PagerDuty's stock dives 17% on tepid annual revenue guidance amid an uncertain economy
By Jon Swartz
PagerDuty Inc.'s stock initially drooped more than 17% in extended trading Thursday after the cloud-computing company reported quarterly results that met analysts' revenue estimates and surpassed earnings projections, but reduced its annual revenue guidance.
The company (PD) reported a fiscal first-quarter net loss of $12.8 million, or 13 cents a share, compared with a net loss of $32.8 million, or 38 cents a share, in the year-ago quarter. Adjusted earnings were 20 cents a share.
Quarterly revenue climbed 21% to $103.2 million from $85.4 million a year ago.
Analysts surveyed by FactSet had expected on average adjusted net earnings of 9 cents a share on revenue of $103.3 million.
The company also offered second-quarter revenue guidance of between $103.5 million and $105.5 million, representing a growth rate of 15% to 17%. Analysts polled by FactSet are modeling $108.8 million for the quarter. For the year, PagerDuty reduced its revenue range to $425 million to $430 million from $446 million to $452 million. Analysts are expecting $448.7 million.
"This economic environment is uncertain, but we have a strong business and the economic environment will improve," PagerDuty Chief Financial Officer Howard Wilson said in an interview. "Deals are still happening, but they are taking longer. Customers are not leaving us. They are not buying ahead, but buying exactly what they need."
Wilson pointed to a healthy non-GAAP operating margin of 15.5% and a record non-GAAP operating income of $16.1 million during the just-concluded first quarter.
Shares of PagerDuty are up 4.5% this year, while the broader S&P 500 has improved 10%.
-Jon Swartz
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
06-02-23 0900ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise