Third quarter revenue increased 31% year over
year to $94.2 million
Third quarter GAAP operating loss of $32.5
million, non-GAAP operating income of $3.0 million
PagerDuty, Inc. (NYSE:PD), a leader in digital operations
management, today announced financial results for the third quarter
of fiscal 2023, ended October 31, 2022.
"PagerDuty delivered another strong quarter, exceeding the high
end of both our top and bottom line ranges, with revenue up 31%
year on year, and operating margin improving 1,000 basis points to
achieve profitability a quarter ahead of expectations," said
Jennifer Tejada, Chair and CEO at PagerDuty. "Despite a volatile
macroeconomic backdrop, we made significant progress in realizing
profitable, durable growth. PagerDuty’s Operations Cloud deploys
easily, has a high ROI, and low cost of ownership – more relevant
than ever in today’s environment. Our enterprise customers remain
focused on minimizing the impact of incidents to protect revenue
and deliver great customer experiences while reducing their costs.
For them, PagerDuty is essential infrastructure.”
Third Quarter Fiscal 2023 Financial Highlights
- Revenue was $94.2 million, an increase of 31.3% year over
year.
- GAAP operating loss was $32.5 million; GAAP operating margin of
negative 34.5%.
- Non-GAAP operating income was $3.0 million; non-GAAP operating
margin of 3.2%.
- GAAP net loss per share attributable to PagerDuty, Inc. was
$0.36; non-GAAP net income per diluted share attributable to
PagerDuty, Inc. was $0.04.
- Operating cash flow was $(0.4) million, with free cash flow of
$(2.3) million.
- Cash, cash equivalents and current investments were $459.4
million as of October 31, 2022.
The section titled “Non-GAAP Financial Measures” below contains
a description of the non-GAAP financial measures and
reconciliations between historical GAAP and non-GAAP
information.
Third Quarter and Recent Highlights
- Finished the third quarter with 15,265 total paid customers as
of October 31, 2022, compared to 14,486 in the year ago
period.
- Reported 710 customers with annual recurring revenue over
$100,000 as of October 31, 2022, compared to 543 in the year ago
period.
- Customer wins and expansions in the period included Centene
Corporation, Gong, IBM, OSI Systems, PG&E, Samsung, Solera
Holding, Vanguard, Worldline, and Zoom.
- Delivered a third quarter dollar-based net retention rate of
123% as of October 31, 2022, compared to 124% in the year ago
period.
- Achieved non-GAAP profitability a quarter ahead of previous
guidance, expanding non-GAAP operating margin to 3% for the three
months ended October 31, 2022, an improvement of 1,000 basis points
over the year ago period.
- Reported international revenue of 23% of total revenue for the
three months ended October 31, 2022, compared to 24% in the year
ago period.
- Released significant capabilities across the PagerDuty
Operations Cloud that will help customers save money and drive
operational efficiency, including flexible incident workflows,
AIOps-powered alert management, and customer-facing status
pages.
- Released Process Automation for Amazon Web Services (AWS) to
the AWS Marketplace, including prebuilt diagnostic automations for
popular AWS products and services.
- Named a leader in Incident Response, AIOps, and Workload
Automation by G2.
- Named 2022 AWS Rising Star ISV Partner of the Year for
“significant year-over-year growth in business on the AWS
Marketplace.”
- Deepened the company’s technical leadership with the
appointment of a CIO and CISO.
- Recognized as one of Stevie Awards Employers of the Year for
special achievement in workplace health and wellbeing, and best
corporate social responsibility strategy.
- Won TrustRadius Tech Cares Award for ongoing commitment to
corporate social responsibility.
- Launched PagerDuty Impact Labs to deliver full-spectrum
philanthropic support to grantees advancing time-critical health
and climate equity outcomes.
