Au
Slide 10: 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 11: 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 7-figure expansion efficiency, critical application uptime, and Thousands operating leverage. Gold Services attached Value cap
Slide 12: 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 13: 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 14: 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 95% of Dutonians mo
Slide 15: Financials
Financials PagerDuty
Slide 16: Select operating metrics
Select operating metrics FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 Revenue $79 $85 $90 $94 $101 Revenue Growth 32% 34% 34% 31% 29% Non-GAAP Operating Margin (3%) (3%) (4%) 3% 6% DBNR 124% 126% 124% 123% 120% Paid Customers 14,865 15,040 15,174 15,265 15,244 Customers >$100K 594 655 689 710 752
Slide 17: Non-GAAP target operating model
Non-GAAP target operating model % of Revenue FY20 FY21 FY22 FY23 Target Gross Margin 86% 87% 85% 85% 85% Sales & Marketing 53% 50% 50% 43% 35% Research & Development 26% 25% 25% 24% 20% General & Administrative 24% 21% 19% 17% 10% Operating Margin (17%) (8%) (8%) 1% 20%
Slide 18: 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 19: Appendix
PagerDuty Appendix
Slide 20: 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 21: 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 2023 2022 2023 2022 2021 Reconciliation of gross profit and gross margin GAAP gross profit $82,622 $64,581 $300
Slide 22: 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 2023 2022 2023 2022 2021 GAAP sales and marketing $52,621 $43,400 $195,622 $161,624 $122,155 Less: Stock-
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 2023 2022 2023 2022 2021 Reconciliation of net loss GAAP net loss attributable to PagerDuty, Inc. $(24,56
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) Free Cash Flow Three Months Ended January 31 Year Ended January 31 2023 2022 2023 2022 2021 Net cash provided (used in) by operating activities $17,572 $1,34