US Market News
1月前
PagerDuty Announces First Quarter Fiscal 2027 Financial ResultsMay 28, 2026 4:05 PM
Business Wire First quarter revenue increased 1% year over year to $121 million Annual Recurring Revenue ("ARR") remained flat year over year at $496 million First quarter operating income was $9 million; non-GAAP operating income was $30 million Net income was $10 million, representing the fourth consecutive quarter of GAAP profitability Announced $100 million share repurchase program John DiLullo named as Chief Executive Officer and Jennifer Tejada transitions to Executive Chair of Board of Directors PagerDuty, Inc. (NYSE:PD), a leader in AI-first operations management, today announced financial results for the first quarter of fiscal 2027, ended April 30, 2026. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260528962339/en/ “Our Q1 results exceeded guidance for both revenue and non-GAAP operating margin, reflecting continued execution against our strategic and operational priorities,” said Jennifer Tejada, Executive Chair, PagerDuty. “Our expanding AI offers and the introduction of the new Operations Cloud usage-based package, further strengthens our platform and positions PagerDuty to accelerate long-term growth.” Tejada continued, “John is off to a great start in leading PagerDuty through its next chapter with a strong foundation, meaningful product and business momentum and a significant opportunity ahead.” First Quarter Fiscal 2027 Financial Highlights Revenue was $121.0 million, an increase of 1.0% year over year. Operating income was $9.2 million; operating margin was 7.6%. Non-GAAP operating income was $29.7 million; non-GAAP operating margin was 24.6%. Net income was $10.2 million, representing the Company's fourth consecutive quarter of GAAP profitability. Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.13. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.32. Net cash provided by operating activities was $44.3 million; free cash flow was $41.2 million. Cash, cash equivalents, and investments were $444.0 million as of April 30, 2026. The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between GAAP and non-GAAP financial information. First Quarter and Recent Highlights ARR as of April 30, 2026 remained flat year over year at $496 million. Customers with ARR over $100 thousand grew 1% to 860 as of April 30, 2026, compared to 848 as of April 30, 2025. Dollar-based net retention rate was 97% as of April 30, 2026, compared to 104% as of April 30, 2025. Total paid customers were 15,380 as of April 30, 2026, compared to 15,247 as of April 30, 2025. Paid and free customers totaled more than 36,000 as of April 30, 2026, representing approximately 14% growth since April 30, 2025. Remaining performance obligations were $441 million as of April 30, 2026. Of this amount, the Company expects to recognize revenue of approximately $316 million, or 72%, over the next 12 months, $100 million, or 23%, over months 13 to 24, and the remainder thereafter. Lands and expands include: The Boston Consulting Group, Coreweave, Inc., The Gap, Inc., General Motors Company, LightSpun, Palo Alto Networks, Inc., and Vodafone Group Public Limited Company. Appointed John DiLullo as Chief Executive Officer and announced Jennifer Tejada’s transition to Executive Chair of Board of Directors after serving as CEO since 2016. Announced the expansion of PagerDuty’s AI integration ecosystem, with strategic partnerships with Anthropic, Cursor, and LangChain. Announced enhancements to the PagerDuty Advance SRE Agent. Features new automated triage capabilities triggered directly from a team’s automated workflows to accelerate incident response. Named a Leader and Outperformer in 2026 Gigaom Radar for IT Incident Response Platforms for Fourth Consecutive Year. Published the 2026 State of AI-First Operations Report, which illustrates how the financial state of extended service disruption has made operational resilience a top priority. Approved for the 2026 Trust Radius - Trusted Seller verification marking PagerDuty as one of the elite companies on TrustRadius. Named a finalist for the Best Technology for Good Initiative Category in the 2026 Halo Awards. Received silver in the 2026 American Business Awards for Corporate Social Responsibility Program of the Year. Recognized as a finalist for six Inspiring Workplaces in 2026: Latin America, Europe, UK & Ireland, North America, Australia & New Zealand, and Asia. Announced PagerDuty’s latest Impact cohort including grants to eight nonprofits focused on healthcare, humanitarian and crisis-response. Financial Outlook For the second quarter of fiscal 2027, PagerDuty currently expects: Total revenue of $122.0 million - $124.0 million. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.29 - $0.31 assuming approximately 78 million diluted shares and a non-GAAP tax rate of 20%. For the full fiscal year 2027, PagerDuty currently expects: Total revenue of $488.5 million - $496.5 million, consistent with previous guidance. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $1.27 - $1.32 (up from $1.23 - $1.28) assuming approximately 79 million diluted shares and a non-GAAP tax rate of 20%. These statements are forward-looking and actual results may differ materially. Please refer to the section titled "Forward-Looking Statements" below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. PagerDuty has not reconciled its expectations as to non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders to GAAP net loss per share attributable to PagerDuty, Inc. common stockholders because certain reconciling items such as stock-based compensation expense, employer taxes related to employee stock transactions, acquisition-related expenses, restructuring costs, gains or losses on extinguishment of convertible senior notes, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments are out of PagerDuty's control or cannot be reasonably predicted. Accordingly, such reconciliation is not available without unreasonable effort. However, it is important to note that these reconciling items could have a significant effect on PagerDuty's future GAAP results. Conference Call Information PagerDuty will host a conference call and live webcast (Zoom meeting ID 977 8380 9980) for analysts and investors at 2:00 p.m. Pacific Time on May 28, 2026. For audio only, the dial-in number 1-312-626-6799 may be used. This news release with the financial results will be accessible from PagerDuty’s website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com. Supplemental Financial and Other Information Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s LinkedIn account (https://www.linkedin.com/company/482819), X (formerly Twitter) account @pagerduty, and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts. Forward-Looking Statements This press release and the related webcast contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial and operational performance and outlook, and strategies, objectives, opportunity, expectations and market positioning. Words such as “expect,” “extend,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “accelerate,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 12, 2026. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2026 and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to maintain or increase profitability; our ability to sustain or increase growth and effectively manage changes in our business and industry; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our ability to attract and retain executives and employees we need to support our operations and growth; our dependence on a majority of our revenue from a single product; our ability to compete effectively in an increasingly competitive market; the impact of seasonality on our business; our ability to adapt and respond effectively to rapidly developing technology; our ability to effectively develop and expand our marketing and sales capacities; our ability to enhance and improve our platform or develop new functionality or use cases; the effect of unfavorable conditions in our industry or the global economy, or reductions in information technology spending, on our business and results of operations; adverse consequences that could arise as a result of international trade policies, geopolitical developments, and macroeconomic conditions, including tariffs, sanctions, trade barriers and global instability; the accuracy of our estimates of market opportunity and forecasts of market growth; our assumptions and limitations to which ARR and certain other operational data are subject that may cause such metrics to not provide an accurate indication of actual performance or future results; adverse consequences that could result from any compromise of our information technology systems or those of third parties with whom we work or our data; adverse consequences that could result from any interruptions or delays in performance of our service; and our ability to maintain the compatibility of our platform with third party applications that our customers use in their businesses. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release and the related webcast represent our views as of the date of this press release and the related webcast. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release and the related webcast. About PagerDuty, Inc. PagerDuty, Inc. (NYSE: PD) is the global leader in AI-first digital operations. By automatically detecting, diagnosing, and remediating issues, the PagerDuty Operations Cloud acts as the central control plane for the modern enterprise - orchestrating AI agents and automated workflows with context from over 750 integrations. Trusted by approximately two-thirds of the Fortune 100 and nearly half of the Fortune 500, PagerDuty is the industry standard for organizations scaling resilient, autonomous operations. Learn more and try it for free at www.pagerduty.com. The PagerDuty Operations Cloud The PagerDuty Operations Cloud is an AI-powered platform that automates and orchestrates the entire incident management lifecycle - from detection to resolution, providing resilience at scale. Designed for mission-critical operations, the platform empowers teams to identify and diagnose disruptions in real time, mobilizing the right teams to quickly streamline workflows to solve digital issues before they become incidents. The PagerDuty Operations Cloud is essential for delivering flawless, always-on digital experiences that organizations and consumers expect today. PAGERDUTY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited) Three months ended April 30, 2026 2025 Revenue $ 120,967 $ 119,805 Cost of revenue(1) 19,020 19,184 Gross profit 101,947 100,621 Operating expenses: Research and development(1) 29,988 34,048 Sales and marketing(1) 39,610 50,045 General and administrative(1) 23,166 26,855 Total operating expenses 92,764 110,948 Income (loss) from operations 9,183 (10,327 ) Interest income 3,926 6,011 Interest expense (2,107 ) (2,364 ) Other (expense) income, net (71 ) 114 Income (loss) before provision for income taxes 10,931 (6,566 ) Provision for income taxes 5,801 813 Net income (loss) $ 5,130 $ (7,379 ) Net loss attributable to redeemable non-controlling interest (153 ) (217 ) Net income (loss) attributable to PagerDuty, Inc. $ 5,283 $ (7,162 ) Less: Adjustment attributable to redeemable non-controlling interest (4,963 ) (665 ) Net income (loss) attributable to PagerDuty, Inc. common stockholders $ 10,246 $ (6,497 ) Weighted-average shares used in calculating net income (loss) per share: Basic 78,647 91,374 Diluted 79,464 91,374 Net income (loss) per share attributable to PagerDuty, Inc. common stockholders Basic $ 0.13 $ (0.07 ) Diluted $ 0.13 $ (0.07 ) (1) Includes stock-based compensation expense as follows: Three months ended April 30, 2026 2025 Cost of revenue $ 849 $ 1,097 Research and development 6,137 9,840 Sales and marketing 4,184 6,219 General and administrative 6,793 8,597 Total $ 17,963 $ 25,753 PAGERDUTY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited) April 30, 2026 January 31, 2026 Assets Current assets: Cash and cash equivalents $ 208,880 $ 237,402 Investments 235,077 232,436 Accounts receivable, net of allowance for credit losses of $693 and $1,175 as of April 30, 2026 and January 31, 2026, respectively 76,025 108,430 Deferred contract costs, current 18,181 18,401 Prepaid expenses and other current assets 20,867 15,570 Total current assets 559,030 612,239 Property and equipment, net 31,938 29,192 Deferred contract costs, non-current 24,681 25,010 Lease right-of-use assets 11,516 12,509 Goodwill 137,401 137,401 Intangible assets, net 14,705 15,645 Deferred tax assets 153,657 153,657 Other assets 3,664 4,862 Total assets $ 936,592 $ 990,515 Liabilities, redeemable non-controlling interest, and stockholders’ equity Current liabilities: Accounts payable $ 4,438 $ 6,718 Accrued expenses and other current liabilities 15,240 19,868 Accrued compensation 21,465 25,856 Deferred revenue, current 240,620 246,451 Lease liabilities, current 5,249 5,000 Total current liabilities 287,012 303,893 Convertible senior notes, net, non-current 396,327 395,729 Deferred revenue, non-current 2,747 2,483 Lease liabilities, non-current 11,174 12,598 Other liabilities 10,845 5,147 Total liabilities 708,105 719,850 Redeemable non-controlling interest 11,956 17,072 Stockholders' equity Common stock — — Additional paid-in capital 633,760 679,410 Accumulated other comprehensive loss (715 ) (183 ) Accumulated deficit (416,514 ) (421,797 ) Treasury stock — (3,837 ) Total stockholders’ equity 216,531 253,593 Total liabilities, redeemable non-controlling interest, and stockholders' equity $ 936,592 $ 990,515 PAGERDUTY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited) Three months ended April 30, 2026 2025 Cash flows from operating activities: Net income (loss) attributable to PagerDuty, Inc. common stockholders $ 10,246 $ (6,497 ) Net loss and adjustment attributable to redeemable non-controlling interest (5,116 ) (882 ) Net income (loss) 5,130 (7,379 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,056 3,962 Amortization of deferred contract costs 5,201 5,514 Amortization of debt issuance costs 595 677 Stock-based compensation 17,963 25,753 Non-cash lease expense 985 379 Deferred income taxes 5,736 162 Other (595 ) (811 ) Changes in operating assets and liabilities: Accounts receivable 32,618 27,610 Deferred contract costs (4,693 ) (4,579 ) Prepaid expenses and other assets (5,045 ) (3,316 ) Accounts payable (2,825 ) 103 Accrued expenses and other liabilities (2,803 ) (1,973 ) Accrued compensation (4,493 ) (8,336 ) Deferred revenue (5,380 ) (6,411 ) Lease liabilities (1,167 ) (685 ) Net cash provided by operating activities 44,283 30,670 Cash flows from investing activities: Purchases of property and equipment (965 ) (441 ) Capitalized software costs (2,126 ) (1,243 ) Purchases of available-for-sale investments (40,296 ) (44,148 ) Proceeds from maturities of available-for-sale investments 37,420 44,400 Purchases of non-marketable equity investments — (250 ) Proceeds from liquidation of non-marketable equity investments 894 — Net cash used in investing activities (5,073 ) (1,682 ) Cash flows from financing activities: Repurchases of common stock (65,456 ) — Proceeds from issuance of common stock upon exercise of stock options 4 3,602 Employee payroll taxes paid related to net share settlement of restricted stock units (2,156 ) (7,557 ) Net cash used in financing activities (67,608 ) (3,955 ) Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash (124 ) 335 Net change in cash, cash equivalents, and restricted cash (28,522 ) 25,368 Cash, cash equivalents, and restricted cash at beginning of period 238,481 348,328 Cash, cash equivalents, and restricted cash at end of period $ 209,959 $ 373,696 Note: Certain reclassifications of prior period amounts have been made in the Company’s condensed consolidated statements of cash flows to conform to the current period presentation. Refer to the notes to our Quarterly Report on Form 10-Q for more information. Non-GAAP Financial Measures This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to PagerDuty, Inc. common stockholders, non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders, free cash flow, and free cash flow margin. PagerDuty believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and can assist in comparisons with other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in PagerDuty’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by PagerDuty’s management about which expenses and income are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP. Specifically, PagerDuty excludes the following from its historical and prospective non-GAAP financial measures, as applicable: Stock-based compensation: PagerDuty utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period. Employer taxes related to employee stock transactions: PagerDuty views the amount of employer taxes related to its employee stock transactions as an expense that is dependent on its stock price, employee exercise and other award disposition activity, and other factors that are beyond PagerDuty’s control. As a result, employer taxes related to employee stock transactions vary for reasons that are generally unrelated to financial and operational performance in any particular period. Amortization of acquired intangible assets: PagerDuty views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period. Acquisition-related expenses: PagerDuty views acquisition-related expenses, such as transaction costs, acquisition-related retention payments, and acquisition-related asset impairment, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses. Amortization of debt issuance costs: The imputed interest rates of the Company's convertible senior notes (the "2025 Notes" and the "2028 Notes" or, collectively, the "Notes") was approximately 1.91% for the 2025 Notes and 2.13% for the 2028 Notes. This is a result of the debt issuance costs, which reduce the carrying value of the convertible debt instruments. The debt issuance costs are amortized as interest expense. The expense for the amortization of the debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods. Restructuring costs: PagerDuty views restructuring costs, such as employee severance-related costs as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses. Shareholder matters: PagerDuty views certain charges, including third-party legal, consulting, and advisory fees, related to shareholder activity that are outside of the ordinary course of our business and expenses related to a cooperation agreement as events that are not necessarily reflective of operational performance during a period. PagerDuty believes that such charges do not have a direct correlation to the operations of the Company’s business and may vary in size depending on the timing, results, and resolution of such shareholder matters. The consideration of measures that exclude such expenses can assist in the comparison of operational performance in periods which may or may not include such expenses. Adjustment attributable to redeemable non-controlling interest: PagerDuty adjusts the value of redeemable non-controlling interest of its joint venture PagerDuty K.K. according to the operating agreement. PagerDuty believes this adjustment is not reflective of operational performance during a period and exclusion of such adjustments can assist in comparison of operational performance in different periods. Income tax effects and adjustments: Based on PagerDuty's financial outlook for fiscal 2027, PagerDuty is utilizing a projected non-GAAP tax rate of 20%. For fiscal 2026, PagerDuty used a projected non-GAAP tax rate of 22%. PagerDuty uses a projected non-GAAP tax rate in order to provide better consistency across the interim reporting periods by eliminating the impact of non-recurring and period specific items, which can vary in size and frequency. PagerDuty's estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that PagerDuty believes materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Non-GAAP gross profit and non-GAAP gross margin We define non-GAAP gross profit as gross profit excluding the following expenses typically included in cost of revenue: stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, and restructuring costs. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue. Non-GAAP operating expenses We define non-GAAP operating expenses as operating expenses excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, and shareholder matters, which are not necessarily reflective of operational performance during a given period. Non-GAAP operating income and non-GAAP operating margin We define non-GAAP operating income as income (loss) from operations excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, and shareholder matters, which are not necessarily reflective of operational performance during a given period. We define non-GAAP operating margin as non-GAAP operating income as a percentage of revenue. Non-GAAP net income attributable to PagerDuty, Inc. common stockholders We define non-GAAP net income attributable to PagerDuty, Inc. common stockholders as net income (loss) attributable to PagerDuty, Inc. common stockholders excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, shareholder matters, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments, which are not necessarily reflective of operational performance during a given period. Non-GAAP net income per share, basic and diluted We define non-GAAP net income per share, basic as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average shares outstanding at the end of the reporting period. We define non-GAAP net income per share, diluted as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average diluted shares outstanding at the end of the reporting period. Free cash flow and free cash flow margin We define free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment and capitalization of software costs. We define free cash flow margin as free cash flow as a percentage of revenue. In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives. A limitation of the utility of free cash flow as a measure of our liquidity is that it does not represent the total increase or decrease in our cash balance for the period. We use free cash flow in conjunction with traditional U.S. GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies. There are a number of limitations related to the use of free cash flow as compared to net cash provided by operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made. PagerDuty encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate PagerDuty’s business. Please see the reconciliation tables at the end of this release for the reconciliation of non-GAAP financial measures to their most-comparable GAAP financial measures. PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except percentages and per share data)