Financial Outlook
For the fourth quarter of fiscal 2023, PagerDuty currently
expects:
- Total revenue of $98.0 million - $100.0 million, representing a
growth rate of 25% - 27% year over year
- Non-GAAP net income per diluted share attributable to
PagerDuty, Inc. of $0.02 - $0.03 assuming approximately 102 million
diluted shares
For the full fiscal year 2023, PagerDuty currently
expects:
- Total revenue of $368.0 million - $370.0 million, representing
a growth rate of 31% - 31% year over year
- Non-GAAP net loss per share attributable to PagerDuty, Inc. of
$0.01 - $0.00 assuming approximately 90 million basic shares and
101 million diluted shares
These statements are forward-looking and actual results may
differ materially. Please refer to the Forward-Looking Statements
section 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 (loss) per share attributable to PagerDuty, Inc. to GAAP net
loss per share attributable to PagerDuty, Inc. because certain
items are out of its control or cannot be reasonably predicted.
Accordingly, a reconciliation for forward-looking non-GAAP net
income (loss) per share attributable to PagerDuty, Inc. is not
available without unreasonable effort.
Conference Call Information:
PagerDuty will host a conference call and live webcast for
analysts and investors at 2:00 p.m. Pacific Time on December 1,
2022. 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), Twitter account
(twitter.com/pagerduty), the Twitter account @jenntejada and
Facebook page (facebook.com/pagerduty), and public conference calls
and webcasts.
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 (loss), non-GAAP operating margin, non-GAAP net
income (loss) attributable to PagerDuty, Inc., non-GAAP net income
(loss) per share attributable to PagerDuty, Inc., and free cash
flow.
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 rate
of the Convertible Senior Notes (the "Notes") was approximately
1.93%. 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.
Income Tax Effect of Non-GAAP Adjustments: PagerDuty excludes
the related income tax effect of the non-GAAP adjustments described
above and eliminates the impact of non-recurring and period
specific items, which can vary in size and frequency. In
particular, PagerDuty believes the consideration of measures that
exclude such impacts can assist in the comparison of operational
performance in different periods, which may or may not include
items such as acquisition related income tax benefits. In the nine
months ended October 31, 2022, the balance excludes the impact of
non-recurring items for acquisition related income tax benefits. To
date, the income tax effect of the non-GAAP adjustments has not
been material.
PagerDuty defines non-GAAP operating income (loss) as GAAP loss
from operations excluding stock-based compensation expense,
employer taxes related to employee stock transactions, amortization
of acquired intangible assets, and acquisition-related expenses.
PagerDuty defines non-GAAP net income (loss) attributable to
PagerDuty, Inc. (which is used in calculating non-GAAP net income
(loss) per share attributable to PagerDuty, Inc.) as GAAP net loss
attributable to PagerDuty, Inc. excluding amortization of debt
issuance costs and debt discount, stock-based compensation expense,
employer taxes related to employee stock transactions, amortization
of acquired intangible assets, acquisition-related expenses, and
the associated tax impact of these items, where applicable. There
are a number of limitations related to the use of these non-GAAP
measures as compared to GAAP operating loss and net loss, including
that the non-GAAP measures exclude stock-based compensation
expense, which has been, and will continue to be for the
foreseeable future, a significant recurring expense in PagerDuty’s
business and an important part of its compensation strategy.
PagerDuty defines free cash flow as net cash provided by (used
in) operating activities, less cash used for purchases of property
and equipment and capitalized internal-use software. In addition to
the reasons stated above, PagerDuty believes that free cash flow is
useful to investors as a liquidity measure because it measures
PagerDuty’s ability to generate or use cash in excess of its
capital investments in property and equipment to strengthen its
balance sheet and further invest in its business and potential
strategic initiatives. PagerDuty uses free cash flow in conjunction
with traditional GAAP measures as part of its overall assessment of
its liquidity, including the preparation of PagerDuty’s annual
operating budget and quarterly forecasts, to evaluate the
effectiveness of its business strategies, and to assess its
liquidity.
There are a number of limitations related to the use of free
cash flow as compared to net cash provided by (used in) 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 GAAP and non-GAAP results.
Forward-Looking Statements:
This press release 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 performance and
outlook 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, 2022.
