PagerDuty adds 6% as results top consensus; analysts raise numbers

By Senad Karaahmetovic

PagerDuty (NYSE:) shares are trading about 6% higher in premarket Thursday after the company reported better-than-expected Q4 results and offered a positive outlook.

PagerDuty Q4 EPS of $0.08 on revenue of $101 million, beating the average analyst consensus for earnings of $0.02 on revenue of $99.1M.

“We continue to combine durable growth with operating margin expansion and innovation.” said Jennifer Tejada, chairperson and CEO at PagerDuty.

For this quarter, the company sees EPS in the range of $0.09-0.10 on revenue of $102M-$104M, which compares to the consensus for EPS of $0.03 on revenue of $104.8M.

For FY24, EPS is seen at $0.46 (midpoint) on revenue of $449M (midpoint). Analysts were looking for a profit per share of $0.20 on revenue of $451.4M.

TDCowen analysts said that the company continues to show “impressive resiliency.” They hiked the price target by $2 per share to $35.

“While co’s are becoming more measured w/ seat purchases, PD’s pivot to a transactional land & expand cadence is helping offset this & sustain strong velocity of deals,” they said in a note.

Morgan Stanley analysts argue that the Q4 results were “a big step forward towards becoming a Rule of 40 company.”

“Management is making good progress on its ambition to become a Rule of 40% company as FY24 rev outlook of 20- 22% was inline with consensus but operating margin of 8-9% was well ahead. With shares trading at just 4.6x CY24 revenue and profitability set to improve further we stay OW,” they said.