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Digital operations platform PagerDuty (NYSE: PD) will be reporting earnings this Thursday after market hours. Here’s what to look for.
PagerDuty met analysts’ revenue expectations last quarter, reporting revenues of $124.5 million, up 4.7% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly. It added 76 customers to reach a total of 15,398.
This quarter, the market is expecting PagerDuty’s revenue to grow 1.5% year on year, slowing from the 9.3% increase it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at PagerDuty’s peers in the cloud monitoring segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dynatrace delivered year-on-year revenue growth of 18.2%, beating analysts’ expectations by 1.9%, and Datadog reported revenues up 29.2%, topping estimates by 3.8%. Dynatrace traded up 9.2% following the results while Datadog was also up 11.7%.
Investors in the cloud monitoring segment have had steady hands going into earnings, with share prices flat over the last month. PagerDuty is down 2.7% during the same time and is heading into earnings with an average analyst price target of $13.71 (compared to the current share price of $7.61).