Additional information will be made available in our Quarterly
Report on Form 10-Q for the quarter ended October 31, 2022 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: the effect
of uncertainties related to the COVID-19 pandemic on U.S. and
global markets, our business, operations, revenue results, cash
flow, operating expenses, demand for our solutions, sales cycles,
customer retention and our customers’ businesses; our ability to
achieve and maintain future profitability; our ability to attract
new customers and retain and sell additional functionality and
services to our existing customers; our ability to sustain and
manage our growth; our dependence on revenue from a single product;
our ability to compete effectively in an increasingly competitive
market; and general global market, political, economic, and
business conditions.
Past performance is not necessarily indicative of future
results. The forward-looking statements included in this press
release represent our views as of the date of this press release.
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.
About PagerDuty
PagerDuty, Inc. (NYSE:PD) is a leader in digital operations
management. In an always-on world, organizations of all sizes trust
PagerDuty to help them deliver a better digital experience to their
customers, every time. Teams use PagerDuty to identify issues and
opportunities in real time and bring together the right people to
fix problems faster and prevent them in the future. Notable
customers include Cisco, Genentech, Electronic Arts, Cox
Automotive, Shopify, Zoom, DoorDash and more. To learn more and try
PagerDuty for free, visit www.pagerduty.com. Follow our blog and
connect with us on Twitter, LinkedIn, YouTube and Facebook. We’re
also hiring, visit https://www.pagerduty.com/careers/ to learn
more.
PagerDuty, Inc. Condensed
Consolidated Statements of Operations (in thousands, except per
share data) (unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2022
2021
2022
2021
Revenue
$
94,203
$
71,760
$
269,827
$
202,887
Cost of revenue(1)
18,007
12,039
52,090
34,433
Gross profit
76,196
59,721
217,737
168,454
Operating expenses:
Research and development(1)
35,004
24,554
100,307
68,062
Sales and marketing(1)
47,118
40,176
143,001
118,224
General and
administrative(1)
26,616
19,808
77,316
56,680
Total operating expenses
108,738
84,538
320,624
242,966
Loss from operations
(32,542
)
(24,817
)
(102,887
)
(74,512
)
Interest income
1,382
705
2,760
2,306
Interest expense
(1,360
)
(1,350
)
(4,072
)
(4,045
)
Other expense, net
(172
)
(729
)
(1,326
)
(1,931
)
Loss before (provision for) benefit from
income taxes
(32,692
)
(26,191
)
(105,525
)
(78,182
)
(Provision for) benefit from income
taxes
(112
)
(150
)
1,302
(378
)
Net loss
$
(32,804
)
$
(26,341
)
$
(104,223
)
$
(78,560
)
Net loss attributable to redeemable
non-controlling interest
(262
)
—
(362
)
—
Net loss attributable to PagerDuty,
Inc.
$
(32,542
)
$
(26,341
)
$
(103,861
)
$
(78,560
)
Net loss per share, basic and diluted,
attributable to PagerDuty, Inc.
