IT incident response platform PagerDuty (NYSE: PD) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
PagerDuty beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $121.4 million, up 9.3% year on year. It was a mixed quarter for the company, with accelerating customer growth but EPS guidance for next quarter missing analysts’ expectations significantly. It added 64 customers to reach a total of 15,114.
Is PagerDuty a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting PagerDuty’s revenue to grow 7.2% year on year to $119.2 million, in line with the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PagerDuty has missed Wall Street’s revenue estimates four times over the last two years.
Looking at PagerDuty’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Dynatrace delivered year-on-year revenue growth of 16.9%, beating analysts’ expectations by 2.4%, and Datadog reported revenues up 24.6%, topping estimates by 2.8%. Dynatrace traded up 5.1% following the results while Datadog’s stock price was unchanged.
Read our full analysis of Dynatrace’s results here and Datadog’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 8.5% on average over the last month. PagerDuty is up 3% during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $16.20).
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