PagerDuty (NYSE:PD) shares fell more than 9% after-hours after the company offered a weaker-than-expected forecast.
EPS of $0.19 came in better than the consensus estimate of $0.11. Revenue grew 19.2% year-over-year to $107.6 million, beating the consensus estimate of $104.46M.
“We accelerated momentum with our new products in our enterprise customer segment, which remains both resilient and engaged. PagerDuty advanced our generative AI offerings in the quarter to include AI-generated runbooks, expanding the Operations Cloud to address our customers’ top priorities – to protect and grow revenue, reduce operating costs and mitigate risk,” said CEO Jennifer Tejada.
For Q3/24, the company expects revenue to be in the range of $106.5-$108.5M, representing a growth rate of 13%-15% year-over-year. EPS is seen at $0.13-$0.14. This compares to the consensus of $106.91 million and $0.15, respectively.
For the full year, the company expects EPS in the range of $0.60-$0.65, compared to the consensus of $0.62, and revenue in the range of $426-$430M, compared to the consensus of $427.7M.
Baird analysts downgraded the stock to Neutral "given slower implied 2H'24 growth and tougher 1H'25 comps likely limiting upside."
"We believe that setup, coupled with this report, could make the stock a more difficult consideration for new investors," they added.
Additional reporting by Senad Karaahmetovic