$
(0.36
)
$
(0.31
)
$
(1.18
)
$
(0.94
)
Weighted-average shares used in
calculating net loss per share, basic and diluted
89,285
85,092
88,200
83,979
(1)
Includes stock-based compensation expense
as follows:
Three Months Ended October
31,
Nine Months Ended October
31,
2022
2021
2022
2021
Cost of revenue
$
1,937
$
861
$
4,948
$
2,560
Research and development
10,824
6,183
30,066
16,230
Sales and marketing
8,004
4,606
22,533
12,961
General and administrative
10,679
6,128
28,931
16,115
Total
$
31,444
$
17,778
$
86,478
$
47,866
PagerDuty, Inc. Condensed
Consolidated Balance Sheets (in thousands) (unaudited)
As of October 31, 2022
As of January 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
262,333
$
349,785
Investments
197,104
193,571
Accounts receivable, net of
allowance for credit losses of $1,515 and $1,809 as of October 31,
2022 and January 31, 2022, respectively
72,628
75,279
Deferred contract costs,
current
18,007
16,672
Prepaid expenses and other
current assets
13,545
9,777
Total current assets
563,617
645,084
Property and equipment, net
18,339
18,229
Deferred contract costs,
non-current
26,968
26,159
Lease right-of-use assets
15,141
20,227
Goodwill
118,862
72,126
Intangible assets, net
40,029
23,133
Other assets
1,054
1,490
Total assets
$
784,010
$
806,448
Liabilities, redeemable non-controlling
interest, and stockholders’ equity
Current liabilities:
Accounts payable
$
7,692
$
9,505
Accrued expenses and other
current liabilities
12,884
13,640
Accrued compensation
34,955
35,327
Deferred revenue, current
175,380
162,881
Lease liabilities, current
6,438
5,637
Total current liabilities
237,349
226,990
Convertible senior notes,
net
282,445
281,069
Deferred revenue,
non-current
4,335
7,343
Lease liabilities,
non-current
14,155
20,912
Other liabilities
3,826
3,159
Total liabilities
542,110
539,473
Redeemable non-controlling interest
1,551
—
Stockholders’ equity:
Common stock
—
—
Additional paid-in-capital
696,169
616,467
Accumulated other comprehensive
loss
(3,136
)
(669
)
Accumulated deficit
(452,684
)
(348,823
)
Total stockholders’ equity
240,349
266,975
Total liabilities, redeemable
non-controlling interest, and stockholders’ equity
$
784,010
$
806,448
PagerDuty, Inc. Condensed
Consolidated Statements of Cash Flows (in thousands)
(unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2022
2021
2022
2021
Cash flows from operating
activities
Net loss attributable to PagerDuty,
Inc.
$
(32,542
)
$
(26,341
)
$
(103,861
)
$
(78,560
)
Net loss attributable to redeemable
non-controlling interest
(262
)
—
(362
)
—
Net loss
(32,804
)
(26,341
)
(104,223
)
(78,560
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation and
amortization
4,498
2,133
12,778
6,160
Amortization of deferred
contract costs
4,922
3,839
14,178
10,651
Amortization of debt issuance
costs
461
452
1,376
1,350
Stock-based compensation
31,444
17,778
86,478
47,866
Non-cash lease expense
611
1,122
2,913
3,331
Tax benefit related to release
of valuation allowance
—
—
(1,330
)
—
Other
(124
)
897
1,686
2,592
Changes in operating assets and
liabilities:
Accounts receivable
(13,473
)
(6,113
)
3,048
360
Deferred contract costs
(6,290
)
(7,357
)
(16,323
)
(16,842
)
Prepaid expenses and other
assets
(1,424
)
1,905
(2,934
)
(857
)
Accounts payable
1,109
2,657
(1,117
)
3,836
Accrued expenses and other
liabilities
(4,593
)
(3,452
)
(1,350
)
(79
)
Accrued compensation
6,034
7,590
(624
)
3,760
Deferred revenue
10,181
8,848
8,635
12,878
Lease liabilities
(1,000
)
(1,308
)
(3,783
)
(3,812
)
Net cash (used in) provided
by operating activities
(448
)
2,650
(592
)
(7,366
)
Cash flows from investing
activities
Purchases of property and
equipment
(815
)
(85
)
(3,755
)
(1,376
)
Capitalization of internal-use
software costs
(988
)
(784
)
(2,725
)
(2,701
)
Business acquisition, net of
cash acquired
—
—
(66,262
)
(160
)
Asset acquisition
—
—
(1,845
)
—
Purchases of available-for-sale
investments
(59,842
)
(34,505
)
(155,310
)
(150,608
)
Proceeds from maturities of
