Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

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

Published 03/16/2023, 08:24 AM
Updated 03/16/2023, 08:33 AM
© Reuters.  PagerDuty (PD) adds 6% as results top consensus; Analysts raise numbers

© Reuters. PagerDuty (PD) adds 6% as results top consensus; Analysts raise numbers

By Senad Karaahmetovic

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

PagerDuty posted 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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.