(unaudited) Three months ended April 30, 2026 2025 Non-GAAP gross profit and non-GAAP gross margin Gross profit $ 101,947 $ 100,621 Add: Stock-based compensation 849 1,097 Employer taxes related to employee stock transactions 11 38 Amortization of acquired intangible assets 320 1,273 Restructuring costs 332 — Non-GAAP gross profit $ 103,459 $ 103,029 Revenue $ 120,967 $ 119,805 Gross margin 84.3 % 84.0 % Non-GAAP gross margin 85.5 % 86.0 % Non-GAAP operating expenses Research and development $ 29,988 $ 34,048 Less: Stock-based compensation 6,137 9,840 Employer taxes related to employee stock transactions 105 304 Acquisition-related expenses — 228 Restructuring costs — 1,373 Non-GAAP research and development $ 23,746 $ 22,303 Sales and marketing $ 39,610 $ 50,045 Less: Stock-based compensation 4,184 6,219 Employer taxes related to employee stock transactions 49 182 Amortization of acquired intangible assets 620 633 Restructuring costs 1,099 2,210 Non-GAAP sales and marketing $ 33,658 $ 40,801 General and administrative $ 23,166 $ 26,855 Less: Stock-based compensation 6,793 8,597 Employer taxes related to employee stock transactions 61 194 Restructuring costs — 228 Shareholder matters — 2,270 Non-GAAP general and administrative $ 16,312 $ 15,566 Note: Certain figures may not sum due to rounding. PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except percentages and per share data)
(unaudited) Three months ended April 30, 2026 2025 Non-GAAP operating income and non-GAAP operating margin Income (loss) from operations $ 9,183 $ (10,327 ) Add: Stock-based compensation 17,963 25,753 Employer taxes related to employee stock transactions 226 718 Amortization of acquired intangible assets 940 1,906 Acquisition-related expenses — 228 Restructuring costs 1,431 3,811 Shareholder matters — 2,270 Non-GAAP operating income $ 29,743 $ 24,359 Revenue $ 120,967 $ 119,805 Operating margin 7.6 % (8.6 )% Non-GAAP operating margin 24.6 % 20.3 % Non-GAAP net income attributable to PagerDuty, Inc. common stockholders Net income (loss) attributable to PagerDuty, Inc. common stockholders $ 10,246 $ (6,497 ) Add: Stock-based compensation 17,963 25,753 Employer taxes related to employee stock transactions 226 718 Amortization of debt issuance costs 595 677 Amortization of acquired intangible assets 940 1,906 Acquisition-related expenses — 228 Restructuring costs 1,431 3,811 Shareholder matters — 2,270 Adjustment attributable to redeemable non-controlling interest (4,963 ) (665 ) Income tax effects and adjustments (616 ) (5,522 ) Non-GAAP net income attributable to PagerDuty, Inc. common stockholders $ 25,822 $ 22,679 Non-GAAP net income per share, basic Net income (loss) per share attributable to PagerDuty, Inc. common stockholders $ 0.13 $ (0.07 ) Non-GAAP adjustments to net income (loss) per share attributable to PagerDuty, Inc. common stockholders 0.20 0.32 Non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders $ 0.33 $ 0.25 Non-GAAP net income per share, diluted Net income (loss) per share attributable to PagerDuty, Inc. common stockholders $ 0.13 $ (0.07 ) Non-GAAP adjustments to net income (loss) per share attributable to PagerDuty, Inc. common stockholders 0.20 0.31 Non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders $ 0.32 $ 0.24 Weighted-average shares used in calculating net income per share Basic 78,647 91,374 Diluted 79,464 91,374 Weighted-average shares used in calculating non-GAAP net income per share Basic 78,647 91,374 Diluted 79,464 93,656 Note: Certain figures may not sum due to rounding. PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except percentages)
(unaudited) Three months ended April 30, 2026 2025 Free cash flow and free cash flow margin Net cash provided by operating activities $ 44,283 $ 30,670 Purchases of property and equipment (965 ) (441 ) Capitalization of software costs (2,126 ) (1,243 ) Free cash flow $ 41,192 $ 28,986 Net cash used in investing activities $ (5,073 ) $ (1,682 ) Net cash used in financing activities $ (67,608 ) $ (3,955 ) Revenue $ 120,967 $ 119,805 Operating cash flow margin 36.6 % 25.6 % Free cash flow margin 34.1 % 24.2 % View source version on businesswire.com: https://www.businesswire.com/news/home/20260528962339/en/ Investor Relations Contact:
Paul Underwood
investor@pagerduty.com Media Contact:
Debbie O'Brien
media@pagerduty.com SOURCE PagerDuty Original: PagerDuty Announces First Quarter Fiscal 2027 Financial Results
US Market News
4月前
PagerDuty Announces Fourth Quarter and Full Year Fiscal 2026 Financial ResultsMarch 12, 2026 4:05 PM
Business Wire
Fourth quarter revenue increased 2.7% year over year to $125 million
Annual Recurring Revenue ("ARR") grew 1% year over year to $498.7 million
Fourth quarter operating income was $5 million; non-GAAP operating income was $30 million
Net income was $11.0 million, representing the third consecutive quarter of GAAP profitability
PagerDuty, Inc. (NYSE:PD), a leader in AI-first operations management, today announced financial results for the fourth quarter and full year of fiscal 2026 ended January 31, 2026.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260312052737/en/
“Fiscal 2026 was a transformational year for PagerDuty, marked by stabilized revenue retention, a top-end guidance beat with $493 million in revenue, and a 700-basis-point expansion in non-GAAP operating margin,” said Jennifer Tejada, Chairperson and CEO of PagerDuty. “Our results reflect PagerDuty’s role as the essential control plane for AI operations. With leading agentic offerings driving consumption growth across enterprise and AI-native segments, we have strengthened our core franchise and are well-positioned for durable, profitable growth.”
Fourth Quarter Fiscal 2026 Financial Highlights
Revenue was $124.8 million, an increase of 2.7% year over year.
Operating income was $4.5 million; operating margin was 3.6%.
Non-GAAP operating income was $29.8 million; non-GAAP operating margin was 23.9%.
Net income was $11.0 million, representing the Company's third consecutive quarter of GAAP profitability.
Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.12.
Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.29.
Net cash provided by operating activities was $25.4 million, with free cash flow of $22.6 million.
Full Year Fiscal 2026 Financial Highlights
Revenue was $492.5 million, an increase of 5.4% year over year.
Operating income was $5.8 million; operating margin was 1.2%.
Non-GAAP operating income was $121.1 million; non-GAAP operating margin was 24.6%.
Net income was $173.9 million, representing the Company's first full year of GAAP profitability.
Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $1.87.
Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $1.16.
Net cash provided by operating activities was $114.9 million, with free cash flow of $102.7 million.
Cash, cash equivalents, and investments were $469.8 million as of January 31, 2026.
The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between GAAP and non-GAAP financial information.
Fourth Quarter and Recent Highlights
Annual recurring revenue ("ARR") as of January 31, 2026 grew 1% year over year to $499 million.
Customers with ARR over $100 thousand grew 1% to 861 as of January 31, 2026, compared to 849 in the prior year.
Dollar-based net retention rate was 98% as of January 31, 2026, compared to 106% in the prior year.
Free and paid customers totaled more than 35,000 as of January 31, 2026 representing approximately 14% growth year over year.
Total paid customers were 15,351 as of January 31, 2026, compared to 15,114 in the prior year.