available-for-sale investments
54,425
40,466
149,625
156,616
Proceeds from sales of
available-for-sale investments
—
—
—
27,380
Net cash (used in) provided
by investing activities
(7,220
)
5,092
(80,272
)
29,151
Cash flows from financing
activities
Investment from redeemable
non-controlling interest holder
—
—
1,908
—
Proceeds from employee stock
purchase plan
—
—
5,736
4,889
Proceeds from issuance of
common stock upon exercise of stock options
1,899
5,087
8,459
12,517
Employee payroll taxes paid
related to net share settlement of restricted stock units
(9,864
)
(7,616
)
(22,187
)
(18,619
)
Net cash used in financing
activities
(7,965
)
(2,529
)
(6,084
)
(1,213
)
Effects of foreign currency exchange rates
on cash, cash equivalents, and restricted cash
(365
)
—
(504
)
—
Net (decrease) increase in cash, cash
equivalents, and restricted cash
(15,998
)
5,213
(87,452
)
20,572
Cash, cash equivalents, and restricted
cash at beginning of period
278,331
354,525
349,785
339,166
Cash, cash equivalents, and restricted
cash at end of period
$
262,333
$
359,738
$
262,333
$
359,738
PagerDuty, Inc. Reconciliation
of GAAP to Non-GAAP Financial Measures (in thousands, except
percentages) (unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2022
2021
2022
2021
Reconciliation of gross profit and
gross margin
GAAP gross profit
$
76,196
$
59,721
$
217,737
$
168,454
Plus: Stock-based
compensation
1,937
861
4,948
2,560
Plus: Employer taxes related to
employee stock transactions
38
22
79
78
Plus: Amortization of acquired
intangible assets
1,949
280
5,314
840
Non-GAAP gross profit
$
80,120
$
60,884
$
228,078
$
171,932
GAAP gross margin
80.9
%
83.2
%
80.7
%
83.0
%
Non-GAAP adjustments
4.2
%
1.6
%
3.8
%
1.7
%
Non-GAAP gross margin
85.1
%
84.8
%
84.5
%
84.7
%
Reconciliation of operating
expenses
GAAP research and development
$
35,004
$
24,554
$
100,307
$
68,062
Less: Stock-based
compensation
(10,824
)
(6,183
)
(30,066
)
(16,230
)
Less: Employer taxes related to
employee stock transactions
(202
)
(212
)
(559
)
(618
)
Less: Acquisition-related
expenses
(738
)
(442
)
(3,100
)
(1,348
)
Less: Amortization of acquired
intangible assets
(29
)
—
(145
)
—
Non-GAAP research and development
$
23,211
$
17,717
$
66,437
$
49,866
GAAP sales and marketing
$
47,118
$
40,176
$
143,001
$
118,224
Less: Stock-based
compensation
(8,004
)
(4,606
)
(22,533
)
(12,961
)
Less: Employer taxes related to
employee stock transactions
(148
)
(175
)
(468
)
(533
)
Less: Amortization of acquired
intangible assets
(643
)
(595
)
(1,936
)
(1,785
)
Non-GAAP sales and marketing
$
38,323
$
34,800
$
118,064
$
102,945
GAAP general and administrative
$
26,616
$
19,808
$
77,316
$
56,680
Less: Stock-based compensation
(10,679
)
(6,128
)
(28,931
)
(16,115
)
Less: Employer taxes related to employee
stock transactions
(195
)
(286
)
(650
)
(857
)
Less: Acquisition-related expenses
(164
)
—
(1,454
)
(8
)
Less: Amortization of acquired intangible
assets
(7
)
—
(36
)
—
Non-GAAP general and administrative
$
15,571
$
13,394
$
46,245
$
39,700
Note: Certain figures may not sum due to
rounding.
PagerDuty, Inc. Reconciliation
of GAAP to Non-GAAP Financial Measures (in thousands, except
percentages and per share data) (unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2022
2021
2022
2021
Reconciliation of operating income
(loss) and operating margin
GAAP operating loss
$
(32,542
)
$
(24,817
)
$
(102,887
)
$
(74,512
)
Plus: Stock-based
compensation
31,444
17,778
86,478
47,866
Plus: Employer taxes related to
employee stock transactions
583
695
1,756
2,086
Plus: Amortization of acquired
intangible assets
2,628
875
7,431
2,625
Plus: Acquisition-related
expenses
902
442
4,554
1,356
Non-GAAP operating income (loss)
$
3,015
$
(5,027
)
$
(2,668
)
$
(20,579
)
GAAP operating margin
(34.5
) %
(34.6
) %
(38.1
) %
(36.7
) %
Non-GAAP adjustments
37.7
%
27.6
%
37.1
%
26.6
%
Non-GAAP operating margin
3.2
%
(7.0
) %
(1.0
) %
(10.1
) %
Reconciliation of net income
(loss)
GAAP net loss attributable to
PagerDuty, Inc.
$
(32,542
)
$
(26,341
)
$
(103,861
)
$
(78,560
)
Plus: Stock-based
compensation
31,444
17,778
86,478
47,866
Plus: Employer taxes related to
employee stock transactions
583
695
1,756
2,086
Plus: Amortization of debt
discount
461
452
1,376
1,350
Plus: Amortization of acquired
intangible assets
2,628
875
7,431
2,625
Plus: Acquisition-related
expenses
902
442
4,554
1,356
Less: Income tax effect of
non-GAAP adjustments
—
—
(1,330
)
—
Non-GAAP net income (loss) attributable to
PagerDuty, Inc.
$
3,476
$
(6,099
)
$
(3,596
)
$
(23,277
)
Reconciliation of net income (loss) per
share, basic
GAAP net loss per share, basic,
attributable to PagerDuty, Inc.
$
(0.36
)
$
(0.31
)
$
(1.18
)
$
(0.94
)
Non-GAAP adjustments to net
loss attributable to PagerDuty, Inc.
0.40
0.24
1.14
0.66
Non-GAAP net income (loss) per share,
basic, attributable to PagerDuty, Inc.
$
0.04
$
(0.07
)
$
(0.04
)
$
(0.28
)
Reconciliation of net income (loss) per
share, diluted(1)
GAAP net loss per share, diluted,
attributable to PagerDuty, Inc.
$
(0.36
)
$
(0.31
)
$
(1.18
)
$
(0.94
)
Non-GAAP adjustments to net
loss attributable to PagerDuty, Inc.
0.40
0.24
1.14
0.66
Non-GAAP net income (loss) per share,
diluted, attributable to PagerDuty, Inc.
$
0.04
$
(0.07
)
$
(0.04
)
$
(0.28
)
Weighted-average shares used in
calculating GAAP net loss per share, basic and diluted
89,285
85,092
88,200
83,979
Weighted-average shares used in
calculating non-GAAP net income (loss) per share
Basic
89,285
85,092
88,200
83,979
Diluted
100,941
85,092
88,200
83,979
Note: Certain figures may not sum due to
rounding.
(1)
The company uses the if-converted method
to calculate the non-GAAP net income per diluted share attributable
to PagerDuty, Inc. related to the convertible notes. Approximately
7.2 million shares related to the convertible notes were therefore
included in the non-GAAP diluted share number, while the numerator
used to compute this measure was increased by $0.9 million for
after-tax interest expense savings related to our convertible notes
for the three months ended October 31, 2022.
PagerDuty, Inc. Reconciliation
of GAAP to Non-GAAP Financial Measures (in thousands, except
percentages) (unaudited)
Free Cash Flow
Three Months Ended October
31,
Nine Months Ended October
31,
2022
2021
2022
2021
Net cash (used in) provided by operating
activities
$
(448
)
$
2,650
$
(592
)
$
(7,366
)
Less:
Purchases of property and
equipment
(815
)
(85
)
(3,755
)
(1,376
)
Capitalization of internal-use
software costs
(988
)
(784
)
(2,725
)
(2,701
)
Free cash flow
$
(2,251
)
$
1,781
$
(7,072
)
$
(11,443
)
Net cash (used in) provided by investing
activities
$
(7,220
)
$
5,092
$
(80,272
)
$
29,151
Net cash used in financing activities
$
(7,965
)
$
(2,529
)
$
(6,084
)
$
(1,213
)
Free cash flow margin
(2.4
) %
2.5
%
(2.6
) %
(5.6
) %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221201005940/en/
Investor Relations Contact: Tony Righetti
investor@pagerduty.com
SOURCE PagerDuty
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