Remaining performance obligations were $449 million as of January 31, 2026. Of this amount, the Company expects to recognize revenue of approximately $314 million, or 70%, over the next 12 months, $106 million, or 24%, over months 13 to 24, and the remainder thereafter.
Appointed Scott Aronson to the Company's Board of Directors.
Appointed Chris Ferro as Chief Legal Officer.
PagerDuty Becomes Newest AWS Software Partner to Earn Resilience Competency.
Continued to deliver leading AI capabilities in the PagerDuty Operations Cloud Platform including Site Reliability Engineer Agent workflow integrations, AI Orchestrations (early access), and expanding ecosystem integrations.
Delivered greater value in the PagerDuty Operation Cloud Platform via new pricing and packaging to bring more automation, deeper insights, and a seamless Slack-first experience to teams at every level.
Named by Gartner as a Representative Vendor in two recent AI agents research reports, including its Market Guide for AI Site Reliability Engineering Tooling and Reference Architecture Brief.
Recognized in Gartner’s Innovation Insight: Cybersecurity Incident Response Management (CIRM) report - the second time this year Gartner has acknowledged PagerDuty’s relevance in security incident response.
Featured customer: SIRUM.
Lands and expands include: Anthropic, PBC; Equinix, Inc.; Lambda, Inc.; NVIDIA Corporation; and ZoomInfo Technologies Inc.
Announced event series in four cities globally including London, Tokyo, Sydney, and San Francisco for a day of connection and knowledge sharing.
Awarded as a two-time Silver Winner in the 5th Annual Anthem Award.
Named as finalist in the 2025 DevOps Dozen award for Best End-to-End DevOps Platform and Best Application of Generative AI in a DevOps Tool/Platform.
Shortlisted in the 2025/2026 Cloud Awards for Best Software-as-a-Service - USA (Enterprise), Best Cloud Automation Solution, and Best Use of AI in Cloud Computing.
Recognized on five of Built In's 2026 Best Places to Work U.S. lists, including #1 Best Places to Work in Atlanta and #1 Best Large Places to Work in San Francisco.
Financial Outlook
For the first quarter of fiscal 2027, PagerDuty currently expects:
Total revenue of $118.0 million - $120.0 million.
Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.23 - $0.25 assuming approximately 83 million diluted shares and a non-GAAP tax rate of 20%.
For the full fiscal year 2027, PagerDuty currently expects:
Total revenue of $488.5 million - $496.5 million.
Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $1.23 - $1.28 assuming approximately 81 million diluted shares and a non-GAAP tax rate of 20%.
These statements are forward-looking and actual results may differ materially. Please refer to the section titled "Forward-Looking Statements" below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
PagerDuty has not reconciled its expectations as to non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders to GAAP net loss per share attributable to PagerDuty, Inc. common stockholders because certain reconciling items such as stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, gains or losses on extinguishment of convertible senior notes, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments are out of PagerDuty's control or cannot be reasonably predicted. Accordingly, such reconciliation is not available without unreasonable effort. However, it is important to note that these reconciling items could have a significant effect on PagerDuty's future GAAP results.
Conference Call Information:
PagerDuty will host a conference call and live webcast (Zoom meeting ID 992 1279 8830) for analysts and investors at 2:00 p.m. Pacific Time on March 12, 2026. For audio only, the dial-in number 1-312-626-6799 may be used. This news release with the financial results will be accessible from PagerDuty’s website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com.
Supplemental Financial and Other Information:
Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s LinkedIn account (https://www.linkedin.com/company/482819), X (formerly Twitter) account @pagerduty, the X account @jenntejada and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts.
Forward-Looking Statements
This press release and the related webcast contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial and operational performance and outlook, and strategies, objectives, opportunity, expectations and market positioning. Words such as “expect,” “extend,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “accelerate,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 17, 2025 and our Quarterly Reports on Form 10-Qs filed with the SEC on May 30, 2025, September 4, 2025, and November 26, 2025. Additional information will be made available in our Annual Report on Form 10-K for the year ended January 31, 2026, which is expected to be filed with the SEC shortly after this release, and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to maintain or increase profitability; our ability to sustain or increase growth and effectively manage changes in our business and industry; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our dependence on a majority of our revenue from a single product; our ability to compete effectively in an increasingly competitive market; the impact of seasonality on our business; our ability to adapt and respond effectively to rapidly developing technology; our ability to effectively develop and expand our marketing and sales capacities; our ability to enhance and improve our platform or develop new functionality or use cases; the effect of unfavorable conditions in our industry or the global economy, or reductions in information technology spending, on our business and results of operations; adverse consequences that could arise as a result of international trade policies, geopolitical developments, and macroeconomic conditions, including tariffs, sanctions, trade barriers and global instability; the accuracy of our estimates of market opportunity and forecasts of market growth; our assumptions and limitations to which ARR and certain other operational data are subject that may cause such metrics to not provide an accurate indication of actual performance or future results; adverse consequences that could result from any compromise of our information technology systems or those of third parties with whom we work or our data; adverse consequences that could result from any interruptions or delays in performance of our service; and our ability to maintain the compatibility of our platform with third party applications that our customers use in their businesses.
Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release and the related webcast represent our views as of the date of this press release and the related webcast. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release and the related webcast.
About PagerDuty, Inc.
PagerDuty, Inc. (NYSE:PD) is the global leader in AI-first operations management serving more than 35,000 organizations worldwide. The PagerDuty Operations Cloud is a comprehensive, multi-product operations cloud platform that sits at the center of the enterprise technology stack. The Platform is a system of intelligence and action, ingesting signals from over 700 integrations, to orchestrate the right response across people, machines and software. Trusted by nearly half of the Fortune 500, half of the Forbes AI 50, and approximately two-thirds of the Fortune 100, PagerDuty is essential to delivering always-on digital experiences for modern businesses. Learn more and try it for free at www.pagerduty.com.
The PagerDuty Operations Cloud
The PagerDuty Operations Cloud is an AI-powered platform that automates and orchestrates the entire incident management lifecycle-from detection to resolution, providing resilience at scale. Designed for mission-critical operations, the platform empowers teams to identify and diagnose disruptions in real time, mobilize the right teams to quickly streamline workflows to solve digital issues before they become incidents. The PagerDuty Operations Cloud is essential for delivering flawless, always-on digital experiences that organizations and consumers expect today.
PAGERDUTY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three months ended January 31,
Year ended January 31,
2026
2025
2026
2025
Revenue
$
124,785
$
121,446
$
492,546
$
467,499
Cost of revenue(1)
17,600
19,974
74,142
79,665
Gross profit
107,185
101,472
418,404
387,834
Operating expenses:
Research and development(1)
32,574
34,611
126,937
141,489
Sales and marketing(1)
45,217
53,084
184,040
201,821
General and administrative(1)
24,872
25,496
101,587
104,296
Total operating expenses
102,663
113,191
412,564
447,606
Income (loss) from operations
4,522
(11,719
)
5,840
(59,772
)
Interest income
4,833
6,084
22,693
27,492
Interest expense
(2,107
)
(2,370
)
(8,857
)
(9,258
)
Other (expense) income, net
205
(427
)
489
(215
)
Income (loss) before (benefit from) provision for income taxes
7,453
(8,432
)
20,165
(41,753
)
(Benefit from) provision for income taxes
(1,819
)
448
(152,544
)
1,783
Net income (loss)
$
9,272
$
(8,880
)
$
172,709
$
(43,536
)
Net loss attributable to redeemable non-controlling interest
(102
)
(120
)
(664
)
(801
)
Net income (loss) attributable to PagerDuty, Inc.
$
9,374
$
(8,760
)
$
173,373
$
(42,735
)
Less: Adjustment attributable to redeemable non-controlling interest
(1,645
)
1,844
(481
)
11,725
Net income (loss) attributable to PagerDuty, Inc. common stockholders
$
11,019
$
(10,604
)
$
173,854
$
(54,460
)
Weighted average shares used in calculating net income (loss) per share:
Basic
88,041
90,422
91,212
92,000
Diluted
89,552
90,422
92,995
92,000
Net income (loss) per share attributable to PagerDuty, Inc. common stockholders:
Basic
$
0.13
$
(0.12
)
$
1.91
$
(0.59
)
Diluted
$
0.12
$
(0.12
)
$
1.87
$
(0.59
)
(1) Includes stock-based compensation expense as follows:
Three months ended January 31,
Year ended January 31,
2026
2025
2026
2025
Cost of revenue
$
985
$
1,288
$
4,283
$
5,984
Research and development
8,550
10,051
36,345
44,691
Sales and marketing
5,477
7,483
22,420
31,185
General and administrative
8,504
10,309
34,756
44,350
Total
$
23,516
$
29,131
$
97,804
$
126,210
PAGERDUTY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
January 31, 2026
January 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
237,402
$
346,460
Investments
232,436
224,366
Accounts receivable, net of allowance for credit losses of $1,175 and $1,103
108,430
107,350
Deferred contract costs, current
18,401
19,787
Prepaid expenses and other current assets
15,570
13,757
Total current assets
612,239
711,720
Property and equipment, net
29,192
21,335
Deferred contract costs, non-current
25,010
25,279
Lease right-of-use assets
12,509
6,806
Goodwill
137,401
137,401
Intangible assets, net
15,645
20,865
Deferred tax assets
153,657
—
Other assets
4,862
3,860
Total assets
$
990,515
$
927,266
Liabilities, redeemable non-controlling interest, and stockholders’ equity
Current liabilities:
Accounts payable
$
6,718
$
7,329
Accrued expenses and other current liabilities
19,868
20,322
Accrued compensation
25,856
37,505
Deferred revenue, current
246,451
243,269
Lease liabilities, current
5,000
3,307
Convertible senior notes, net, current
—
57,426
Total current liabilities
303,893
369,158
Convertible senior notes, net, non-current
395,729
393,282
Deferred revenue, non-current
2,483
2,483
Lease liabilities, non-current
12,598
9,637
Other liabilities
5,147
4,661
Total liabilities
719,850
779,221
Redeemable non-controlling interest
17,072
18,217
Stockholders' equity
Common stock
—
—
Additional paid-in-capital
679,410
725,483
Accumulated other comprehensive loss
(183
)
(485
)
Accumulated deficit
(421,797
)
(595,170
)
Treasury Stock
(3,837
)
—
Total stockholders’ equity
253,593
129,828
Total liabilities, redeemable non-controlling interest, and stockholders' equity
$
990,515
$
927,266
PAGERDUTY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three months ended January 31,
Year ended January 31,
2026
2025
2026
2025
Cash flows from operating activities:
Net income (loss) attributable to PagerDuty, Inc. common stockholders
$
11,019
$
(10,604
)
$
173,854
$
(54,460
)
Net loss and adjustment attributable to non-controlling interest
(1,747
)
1,724
(1,145
)
10,924
Net income (loss)
9,272
(8,880
)
172,709
(43,536
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
3,040
5,077
13,122
20,603
Amortization of deferred contract costs
5,453
5,747
22,317
22,008
Amortization of debt issuance costs
597
679
2,518
2,629
Stock-based compensation
23,516
29,131
97,804
126,210
Impairment of long-lived assets
—
—
1,213
—
Non-cash lease expense
776
515
2,299
3,053
Deferred income taxes
(1,814
)
(613
)
(153,517
)
(92
)
Other
93
(609
)
(1,799
)
(4,461
)
Changes in operating assets and liabilities:
Accounts receivable
(30,117
)
(32,793
)
(2,137
)
(8,042
)
Deferred contract costs
(6,239
)
(7,018
)
(20,697
)
(22,459
)
Prepaid expenses and other assets
(3,112
)
3,149
(2,753
)
(1,930
)
Accounts payable
(148
)
537
(704
)
1,140
Accrued expenses and other liabilities
1,431
6,099
(3,474
)
4,276
Accrued compensation
(2,423
)
2,910
(12,183
)
6,912
Deferred revenue
25,908
29,081
3,251
17,695
Lease liabilities
(823
)
(1,610
)
(3,112
)
(6,115
)
Net cash provided by operating activities
25,410
31,402
114,857
117,891
Cash flows from investing activities:
Purchases of property and equipment
(883
)
(1,145
)
(2,941
)
(2,791
)
Capitalized software costs
(1,966
)
(1,667
)
(9,233
)
(6,686
)
Purchases of available-for-sale investments
(58,231
)
(61,593
)
(195,640
)
(214,714
)
Proceeds from maturities of available-for-sale investments
49,850
54,159
189,539
201,986
Proceeds from sales of available-for-sale investments
—
—
1,248
2,237
Purchases of non-marketable equity investments
—
—
(1,250
)
—
Net cash used in investing activities
(11,230
)
(10,246
)
(18,277
)
(19,968
)
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of issuance costs
—
—
—
(403
)
Repayments of convertible senior notes
—
—
(57,500
)
—
Repurchases of common stock
(98,778
)
(2,581
)
(134,916
)
(100,104
)
Proceeds from employee stock purchase plan
2,265
3,256
6,883
8,991
Proceeds from issuance of common stock upon exercise of stock options
17
2,812
3,956
4,339
Employee payroll taxes paid related to net share settlement of restricted stock units
(4,541
)
(6,302
)
(24,846
)
(28,961
)
Net cash used in financing activities
(101,037
)
(2,815
)
(206,423
)
(116,138
)
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash
(1
)
(15
)
(4
)
(124
)
Net change in cash, cash equivalents, and restricted cash
(86,858
)
18,326
(109,847
)
(18,339
)
Cash, cash equivalents, and restricted cash at beginning of year
325,339
330,002
348,328
366,667
Cash, cash equivalents, and restricted cash at end of year
$
238,481
$
348,328
$
238,481
$
348,328
Non-GAAP Financial Measures
This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to PagerDuty, Inc. common stockholders, non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders, free cash flow, and free cash flow margin.
PagerDuty believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and can assist in comparisons with other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.
The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in PagerDuty’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by PagerDuty’s management about which expenses and income are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP.
Specifically, PagerDuty excludes the following from its historical and prospective non-GAAP financial measures, as applicable:
Stock-based compensation: PagerDuty utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.
Employer taxes related to employee stock transactions: PagerDuty views the amount of employer taxes related to its employee stock transactions as an expense that is dependent on its stock price, employee exercise and other award disposition activity, and other factors that are beyond PagerDuty’s control. As a result, employer taxes related to employee stock transactions vary for reasons that are generally unrelated to financial and operational performance in any particular period.
Amortization of acquired intangible assets: PagerDuty views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.
Acquisition-related expenses: PagerDuty views acquisition-related expenses, such as transaction costs, acquisition-related retention payments, and acquisition-related asset impairment, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.
Amortization of debt issuance costs: The imputed interest rates of the Company's convertible senior notes (the "2025 Notes" and the "2028 Notes" or, collectively, the "Notes") was approximately 1.91% for the 2025 Notes and 2.13% for the 2028 Notes. This is a result of the debt issuance costs, which reduce the carrying value of the convertible debt instruments. The debt issuance costs are amortized as interest expense. The expense for the amortization of the debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.
Restructuring costs: PagerDuty views restructuring costs, such as employee severance-related costs, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.
Shareholder matters: PagerDuty views certain charges, including third-party legal, consulting, and advisory fees, related to shareholder activity that are outside of the ordinary course of our business and expenses related to a cooperation agreement as events that are not necessarily reflective of operational performance during a period. PagerDuty believes that such charges do not have a direct correlation to the operations of the Company’s business and may vary in size depending on the timing, results, and resolution of such shareholder matters. The consideration of measures that exclude such expenses can assist in the comparison of operational performance in periods which may or may not include such expenses.
Impairment of long-lived assets: PagerDuty views non-cash charges for impairment of long-lived assets, including impairments related to capitalized software costs, office leases, and acquired intangible assets, as events that are not necessarily reflective of operational performance during a period. Impairment charges can vary significantly in terms of amount and timing and PagerDuty believes the exclusion of such adjustments can assist in comparison of operational performance in different periods.
Adjustment attributable to redeemable non-controlling interest: PagerDuty adjusts the value of redeemable non-controlling interest of its joint venture PagerDuty K.K. according to the operating agreement. PagerDuty believes this adjustment is not reflective of operational performance during a period and exclusion of such adjustments can assist in comparison of operational performance in different periods.
Income tax effects and adjustments: For fiscal 2026, PagerDuty used a projected non-GAAP tax rate of 22%. Based on PagerDuty's financial outlook for the first quarter of and full year fiscal 2027, PagerDuty will utilize a projected non-GAAP tax rate of 20% in order to provide better consistency across the interim reporting periods by eliminating the impact of non-recurring and period specific items, which can vary in size and frequency. PagerDuty's estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that PagerDuty believes materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events.
Non-GAAP gross profit and non-GAAP gross margin
We define non-GAAP gross profit as gross profit excluding the following expenses typically included in cost of revenue: stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, and restructuring costs. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.
Non-GAAP operating expenses
We define non-GAAP operating expenses as operating expenses excluding stock-based compensation expense, employer taxes related to employee stock transactions, acquisition-related expenses, which include transaction costs, acquisition-related retention payments, and asset impairment, amortization of acquired intangible assets, and restructuring costs , shareholder matters, and impairment of long-lived assets, which are not necessarily reflective of operational performance during a given period.
Non-GAAP operating income and non-GAAP operating margin
We define non-GAAP operating income as income (loss) from operations excluding stock-based compensation expense, employer taxes related to employee stock transactions, acquisition-related expenses, amortization of acquired intangible assets, restructuring costs, shareholder matters, and impairment of long-lived assets, which are not necessarily reflective of operational performance during a given period. We define non-GAAP operating margin as non-GAAP operating income as a percentage of revenue.
Non-GAAP net income attributable to PagerDuty, Inc. common stockholders
We define non-GAAP net income attributable to PagerDuty, Inc. common stockholders as net income (loss) attributable to PagerDuty, Inc. common stockholders excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, shareholder matters, impairment of long-lived assets, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments, which are not necessarily reflective of operational performance during a given period.
Non-GAAP net income per share, basic and diluted
We define non-GAAP net income per share, basic as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average shares outstanding at the end of the reporting period. We define non-GAAP net income per share, diluted as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average diluted shares outstanding at the end of the reporting period.
Free cash flow and free cash flow margin
We define free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment and capitalization of software costs. We define free cash flow margin as free cash flow as a percentage of revenue. In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives. A limitation of the utility of free cash flow as a measure of our liquidity is that it does not represent the total increase or decrease in our cash balance for the period. We use free cash flow in conjunction with traditional U.S. GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies. There are a number of limitations related to the use of free cash flow as compared to net cash provided by operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.
PagerDuty encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate PagerDuty’s business.
Please see the reconciliation tables at the end of this release for the reconciliation of non-GAAP financial measures to their most-comparable GAAP financial measures.
PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except percentages and per share data)
(unaudited)
Three months ended January 31,
Year ended January 31,
2026
2025
2026
2025
Non-GAAP gross profit and non-GAAP gross margin
Gross profit
$
107,185
$
101,472
$
418,404
$
387,834
Add:
Stock-based compensation
985
1,288
4,283
5,984
Employer taxes related to employee stock transactions
38
50
125
162
Amortization of acquired intangible assets
320
2,200
2,700
9,075
Restructuring costs
—
—
292
(2
)
Non-GAAP gross profit
$
108,528
$
105,010
$
425,804
$
403,053
Revenue
$
124,785
$
121,446
$
492,546
$
467,499
Gross margin
85.9
%
83.6
%
84.9
%
83.0
%
Non-GAAP gross margin
87.0
%
86.5
%
86.4
%
86.2
%
Non-GAAP operating expenses
Research and development
$
32,574
$
34,611
$
126,937
$
141,489
Less:
Stock-based compensation
8,550
10,051
36,345
44,691
Employer taxes related to employee stock transactions
343
425
958
1,116
Acquisition-related expenses
—
228
263
978
Amortization of acquired intangible assets
—
—
—
116
Restructuring costs
—
426
1,707
424
Impairment of long-lived assets
—
—
1,213
—
Non-GAAP research and development
$
23,681
$
23,481
$
86,451
$
94,164
Sales and marketing
$
45,217
$
53,084
$
184,040
$
201,821
Less:
Stock-based compensation
5,477
7,483
22,420
31,185
Employer taxes related to employee stock transactions
205
310
587
773
Amortization of acquired intangible assets
622
633
2,520
2,530
Restructuring costs
9
150
3,296
140
Non-GAAP sales and marketing
$
38,904
$
44,508
$
155,217
$
167,193
General and administrative
$
24,872
$
25,496
$
101,587
$
104,296
Less:
Stock-based compensation
8,504
10,309
34,756
44,350
Employer taxes related to employee stock transactions
217
282
644
745
Acquisition-related expenses
23
—
23
(1
)
Amortization of acquired intangible assets
—
—
—
29
Restructuring costs
10
156
695
180
Shareholder matters
—
—
2,470
—
Non-GAAP general and administrative
$
16,118
$
14,749
$
62,999
$
58,993
Note: Certain figures may not sum due to rounding.
PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except percentages and per share data)
(unaudited)
Three months ended January 31,
Year ended January 31,
2026
2025
2026
2025
Non-GAAP operating income and non-GAAP operating margin
Income (loss) from operations
$
4,522
$
(11,719
)
$
5,840
$
(59,772
)
Add:
Stock-based compensation
23,516
29,131
97,804
126,210
Employer taxes related to employee stock transactions
803
1,067
2,314
2,796
Acquisition-related expenses
23
228
286
977
Amortization of acquired intangible assets
942
2,833
5,220
11,750
Restructuring costs
19
732
5,990
742
Shareholder matters
—
—
2,470
—
Impairment of long-lived assets
—
—
1,213
—
Non-GAAP operating income
$
29,825
$
22,272
$
121,137
$
82,703
Revenue
$
124,785
$
121,446
$
492,546
$
467,499
Operating margin
3.6
%
(9.6
)%
1.2
%
(12.8
)%
Non-GAAP operating margin
23.9
%
18.3
%
24.6
%
17.7
%
Non-GAAP net income attributable to PagerDuty, Inc. common stockholders
Net income (loss) attributable to PagerDuty, Inc. common stockholders
$
11,019
$
(10,604
)
$
173,854
$
(54,460
)
Add:
Stock-based compensation
23,516
29,131
97,804
126,210
Employer taxes related to employee stock transactions
803
1,067
2,314
2,796
Amortization of debt issuance costs
597
679
2,518
2,629
Amortization of acquired intangible assets
942
2,833
5,220
11,750
Acquisition-related expenses
23
228
286
977
Restructuring costs
19
732
5,990
742
Shareholder matters
—
—
2,470
—
Impairment of long-lived assets
—
—
1,213
—
Adjustment attributable to redeemable non-controlling interest
(1,645
)
1,844
(481
)
11,725
Income tax effects and adjustments
(9,154
)
(5,587
)
(182,897
)
(21,989
)
Non-GAAP net income attributable to PagerDuty, Inc. common stockholders
$
26,120
$
20,323
$
108,291
$
80,380
Non-GAAP net income per share, basic
Net income (loss) per share, basic, attributable to PagerDuty, Inc. common stockholders
$
0.13
$
(0.12
)
$
1.91
$
(0.59
)
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders
0.17
0.34
(0.72
)
1.46
Non-GAAP net income per share, basic, attributable to PagerDuty, Inc. common stockholders
$
0.30
$
0.22
$
1.19
$
0.87
Non-GAAP net income per share, diluted
Net income (loss) per share, diluted, attributable to PagerDuty, Inc. common stockholders
$
0.12
$
(0.12
)
$
1.87
$
(0.59
)
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders
0.17
0.34
(0.71
)
1.44
Non-GAAP net income per share, diluted, attributable to PagerDuty, Inc. common stockholders
$
0.29
$
0.22
$
1.16
$
0.85
Weighted average shares used in calculating net income (loss) per share:
Basic
88,041
90,422
91,212
92,000
Diluted
89,552
90,422
92,995
92,000
Weighted-average shares used in calculating non-GAAP net income per share
Basic
88,041
90,422
91,212
92,000
Diluted
89,552
92,999
92,995
95,060
Note: Certain figures may not sum due to rounding.
PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except percentages)
(unaudited)
Three months ended January 31,
Year ended January 31,
2026
2025
2026
2025
Free cash flow and free cash flow margin
Net cash provided by operating activities
$
25,410
$
31,402
$
114,857
$
117,891
Purchases of property and equipment
(883
)
(1,145
)
(2,941
)
(2,791
)
Capitalization of software costs
(1,966
)
(1,667
)
(9,233
)
(6,686
)
Free cash flow
$
22,561
$
28,590
$
102,683
$
108,414
Net cash used in investing activities
$
(11,230
)
$
(10,246
)
$
(18,277
)
$
(19,968
)
Net cash used in financing activities
$
(101,037
)
$
(2,815
)
$
(206,423
)
$
(116,138
)
Revenue
$
124,785
$
121,446
$
492,546
$
467,499
Operating cash flow margin
20.4
%
25.9
%
23.3
%
25.2
%
Free cash flow margin
18.1
%
23.5
%
20.8
%
23.2
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260312052737/en/
Investor Relations Contact:
Paul Underwood
investor@pagerduty.com
Media Contact:
Debbie O'Brien
media@pagerduty.com
SOURCE PagerDuty
Original: PagerDuty Announces Fourth Quarter and Full Year Fiscal 2026 Financial Results
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